The global High-Voltage Direct Current (HVDC) converter stations market will expand significantly in the next few years, driven by the rising demand for electricity in the Asia-Pacific region and the growth in renewable energy generation, says research and consulting firm GlobalData.
According to the company’s latest report, (High-Voltage Direct Current (HVDC) Converter Stations – Global Market Size, Average Pricing and Equipment Market Share to 2020), the revenue of the global HVDC converter station market increased from $1.1 billion in 2006 to $8.3 billion in 2012. GlobalData forecasts the market to grow even further, reaching $89.6 billion between 2013 and 2020, with its cumulative capacity reaching 543.7 GW in the forecast period.
A major driver will be a need to transmit clean energy generated in renewable power plants to urban areas with fewer transmission losses. Additionally, the HVDC converter station market will also benefit from the increasing number of cross-border interconnections being implemented in Europe, Asia-Pacific and the Middle-East to improve electricity security and reliability.
Currently, China tops a list of the HVDC substation market, accounting for a cumulative share of 51% between 2006 and 2012. By 2020, the Chinese HVDC converter station market is expected to reach a value of $27.1 billion.
“Power plants in China are located close to the sources of fuel — hydropower and offshore wind power plants — and are far away from the urban areas,” says Ginni Hima Bindu, GlobalData’s analyst covering Power. “This means power must transmit over long distances, leading to a growing need for stable HVDC infrastructure.”
“Furthermore, the advanced technology in HVDC systems can provide transmission systems with benefits such as transient stability improvement, voltage stability and control, absence of reactive power, and the removal of cascading disturbances. HVDC transmission lines allow power transmission over long distances — around 500 km and more — with minimal power losses.”
However, high implementation costs and the lengthy approval processes for transmission projects are major barriers to the growth of HVDC systems, as they only become economical when used over very long distances.
The $3,995 report (for a single user license) is said to provide an understanding of the global HVDC converter station market with the market analysis of key countries including Brazil, China, India, the UK, Germany, Norway, Sweden, and the U.S. This report details historic (2006 to 2012) and forecast data (2013 to 2020) for HVDC converter station market revenue, annual capacity additions, annual volume, average price, and market share of players for global and key country markets. The report was written with data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.