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Released May 16, 2024 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--With the growing demand for worldwide electrification, there is a heightened focus on renewable sources of energy to facilitate the clean-energy transition. While solar and wind power are rapidly growing, their efficient transmission remains challenging, especially over extensive distances, where conventional alternating current (AC) technology falls short. However, high-voltage direct current (HVDC) technology is now gaining ground as a promising solution for efficient energy transmission over long distances.
HVDC systems use direct current (DC) for transmitting power at high voltage across vast distances, especially from solar and wind farms to demand centers. An HVDC system receives electric power from an AC grid through a transformer, converts it into DC at a converter station and transmits it to a receiving point through overhead or underground cables. Subsequently, at the receiving terminal, the electricity is converted back into AC using another converter.
With wind farms and solar power often located in remote areas and far away from the local grids, HVDC can enable efficient and sustainable transmission of power.
Industrial Info is tracking around 117 active HVDC-related projects worth more than US$60 billion globally, with Europe, North America and Africa driving the majority of the spending. Around 95% of the spending is geared at transmission-type projects, while the rest are mainly distribution and grassroot projects. Around 64% of the spending is in the planning phase, approximately 25% is in the engineering phase, and the remainder is under construction. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a full list of projects.
Europe is driving the largest spending, with investments worth US$23.73 billion across 29 projects aimed at HVDC. The European Union's (EU) electricity consumption is projected to increase by roughly 60% by 2030.
Germany drives a large share of Europe's spending, with US$11.04 billion across two projects. TenneT TSO GmbH is one of the key players, planning to invest US$10.72 billion to construct a 700-kilometer, underground and overhead, 500-kilovolt (kV) HVDC transmission line from the Wilster Substation to Grafenrheinfeld as part of the national "SuedLink" project.
Other countries with notable investments in HVDC in Europe are Italy, U.K. and France. While the U.K. is focused mainly on setting up grassroot HVDC transmission lines, Italy, with spending worth more than US$4 billion, is aiming to set up HVDC interconnection transmission lines. Terna SpA (Italy) has two projects in the pipeline geared at constructing submarine interconnector transmission lines to provide reliable power across different regions in the country. These projects are already in the second phase of engineering and are scheduled for completion in 2026.
The next biggest spending driver is North America with investments worth US$20.61 billion in HVDC installations. The majority of the spending is concentrated in the U.S.(US$17.28 billion) across 42 active projects. The U.S. power grid comprises three asynchronous systems--the Eastern interconnection, the Western interconnection and the Texas interconnection, operating at different frequencies. Facilitating power transfers between these regions without disrupting the frequency of each system is only possible with direct-current links.
SOO Green Renewable Rail plans to invest around US$2.5 billion in several projects in the U.S. One project (US$1.29 billion) is aimed at constructing 334 to 349 miles of underground transmission line.
With spending worth US$9.65 billion, Africa also is making considerable efforts to install HVDC systems, to address increasing energy needs and integrate renewable power into existing grids more effectively for energy trading with other regions like Europe. One such project (US$2 billion) is for electrical interconnection between Egypt and Europe to export renewable energy to Cyprus, Greece and Italy as part of the Euro-Africa Interconnection.
Asia follows with investments worth US$5.48 billion. China is the top spending driver, accounting for about 62% of the total spending in the region. China State Grid Corporation is the dominant player with investments worth US$1.03 billion across three projects. This includes a ±800-kV converter station in Beijing, China.
Despite the benefits and reliability HVDC offers in terms of long-distance transmission capability, the technology does face challenges, including high upfront costs and technologically complex deployment that require specialized as well as expensive equipment along with careful installation and operation. However, as investments continue to flow into renewable energy, grid modernization and interconnection projects, HVDC technology is poised for significant growth in the future.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
HVDC systems use direct current (DC) for transmitting power at high voltage across vast distances, especially from solar and wind farms to demand centers. An HVDC system receives electric power from an AC grid through a transformer, converts it into DC at a converter station and transmits it to a receiving point through overhead or underground cables. Subsequently, at the receiving terminal, the electricity is converted back into AC using another converter.
With wind farms and solar power often located in remote areas and far away from the local grids, HVDC can enable efficient and sustainable transmission of power.
Industrial Info is tracking around 117 active HVDC-related projects worth more than US$60 billion globally, with Europe, North America and Africa driving the majority of the spending. Around 95% of the spending is geared at transmission-type projects, while the rest are mainly distribution and grassroot projects. Around 64% of the spending is in the planning phase, approximately 25% is in the engineering phase, and the remainder is under construction. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a full list of projects.
Europe is driving the largest spending, with investments worth US$23.73 billion across 29 projects aimed at HVDC. The European Union's (EU) electricity consumption is projected to increase by roughly 60% by 2030.
Germany drives a large share of Europe's spending, with US$11.04 billion across two projects. TenneT TSO GmbH is one of the key players, planning to invest US$10.72 billion to construct a 700-kilometer, underground and overhead, 500-kilovolt (kV) HVDC transmission line from the Wilster Substation to Grafenrheinfeld as part of the national "SuedLink" project.
Other countries with notable investments in HVDC in Europe are Italy, U.K. and France. While the U.K. is focused mainly on setting up grassroot HVDC transmission lines, Italy, with spending worth more than US$4 billion, is aiming to set up HVDC interconnection transmission lines. Terna SpA (Italy) has two projects in the pipeline geared at constructing submarine interconnector transmission lines to provide reliable power across different regions in the country. These projects are already in the second phase of engineering and are scheduled for completion in 2026.
The next biggest spending driver is North America with investments worth US$20.61 billion in HVDC installations. The majority of the spending is concentrated in the U.S.(US$17.28 billion) across 42 active projects. The U.S. power grid comprises three asynchronous systems--the Eastern interconnection, the Western interconnection and the Texas interconnection, operating at different frequencies. Facilitating power transfers between these regions without disrupting the frequency of each system is only possible with direct-current links.
SOO Green Renewable Rail plans to invest around US$2.5 billion in several projects in the U.S. One project (US$1.29 billion) is aimed at constructing 334 to 349 miles of underground transmission line.
With spending worth US$9.65 billion, Africa also is making considerable efforts to install HVDC systems, to address increasing energy needs and integrate renewable power into existing grids more effectively for energy trading with other regions like Europe. One such project (US$2 billion) is for electrical interconnection between Egypt and Europe to export renewable energy to Cyprus, Greece and Italy as part of the Euro-Africa Interconnection.
Asia follows with investments worth US$5.48 billion. China is the top spending driver, accounting for about 62% of the total spending in the region. China State Grid Corporation is the dominant player with investments worth US$1.03 billion across three projects. This includes a ±800-kV converter station in Beijing, China.
Despite the benefits and reliability HVDC offers in terms of long-distance transmission capability, the technology does face challenges, including high upfront costs and technologically complex deployment that require specialized as well as expensive equipment along with careful installation and operation. However, as investments continue to flow into renewable energy, grid modernization and interconnection projects, HVDC technology is poised for significant growth in the future.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
