United Kingdom HVDC Transmission Market
The United Kingdom HVDC (High Voltage Direct Current) transmission market is witnessing significant growth, driven by the country’s ambitious renewable energy targets, the need for efficient long-distance power transmission, and the integration of offshore wind energy. The UK has set ambitious goals to achieve net-zero carbon emissions by 2050 and significantly increase the share of renewable energy in its energy mix. HVDC technology is essential in this transition, providing a reliable and efficient means of transmitting electricity over long distances and integrating renewable energy sources into the grid.
One of the primary drivers of the HVDC transmission market in the UK is the country’s commitment to increasing the share of renewable energy. The UK has significant offshore wind energy potential, and the government has set ambitious targets to increase offshore wind capacity to 40 GW by 2030. HVDC technology plays a crucial role in connecting offshore wind farms to the mainland grid, providing efficient and low-loss transmission over long distances. Projects like the Eastern Link and the Western Link demonstrate the potential of HVDC to support the UK’s renewable energy ambitions.
The integration of renewable energy sources is another significant factor driving the growth of the HVDC transmission market in the UK. As the share of variable renewable energy sources, such as wind and solar, increases, maintaining grid stability becomes more challenging. HVDC systems can provide essential grid support services, such as frequency regulation and reactive power compensation, thereby enhancing grid stability. The use of HVDC technology in projects like the North Sea Link and the ElecLink interconnector highlights its importance in maintaining grid stability in a renewable energy-dominated future.
The need for efficient long-distance power transmission is also a major driver of the HVDC transmission market in the UK. The country’s electricity grid is undergoing significant changes, with increasing demand for electricity and the need to connect remote renewable energy sources to population centers. HVDC technology offers a solution by providing low-loss transmission over long distances, ensuring that electricity can be delivered to where it is needed most. Projects like the IFA2 interconnector and the NSN Link demonstrate the potential of HVDC to enhance the efficiency and reliability of the UK’s electricity grid.
Government policies and regulatory support play a crucial role in shaping the HVDC transmission market in the UK. The UK government has implemented various policies and incentives to promote the development and deployment of HVDC technology. The Contracts for Difference (CfD) scheme and the Offshore Transmission Network Review (OTNR) provide a strong policy framework supporting the development of HVDC projects. Additionally, the Office of Gas and Electricity Markets (Ofgem) oversees the planning and approval process for HVDC projects, ensuring that they align with national energy goals.
Despite the numerous advantages of HVDC technology, the market in the UK faces some challenges. High initial costs and complex regulatory processes can be barriers to widespread adoption. The deployment of HVDC technology requires significant investment in infrastructure and advanced technology. Additionally, coordinating cross-border projects involves navigating different regulatory frameworks and obtaining approvals from multiple countries. However, the long-term benefits of HVDC, including reduced transmission losses and enhanced grid stability, make it a worthwhile investment.
The HVDC Transmission Market is estimated to be worth USD 22 Billion by 2032, registering an 7.45% CAGR during the forecast period (2024- 2032).
High Voltage Direct Current (HVDC) is applied in long-distance transmission. HVDC power transmission systems utilize DC for electricity transmission. Due to the DC (DC), HVDC systems asynchronously connect power grids therein particular areas which eliminate numerous outage-causing issues. High voltage DC (HVDC) transmission systems are comparatively less costly for long-distance electricity transmission and produce lower electrical losses.
HVDC systems facilitate the transmission of power generated from solar panels and wind plants at long distances. The designing and developing processes of the HVDC transmission system rely on three components, the converter station at the transmission and receiving ends, the transmission medium, and the electrodes.
HVDC transmission is more affordable for considerable distance power transmission and generates lower electrical misfortunes responsible for the growth of the HVDC transmission market in the coming future. The other factor pushing the growth of the HVDC Transmission Market is the boosting demand for cable-based transmission as opposed to transmission via overhead lines. Increasing demand for VSC (Voltage Source Converter) based high voltage direct current (VSC-HVDC) transmission systems that provide total flow control in both directions, stop fault propagation, and lower network losses are estimated to push the market.
The HVDC Transmission Market report provides an integrated evaluation of the market. The report provides a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that play a significant role in the market.
Regional Analysis
The HVDC Transmission Market is divided into five regions; North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.
The HVDC Transmission Market in APAC is witnessing exponential growth in power consumption. The event of power infrastructure during this region tenders many growth opportunities for market players. These factors are estimated to fuel the HVDC Transmission Market in APAC within the coming years.
The HVDC transmission systems market in North America is projected to grow during the forecast period, due to plans to develop the offshore wind farm sector, cheap long-distance transmission costs, controllability, and low short circuit current. Due to the amplification of renewable power generation and offshore wind installations, the United States obtained the greatest market share in North America over the projection period.
Market Segmentation
The HVDC Transmission Market is segmented into the following types;
By Component
- Products
- AC & DC Harmonic Filters
- Converters
- DC Lines
- Circuit Breakers
- Others
- Services
- Repairs & Maintenance
- Engineering & Consulting
By Technology
- Line Commutated Converters (LCC)
- Voltage Source Converters (VSC)
- Others
By Application
- Energy Transmission & Distribution
- Distributed Energy Resources (DER)
- Renewable Energy
By Deployment
- Overhead
- Underground
- Subsea
- Combination
By Power Rating
- Below 1000 MW
- 1001 - 2000 MW
- Above 2000 MW
Key Players
The HVDC Transmission Market’s prominent key players are Siemens (Germany), Toshiba Corporation (Japan), ABB Group (Switzerland), Schneider Electric (France), Adani (India), Hitachi Energy (Japan), General Electric Co. (US), Mitsubishi Electric Corporation (Tokyo), Alstom (France), NKT A/S (Copenhagen), Nexans (France).
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