[baseh]

According to their video, little turbines in the wing generate the electricity and transmit it through the tether. So probably the tether is attached to a ground unit that doesnt allow twisting (i.e rotates with the tether)

http://i.imgur.com/UoEfnyW.png?1

[ricardobeat]

Yeah, that's correct, and makes more sense. They do have a page explaining the tech: http://www.makanipower.com/how-does-it-work/