Since the advent of the electricity grid, most grids have been built using alternating current (AC) transmission systems.
Today, however, driven by growth in electricity demand, transmission system congestion, and grid instability, adoption of high voltage direct current (HVDC) transmission is growing on a worldwide basis. Interest in innovative voltage-source converters (VSCs) has taken off, and demand for this technology is expected to grow.
According to a new report from Navigant Research, cumulative revenue from HVDC converters will total $56.6 billion between 2013 and 2020.
“While AC transmission still leads the industry overall, VSCs have removed doubts concerning the limited capability of classic HVDC transmission,” says Kristoffer Torvik, senior research analyst with Navigant Research. “HVDC allows interconnection of regional systems that operate asynchronously, which mitigates many instability issues that otherwise would cause outages in AC transmission.”
According to the report, approximately 333 gigawatts (GW) of new HVDC transmission capacity will be added between 2013 and 2020. For comparison, peak demand in the United States is estimated to be approximately 800 GW in 2013. In China alone, nearly 200 GW of new HVDC transmission capacity is planned for build-out over the next 8 years. Energy from hydroelectric generation in distant inland locations will be tapped and transported to power big cities along the eastern and southern coast.
The report, “High-Voltage Direct Current Transmission Systems”, analyzes the global market for HVDC technologies. The study provides an analysis of the market issues, including trends, drivers, challenges, opportunities, and regulatory factors, related to HVDC systems. An inventory of HVDC lines in construction or planned is used as a basis for the global capacity and revenue forecasts, which are segmented by converter type and region and extend through 2020. The report also examines the key technologies and roadmaps associated with HVDC systems, as well as the competitive landscape.