|New report suggests growth in renewable energy could drive huge expansion in market for High-Voltage Direct Current transmission technology|
The global market for high voltage grid connections could grow more than 10 fold over the next seven years to reach nearly $90bn a year, as a result of the booming market for renewable energy.
That is the conclusion of a major new report from consultancy GlobalData, launched yesterday, which highlights how related supply chains are set to benefit from the global expansion in renewables energy capacity.
The report found that global market revenues for High-Voltage Direct Current (HVDC) converter stations increased from around $1bn in 2006 to just over $8bn last year, and predicts the market could reach $89.6bn between 2013 and 2020.
The research predicts much of the growth will be driven by the expansion of renewable energy, which requires new infrastructure to transmit power, often over long distances.
HVDC technologies, which are designed to help stem transmission losses, are expected to be increasingly used by wind farm developers as projects move further offshore, while the market for onshore connections is also expected to increase led by developments in China.
"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," said Ginni Hima Bindu, GlobalData analyst, in a statement. "This means that power has to be transmitted over long distances, leading to a growing need for stable HVDC infrastructure."
However, the report points out that HVDC is only economical when used over very long distances, and predicts the market will continue to face challenges in the form of high implementation costs and the lengthy approval processes for transmission projects.
Syndicated from Business Green