For a given voltage, it has always been more economical to transmit electrical power as DC rather than AC because of the greater line losses when using AC, going back to battles between Edison and Tesla. DC transmission also eliminates the challenging problem of synchronizing line frequency and phase between remote locations.
The main problem for DC has been in stepping the voltage up and down. At the time of Tesla's victory the AC transformer provided the only practical, no-moving-parts way of doing so. Technology gradually came to the rescue, and the first commercial HVDC line was installed in '54. Today high power semiconductor thyristors and FETs make DC voltage changes practical and increasingly economic, though it still doesn't compete with AC at the end points. Thus at the moment HVDC is only used on very long lines where the power savings pays for the end equipment; underground and undersea cables are even more attractive for DC for the reasons discussed up thread. Recently alternative energy sources such as wind and concentrated solar, where the source is variable and often far removed from the load, have stepped up the buzz on HVDC.
See e.g.
http://www.abb.co.uk/cawp/gad02181/5950ab82df908d0cc1256e89002f3e6f.aspx?