The market for India HVDC transmission systems market is expected to grow at a CAGR of approximately 6.2% during the forecast period of 2020 - 2025. Major factors driving the market include the growing renewable energy sector, rapid urbanization, and increasing rural electrification. On the other hand, the growing distributed and remote power systems in the country is likely to hinder the market growth.
- The HVDC overhead transmission system is likely to maintain its significantly larger market share in the India HVDC market, during the forecast period. The Indian electricity sector has witnessed tremendous growth in its energy demand, generation capacity, transmission, and distribution networks.
- The nation's electricity demand has been increasing in parallel with rapid urbanization and increasing the purchasing power of the nation. In addition to this, rural electrification is presenting itself as a market opportunity, with increasing demand for a reliable power supply.
- HVDC transmission technology is at the forefront of the emerging "smart grid" revolution. It has emerged as an economically-viable solution for bulk and long-distance power transmission, due to its cutting-edge features, over HVAC, such as long-distance transmission, asynchronous transmission, ease in controlling the active power link, the possibility of bulk power transmission, and low loss (typically 30-50% less transmission loss than comparable alternating current overhead lines) in transmission of power.
Key Market Trends
HVDC Overhead Transmission System to Dominate the Market
- HVDC overhead transmission systems have a simpler requirement of line tower construction, in comparison to HVAC transmission lines. Also, HVDC overhead transmission systems lower per-unit costs, including cost per km of line and per MW of transmitted power.
- High-voltage overhead transmission is a popular means of power transmission in a majority part of the world. DC decreases the total cost for long-distance power transmission with overhead lines and/or cables. Moreover, the high-voltage overhead transmission is much less expensive to build and much quicker to repair than underground transmission. However, it has seen decreasing application in densely-populated urban and commercial areas.
- The overhead HVDC transmission infrastructure can transport more power in comparison with the HVAC system. In October 2019, the Union government of India had planned to explore the option of an overhead electricity link with Sri Lanka as a part of India's strategy to create a new-energy ecosystem for the neighborhood against the backdrop of China's ambitious Belt and Road Initiative.
- As per sources in Apr 2020, India to build longest 800 kV UHVDC transmission line. India's Powergrid has teamed up with ABB in a mega project worth more than USD 640 million. ABB is likely to deliver the transmission link that has the capacity to bring reliable electricity for more than 80 million people. The Raigarh-Pugalur 800 kV ultra-high-voltage direct current (UHVDC) system will connect Raigarh in Central India to Pugalur in the southern state of Tamil Nadu.
- Therefore, based on above-mentioned factors, HVDC overhead transmission systems is likely to dominate the market in India during the forecast period.
Growing Renewable Energy Sector to Drive the Market Demand
- India has the third largest power generation capacity in the world. The electricity sector in India is growing at rapid pace. The installed capacity was registered to be 367 GW as on 30th December 2019, with generation mix being; thermal (63%), hydro (12%), nuclear (2%), and renewables (23%).
- Development of renewable energy is a trend in the current scenario. Most of the renewable installed capacity is located far away from the load centers. HVDC is essential for remote projects, as cable lengths of approximately 80 km or more usually require HVDC transmission technology.
- As the HVDC lines are better suited for long-distance power transmission, power transmission companies are increasingly using HVDC over HVAC transmission lines, in order to integrate the renewable power capacity.
- The cost of renewable power generation is continuously declining. The economics of renewables have improved dramatically with both wind and solar costs going down by 50%, in just two years. The major reasons behind the falling generation costs are innovations in manufacturing and installation of PV power generation, improvement in wind turbine materials and designs, intense competition, and economies of scale. Due to lower costs, the renewable energy sector is becoming competitive and, in some cases, cheaper than conventional power plants.
- The demand for reliable power supply, the distance between energy demand center and power generation center, along with growing renewable energy generation capability of the nation, will drive the market demand for HVDC transmission systems during the coming years.
The India HVDC transmission systems market is moderately consolidated. Some of the major companies include ABB Ltd., Siemens AG, General Electric Company, Toshiba Corp, and Bharat Heavy Electricals Limited.
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