high-voltage direct current (hvdc) converter stations ... · pdf filehigh-voltage direct...

HIGH-VOLTAGE DIRECT CURRENT (HVDC) CONVERTER STATIONS - GLOBAL MARKET SIZE,

AVERAGE PRICING AND EQUIPMENT MARKET SHARE TO 2020

REFERENCE CODE GDPE1058MAR | PUBLICATION DATE SEPTEMBER 2013

High-Voltage Direct Current (HVDC) Converter Stations - Global Market Size, Average Pricing and Equipment Market Share to 2020 2 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.



Executive Summary

Global HVDC Converter Station Market Expected to Experience Substantial Growth

With the rising demand for electricity in Asia-Pacific

countries and other developing nations, the need

to transmit electricity over long distances with

fewer transmission losses has increased. The

share of clean power from hydropower, wind and

other renewable energy sources in the global

energy mix is expected to increase, although

power plants producing these sorts of energy are

expected to be far away from urban areas. High

Voltage Direct Current (HVDC) transmission is

expected to be used to transmit clean electricity

generated from renewable power plants to urban

areas, and hence the increasing requirements,

along with investments in HVDC transmission, are

expected to drive the HVDC market. The market

revenue of the global HVDC converter station

market increased from $XX billion in 2006 to $XX

billion in 2012.

Most countries worldwide have established targets

to increase the percentage contribution of

renewable energy sources in their generation mix.

As a result, significant numbers of hydropower

plants, solar photovoltaic, and onshore and

offshore wind plants are expected to come online

in the coming years. Among these, hydropower

and offshore wind power plants are expected to

show particularly impressive growth over the

forecast period.

These plants are expected to be built far away

from load centers and require transmission

networks to transmit the power to the load centers.

This is expected to benefit the HVDC converter

station market, as these units are used to transmit

the power from power-generating sources to load

centers.

The global HVDC converter station market is also

expected to benefit from the increasing number of

cross-border interconnections in the Europe, Asia-

Pacific and Middle-East regions over the forecast

period. Concerns over electricity security and

reliability, as well as rising electricity prices, are

promoting electricity trade between the countries in

these regions. In Europe, many of the existing

transmission lines have reached the maximum

transmission capacities they were designed for.

Many new interconnections are planned between

the UK, Germany, Poland, France and Sweden,

among others, to enable electricity trading.

Similarly, in the Middle-East the Gulf Corporation

Council Interconnection project aims to establish

HVDC interconnection between Saudi Arabia and

its neighboring Gulf countries, which is expected to

drive the global HVDC converter station market.

Driven by these factors, the market is expected to

increase to $XX billion over the forecast period of

2013 to 2020.




Executive Summary

HVDC Converter Station Market, Global, Market Size ($bn), 2006–2020

2006–2012 2013–2020

Mar

ket s

ize

($bn

)

Source: GlobalData, Power eTrack [Accessed on July 20, 2013]

China: Key Market for HVDC Converter Stations

China is the biggest market for HVDC substations

and accounted for a share of XX% of the global

market in 2012. Power plants in China are located

close to the sources of fuel – hydropower and

others – and are far away from the load centers.

This means that the power has to be transmitted

over long distances, leading to a growing need for

stable HVDC infrastructure.

There are a significant number of power generation

and infrastructure projects planned during the

forecast period in China, which will translate into

demand for HVDC converter stations. For

example, many new large-scale hydropower plants

are expected to come online in the southwestern

region, where hydropower resources are abundant,

and these would need to be connected to load

centers such as Shenzhen and Guangzhou. This

gives rise to opportunities for HVDC projects. Over

the 2013–2020 period, the cumulative revenues

from the Chinese HVDC converter station market

are expected to reach $XX billion.

HVDC Converter Station Market, China, Market Share (%), 2012

ChinaGlobal

2012

Source: GlobalData, Power eTrack [Accessed on July 3, 2013]




Table of Contents

1 Table of Contents

1 Table of Contents .......................................................................................................................... 5

1.1 List of Tables ........................................................................................................................ 11

1.2 List of Figures ....................................................................................................................... 14

2 Introduction ................................................................................................................................. 17

2.1 HVDC Converter Station, Overview ...................................................................................... 17

2.2 GlobalData Report Guidance ................................................................................................ 20

3 Global HVDC Converter Station Market Analysis ........................................................................ 21

3.1 HVDC Converter Station Market, Global, Overview .............................................................. 21

3.2 HVDC Converter Station Market, Global, Drivers and Impact Analysis, 2013–2020 ............. 22

3.3 HVDC Converter Station Market, Global, Restraints and Impact Analysis, 2013–2020 ......... 27

3.4 HVDC Converter Station Market, Global, Revenue Analysis, 2006–2020 ............................. 30

3.5 HVDC Converter Station Market, Global, Annual Capacity Addition, 2006–2020 .................. 34

3.6 HVDC Converter Station Market, Global, Price Analysis, 2012 ............................................. 37

3.7 HVDC Converter Station Market, Global, Market Share Analysis, 2006–2012 ...................... 39

4 Global HVDC Converter Station Market, Key Country Analysis ................................................... 41

4.1 HVDC Converter Station Market Analysis, China, 2006–2020 .............................................. 41

4.1.1 HVDC Converter Station Market, China, Overview ......................................................... 41

4.1.2 HVDC Converter Station Market, China, Total Transmission Line Length, 2006–2020 ... 41

4.1.3 HVDC Converter Station Market, China, Major Contracts ............................................... 45

4.1.4 HVDC Converter Station Market, China, Revenue Analysis, 2006–2020 ........................ 46

4.1.5 HVDC Converter Station Market, China, Annual Capacity Addition, 2006–2020 ............. 49




Table of Contents

4.1.6 HVDC Converter Station Market, China, Annual Volume, 2006–2020 ............................ 51

4.1.7 HVDC Converter Station Market, China, Average Price, (2006–2020) ............................ 53

4.1.8 HVDC Converter Station Market, China, Market Share Analysis by Revenues, 2012 ..... 55

4.2 HVDC Converter Station Market Analysis, Brazil, 2006–2020 .............................................. 57

4.2.1 HVDC Converter Station Market, Brazil, Overview .......................................................... 57

4.2.2 HVDC Converter Station Market, Brazil, Total Transmission Line Length, 2006–2020 ... 58

4.2.3 HVDC Converter Station Market, Brazil, Major Contracts ............................................... 61

4.2.4 HVDC Converter Station Market, Brazil, Revenue Analysis, 2006–2020 ........................ 62

4.2.5 HVDC Converter Station Market, Brazil, Annual Capacity Addition, 2006–2020 ............. 64

4.2.6 HVDC Converter Station Market, Brazil, Annual Volume, 2006-2020 .............................. 66

4.2.7 HVDC Converter Station Market, Brazil, Average Price, 2006-2020 ............................... 68

4.2.8 HVDC Converter Station Market, Brazil, Market Share Analysis by Revenues, (%), 2012

....................................................................................................................................... 70

4.3 HVDC Converter Station Market Analysis, India, 2006-2020 ................................................ 71

4.3.1 HVDC Converter Station Market, India, Overview ........................................................... 71

4.3.2 HVDC Converter Station Market, India, Total Transmission Line Length (Ckm), 2006-

2020 ............................................................................................................................... 72

4.3.3 HVDC Converter Station Market, India, Major Contracts................................................. 75

4.3.4 HVDC Converter Station Market, India, Revenue Analysis, 2006–2020 .......................... 76

4.3.5 HVDC Converter Station Market, India, Annual Capacity Addition, 2006–2020 .............. 78

4.3.6 HVDC Converter Station Market, India, Annual Volume, 2006–2020 .............................. 82

4.3.7 HVDC Converter Station Market, India, Average Price, 2006–2020 ................................ 84

4.3.8 HVDC Converter Station Market, India, Market Share Analysis by Revenues, 2012 ....... 86




Table of Contents

4.4 HVDC Converter Station Market Analysis, UK, 2006–2020 .................................................. 87

4.4.1 HVDC Converter Station Market, UK, Overview ............................................................. 87

4.4.2 HVDC Converter Station Market, UK, Total Transmission Line Length, 2006–2020 ....... 88

4.4.3 HVDC Converter Station Market, UK, Major Contracts ................................................... 90

4.4.4 HVDC Converter Station Market, UK, Revenue Analysis, 2006–2020 ............................ 91

4.4.5 HVDC Converter Station Market, UK, Annual Capacity Addition, 2006–2020 ................. 94

4.4.6 HVDC Converter Station Market, UK, Annual Volume, 2006–2020 ................................. 97

4.4.7 HVDC Converter Station Market, UK, Average Price, 2006–2020 .................................. 98

4.4.8 HVDC Converter Station Market, UK, Market Share Analysis by Revenues, 2012 ........ 100

4.5 HVDC Converter Station Market Analysis, Sweden, 2006–2020 ........................................ 101

4.5.1 HVDC Converter Station Market, Sweden, Overview .................................................... 101

4.5.2 HVDC Converter Station Market, Sweden, Total Transmission Line Length, 2006–2020

..................................................................................................................................... 103

4.5.3 HVDC Converter Station Market, Sweden, Major Contracts ......................................... 105

4.5.4 HVDC Converter Station Market, Sweden, Revenue Analysis, 2006–2020................... 106

4.5.5 HVDC Converter Station Market, Sweden, Annual Capacity Addition, 2006–2020 ....... 109

4.5.6 HVDC Converter Station Market, Sweden, Annual Volume, 2006–2020 ....................... 111

4.5.7 HVDC Converter Station Market, Sweden, Average Price, 2006–2020 ......................... 113

4.5.8 HVDC Converter Station Market, Sweden, Market Share Analysis by Revenues, 2012 115

4.6 HVDC Converter Station Market Analysis, Norway, 2006–2020 ......................................... 117

4.6.1 HVDC Converter Station Market, Norway, Overview .................................................... 117

4.6.2 HVDC Converter Station Market, Norway, Total Transmission Line Length, 2006–2020

..................................................................................................................................... 118




Table of Contents

4.6.3 HVDC Converter Station Market, Norway, Major Contracts .......................................... 120

4.6.4 HVDC Converter Station Market, Norway, Revenue Analysis, 2006–2020 ................... 121

4.6.5 HVDC Converter Station Market, Norway, Annual Capacity Addition, 2006–2020 ........ 124

4.6.6 HVDC Converter Station Market, Norway, Annual Volume, 2006–2020 ........................ 126

4.6.7 HVDC Converter Station Market, Norway, Average Price, 2006–2020 ......................... 128

4.6.8 HVDC Converter Station Market, Norway, Market Share Analysis by Revenues, 2011. 130

4.7 HVDC Converter Station Market Analysis, Germany, 2006–2020 ....................................... 131

4.7.1 HVDC Converter Station Market, Germany, Overview .................................................. 131

4.7.2 HVDC Converter Station Market, Germany, Total Transmission Line Length, 2006–2020

..................................................................................................................................... 132

4.7.3 HVDC Converter Station Market, Germany, Major Contracts ........................................ 134

4.7.4 HVDC Converter Station Market, Germany, Revenue Analysis, 2006–2020 ................. 135

4.7.5 HVDC Converter Station Market, Germany, Annual Capacity Addition, 2006–2020 ...... 137

4.7.6 HVDC Converter Station Markets, Germany, Annual Volume, 2006–2020 ................... 139

4.7.7 HVDC Converter Station Market, Germany, Average Price, 2006–2020 ....................... 141

4.7.8 HVDC Converter Station Market, Germany, Market Share Analysis by Revenues, 2012

..................................................................................................................................... 144

4.8 HVDC Converter Station, US, Market Analysis ................................................................... 145

4.8.1 HVDC Converter Station Market, US, Overview ........................................................... 145

4.8.2 HVDC Converter Station Market, US, Total Transmission Line Length, 2006–2020 ..... 146

4.8.3 HVDC Converter Station Market, US, Major Contracts ................................................. 148

4.8.4 HVDC Converter Station Market, US, Revenue Analysis, 2006–2020 .......................... 149

4.8.5 HVDC Converter Station Market, US, Annual Capacity Addition, 2006–2020 ............... 151




Table of Contents

4.8.6 HVDC Converter Station Market, US, Annual Volume, 2006–2020 ............................... 153

4.8.7 HVDC Converter Station Market, US, Average Price, 2006–2020 ................................ 155

4.8.8 HVDC Converter Station Market, US, Market Share Analysis, 2012 ............................. 157

5 Appendix ................................................................................................................................... 159

5.1 Definitions .......................................................................................................................... 159

5.1.1 HVDC Converter Station ............................................................................................... 159

5.1.2 HVDC Transmission System ........................................................................................ 159

5.1.3 Power ........................................................................................................................... 159

5.1.4 Installed Capacity ......................................................................................................... 159

5.1.5 Electricity Generation .................................................................................................... 159

5.1.6 Net Electricity Consumption .......................................................................................... 159

5.1.7 Thermal Power Plant .................................................................................................... 159

5.1.8 Hydropower Plant ......................................................................................................... 160

5.1.9 Nuclear Power .............................................................................................................. 160

5.1.10 Renewable Energy Resources...................................................................................... 160

5.1.11 Electricity Consumption ................................................................................................ 160

5.1.12 Market Size................................................................................................................... 160

5.2 Abbreviations...................................................................................................................... 161

5.3 Bibliography........................................................................................................................ 162

5.4 Coverage ............................................................................................................................ 164

5.5 Methodology ....................................................................................................................... 164

5.5.1 Secondary Research .................................................................................................... 165

5.5.2 Primary Research ......................................................................................................... 165




Table of Contents

5.5.3 Definitions, Market Estimates and Assumptions ........................................................... 166

5.6 Disclaimer .......................................................................................................................... 166




Table of Contents

1.1 List of Tables

Table 1: HVDC Converter Station Market, Global, Annual Revenue ($bn), 2006–2020 ............................. 33

Table 2: HVDC Converter Station Market, Global, Annual Capacity Addition (GW), 2006–2020 ................ 36

Table 3: HVDC Converter Station Market, Global, Price Analysis ($/kW), 2012 ........................................ 38

Table 4: HVDC Converter Station Market, Global, Market Share (%), 2006–2012..................................... 39

Table 5: HVDC Converter Station Market, China, Transmission Line Length (Thousand Ckm), 2006–2020

.................................................................................................................................................. 44

Table 6: HVDC Converter Station Market, China, Annual Revenue ($bn), 2006–2020 .............................. 48

Table 7: HVDC Converter Station Market, China, Annual Capacity Addition (GW), 2006–2020 ................. 51

Table 8: HVDC Converter Station Market, China, Annual Volume (Units), 2006–2020 .............................. 53

Table 9: HVDC Converter Station Market, China, Average Price ($/kW), 2006–2020 ................................ 55

Table 10: HVDC Converter Station Market, China, Market Share (%), 2012 ............................................... 56

Table 11: HVDC Converter Station Market, Brazil, Transmission Line Length (Ckm), 2006–2020 ............... 61

Table 12: HVDC Converter Station Market, Brazil, Annual Revenue ($m), 2006–2020 ............................... 64

Table 13: HVDC Converter Station Market, Brazil, Annual Capacity Addition (GW), 2006–2020 ................. 66

Table 14: HVDC Converter Station Market, Brazil, Annual Volume (Units), 2006–2020 .............................. 68

Table 15: HVDC Converter Station Market, Brazil, Average Price ($/kW), 2006–2020 ................................ 70

Table 16: HVDC Converter Station Market, India, 12th Five-Year Plan Targets (2012–2017) ...................... 72

Table 17: HVDC Converter Station Market, India, Transmission Line Length (Thousand Ckm), 2006–2020 74

Table 18: HVDC Converter Station Market, India, Annual Revenue ($m), 2006–2020 ................................ 78

Table 19: HVDC Converter Station Market, India, Annual Capacity Addition (GW), 2006–2020 .................. 81

Table 20: HVDC Converter Station Market, India, Annual Volume (Units), 2006–2020................................ 83

Table 21: HVDC Converter Station Market, India, Average Price ($/kW), 2006–2020 ................................. 85

Table 22: HVDC Converter Station Market, India, Market Share (%), 2012 ................................................. 86

Table 23: HVDC Converter Station Market, UK, Transmission Line Length (Thousand Ckm), 2006–2020 .. 90




Table of Contents

Table 24: HVDC Converter Station Market, the UK, Annual Revenue ($m), 2006–2020 ............................. 94

Table 25: HVDC Converter Station Market, UK, Annual Capacity Addition (GW), 2006–2020 ..................... 96

Table 26: HVDC Converter Station Market, UK, Annual Volume (Units), 2006–2020 .................................. 98

Table 27: HVDC Converter Station Market, UK, Average Price ($/kW), 2006–2020 .................................. 100

Table 28: HVDC Converter Station Market, UK, Market Share (%), 2012 ................................................. 101

Table 29: HVDC Converter Station Market, Sweden, Transmission Line Length (Ckm), 2006–2020 ......... 105

Table 30: HVDC Converter Station Market, Sweden, Annual Revenue ($m), 2006–2020 ......................... 108

Table 31: HVDC Converter Station Market, Sweden, Annual Capacity Addition (GW), 2006–2020 ........... 111

Table 32: HVDC Converter Station Market, Sweden, Annual Volume (Units), 2006–2020 ........................ 113

Table 33: HVDC Converter Station Market, Sweden, Average Price ($/kW), 2006–2020 .......................... 115

Table 34: HVDC Converter Station Market, Sweden, Market Share (%), 2012 .......................................... 117

Table 35: HVDC Converter Station Market, Norway, Transmission Line Length (Ckm), 2006–2020 .......... 120

Table 36: HVDC Converter Station Market, Norway, Annual Revenue ($m), 2006–2020 .......................... 123

Table 37: HVDC Converter Station Market, Norway, Annual Capacity Addition (MW), 2006–2020 ............ 126

Table 38: HVDC Converter Station Market, Norway, Annual Volume (Units), 2006–2020 ......................... 128

Table 39: HVDC Converter Station Market, Norway, Average Price ($/kW), 2006–2020 ........................... 130

Table 40: HVDC Converter Station Market, Norway, Market Share (%), 2011 .......................................... 131

Table 41: HVDC Converter Station Market, Germany, Transmission Line Length (Ckm), 2006–2020 ....... 134

Table 42: HVDC Converter Station Market, Germany, Annual Revenue ($m), 2006–2020 ........................ 137

Table 43: HVDC Converter Station Market, Germany, Annual Capacity Addition (MW), 2006–2020 ......... 139

Table 44: HVDC Converter Station Market, Germany, Annual Volume (Units), 2006–2020 ....................... 141

Table 45: HVDC Converter Station Market, Germany, Average Price ($/kW), 2006–2020 ........................ 143

Table 46: HVDC Converter Station Market, Germany, Market Share (%), 2012 ........................................ 144

Table 47: HVDC Converter Station Market, US, Transmission Line Length (Thousand Ckm), 2006–2020 148




Table of Contents

Table 48: HVDC Converter Station Market, US, Annual Revenue ($m), 2006–2020 ................................. 151

Table 49: HVDC Converter Station Market, US, Annual Capacity Addition (GW), 2006–2020 ................... 153

Table 50: HVDC Converter Station Market, US, Annual Volume (Units), 2006–2020 ................................ 155

Table 51: HVDC Converter Station Market, US, Average Price ($/kW), 2006–2020 .................................. 157

Table 52: HVDC Converter Station Market, US, Market Share (%), 2012 ................................................. 158

Table 53: List of Abbreviations ................................................................................................................. 161




Table of Contents

1.2 List of Figures

Figure 1: Schematic Diagram of HVDC Transmission System ................................................................... 18

Figure 2: Pictorial Representation of HVDC Back-to-Back Connection ....................................................... 19

Figure 3: HVDC Converter Station Market, Global, Drivers and Impact Analysis, 2013–2020 ..................... 22

Figure 4: HVDC Converter Station Market, Global, Restraints and Impact Analysis, 2013–2020 ................ 27

Figure 5: HVDC Converter Station Market, Global, AC Transmission vs. DC Transmission Price

Comparison................................................................................................................................ 29

Figure 6: HVDC Converter Station Market, Global, Annual Revenue ($bn), 2006–2020 ............................. 32

Figure 7: HVDC Converter Station Market, Global, Annual Capacity Addition (GW), 2006–2020 ................ 35

Figure 8: HVDC Converter Station Market, Global, Price Analysis ($/kW), 2012 ........................................ 38

Figure 9: HVDC Converter Station Market, Global, Market Share (%), 2012 .............................................. 40

Figure 10: HVDC Converter Station Market, China, Transmission Line Length (Thousand Ckm), 2006–2020

.................................................................................................................................................. 43

Figure 11: HVDC Converter Station Market, China, Annual Revenue ($bn), 2006–2020 .............................. 47

Figure 12: HVDC Converter Station Market, China, Annual Capacity Addition (GW), 2006–2020 ................. 50

Figure 13: HVDC Converter Station Market, China, Annual Volume (Units), 2006–2020 .............................. 52

Figure 14: HVDC Converter Station Market, China, Average Price ($/kW), 2006–2020 ................................ 54

Figure 15: HVDC Converter Station Market, China, Market Share (%), 2012 ............................................... 56

Figure 16: HVDC Converter Station Market, Brazil, Installed Capacity (%), 2012 and 2020 ......................... 58

Figure 17: HVDC Converter Station Market, Brazil, Transmission Line Length (Ckm), 2006–2020 ............... 60

Figure 18: HVDC Converter Station Market, Brazil, Annual Revenue ($m), 2006–2020 ............................... 63

Figure 19: HVDC Converter Station Market, Brazil, Annual Capacity Addition (GW), 2006–2020 ................. 65

Figure 20: HVDC Converter Station Market, Brazil, Annual Volume (Units), 2006–2020 .............................. 67

Figure 21: HVDC Converter Station Market, Brazil, Average Price ($/kW), 2006–2020 ................................ 69

Figure 22: HVDC Converter Station Market, India, Transmission Line Length (Thousand Ckm), 2006–2020 73




Table of Contents

Figure 23: HVDC Converter Station Market, India, Annual Revenue ($m), 2006–2020 ................................ 77

Figure 24: HVDC Converter Station Market, India, Annual Capacity Addition (GW), 2006–2020 .................. 80

Figure 25: HVDC Converter Station Market, India, Annual Volume (Units), 2006–2020................................ 82

Figure 26: HVDC Converter Station Market, India, Average Price ($/kW), 2006–2020 ................................. 84

Figure 27: HVDC Converter Station Market, UK, Transmission Line Length (Thousand Ckm), 2006–2020 .. 89

Figure 28: HVDC Converter Station Market, UK, Offshore Round 3 Zones .................................................. 92

Figure 29: HVDC Converter Station Market, UK, Annual Revenue ($m), 2006–2020 ................................... 93

Figure 30: HVDC Converter Station Market, UK, Annual Capacity Addition (GW), 2006–2020 ..................... 95

Figure 31: HVDC Converter Station Market, UK, Annual Volume (Units), 2006–2020 .................................. 97

Figure 32: HVDC Converter Station Market, UK, Average Price ($/kW), 2006–2020 .................................... 99

Figure 33: HVDC Converter Station Market, Sweden, Power Generation Capacity (%), 2012 and 2020 ..... 102

Figure 34: HVDC Converter Station Market, Sweden, Transmission Line Length (Ckm), 2006–2020 ......... 104

Figure 35: HVDC Converter Station Market, Sweden, Annual Revenue ($m), 2006–2020 ......................... 107

Figure 36: HVDC Converter Station Market, Sweden, Annual Capacity Addition (GW), 2006–2020 ........... 110

Figure 37: HVDC Converter Station Market, Sweden, Annual Volume (Units), 2006–2020 ........................ 112

Figure 38: HVDC Converter Station Market, Sweden, Average Price ($/kW), 2006–2020 .......................... 114

Figure 39: HVDC Converter Station Market, Sweden, Market Share (%), 2012 .......................................... 116

Figure 40: HVDC Converter Station Market, Norway, Transmission Line Length (Ckm), 2006–2020 .......... 119

Figure 41: HVDC Converter Station Market, Norway, Annual Revenue ($m), 2006–2020 .......................... 122

Figure 42: HVDC Converter Station Market, Norway, Annual Capacity Addition (MW), 2006–2020 ............ 125

Figure 43: HVDC Converter Station Market, Norway, Annual Volume (Units), 2006–2020 ......................... 127

Figure 44: HVDC Converter Station Market, Norway, Average Price ($/kW), 2006–2020 ........................... 129

Figure 45: HVDC Converter Station Market, Germany, Power Generation Capacity (%), 2012 and 2020 ... 132

Figure 46: HVDC Converter Station Market, Germany, Transmission Line Length (Ckm), 2006–2020 ....... 133




Table of Contents

Figure 47: HVDC Converter Station Market, Germany, Annual Revenue ($m), 2006–2020 ........................ 136

Figure 48: HVDC Converter Station Market, Germany, Annual Capacity Addition (MW), 2006–2020 ......... 138

Figure 49: HVDC Converter Station Market, Germany, Annual Volume (Units), 2006–2020 ....................... 140

Figure 50: HVDC Converter Station Market, Germany, Average Price ($/kW), 2006–2020 ........................ 142

Figure 51: HVDC Converter Station Market, Germany, Market Share (%), 2012 ........................................ 144

Figure 52: HVDC Converter Station Market, US, Transmission Line Length (Thousand Ckm), 2006–2020 147

Figure 53: HVDC Converter Station Market, US, Annual Revenue ($m), 2006–2020 ................................. 150

Figure 54: HVDC Converter Station Market, US, Annual Capacity Addition (GW), 2006–2020 ................... 152

Figure 55: HVDC Converter Station Market, US, Annual Volume (Units), 2006–2020 ................................ 154

Figure 56: HVDC Converter Station Market, US, Average Price ($/kW), 2006–2020 .................................. 156

Figure 57: HVDC Converter Station Market, US, Market Share (%), 2012 ................................................. 158




Introduction

2 Introduction

2.1 HVDC Converter Station, Overview

With the increasing focus on renewable energy generation across the globe, large numbers of

hydropower and offshore wind power plants are expected to come online in the coming years. The

power generated at these sites will need to be transmitted over long distances, usually hundreds of

kilometers, to the load centers, where there is high demand for electricity. Because the offshore

wind farms and grids are Alternating Current (AC) systems, High Voltage Alternative Current

(HVAC) transmission systems were considered to be the best solution for power transmission.

However, HVAC are only capable of transmitting power without major Transmission and

Distribution (T&D) losses over between XX and XX kilometers (km). Beyond this significant T&D

losses are observed, due to the large amount of reactive power generated by the AC cables. High

Voltage Direct Current (HVDC) transmission systems, which have the capability to transmit power

over long distances with minimum T&D losses, are therefore being deployed widely for power

transmission from remotely located hydropower and offshore wind plants to urban areas.

An HVDC transmission link consists primarily of a converter station, in which the AC voltage of the

conventional power grid is converted into Direct Current (DC) voltage, a transmission line, and

another converter station at the other end, where the voltage is converted back into AC. Electricity

can be transported in both directions. The lines can go across land as overhead or underground

lines, can be installed under water as submarine cables, or a combination of these as required.

Transmission losses are lower for AC voltage than DC voltage, where the losses can amount to

several hundred thousand volts. The higher the voltage, the lower the transmission losses are, and

the more electricity can be transmitted via the line.




Introduction

2.2 GlobalData Report Guidance

This report discusses the global HVDC converter station market. The layout of the report is as

follows:

The report begins with an executive summary, which details the key findings of the report.

Chapter two provides an introduction to the report, with an overview on the HVDC converter

station technology.

Chapter three provides an analysis of the global market for HVDC converter stations, which

includes revenue, capacity and average price forecasts for the period 2006 to 2020, impact

analysis of key drivers and restraints, and the market share of key players in the HVDC

converter station market.

Chapter four provides market analysis for key countries, which includes a revenue, capacity

and average price forecast during 2006 to 2020. Additionally, the key projects deployed in the

key countries are also discussed. The key countries include China, Brazil, India, Norway,

Sweden, the UK, Germany and the US.

Please note: The scope of the market analysis data provided in the report for global and key

countries is limited to HVDC converter stations. Market revenues have been rounded off

throughout the report which may result in some minor discrepancies caused by rounding-off errors




Global HVDC Converter Station Market Analysis

3.6 HVDC Converter Station Market, Global, Price Analysis, 2012

The price of an HVDC converter station depends on various parameters, including the power

capacity to be transmitted, environmental conditions, the regulatory environment, safety

requirements, and whether the substation will be offshore or onshore. The variety of filters and

transformers used in the station can also have an effect on the end price. Aside from this, the cost

of engineering, erection commissioning, and civil work varies with the project.

The power capacity of an HVDC project is the most important parameter among those listed above,

in terms of impact on the end price of the converter station. As the power capacity of an HVDC

converter station increases, the price per kW reduces. In 2012, the lowest average price of an

HVDC converter station whose capacities ranged between XX MW and XX MW was $XX per kW,

while the highest price was $XX per kW. During the same year, the lowest and highest prices of an

HVDC converter station whose capacities were above XX MW were $XX per kW and $XX per kW

respectively. The figure below shows the per kW prices of HVDC converter stations in 2012, for

different power capacities.




Global HVDC Converter Station Market Analysis

Figure 8: HVDC Converter Station Market, Global, Price Analysis ($/kW), 2012

<100

100–

300

300–

500

500–

1,00

0

1,00

0–1,

500

1,50

0–2,

000

2,00

0–3,

000

3,00

0–5,

000

5,00

0–6,

000

6,00

0–8,

000

>8,0

00Capacity (MW)

Aver

age

pric

e ($

/kW

)

Minimum price Maximum price

Source: GlobalData, Power eTrack, Equipment Market Database [Accessed on July 19, 2013]

Table 3: HVDC Converter Station Market, Global, Price Analysis ($/kW), 2012 Capacity (MW) Minimum price Maximum price

<100

100–300

300–500

500–1,000

1,000–1,500

1,500–2,000

2,000–3,000

3,000–5,000

5,000–6,000

6,000–8,000

>8,000





Global HVDC Converter Station Market, Key Country Analysis

4.3.6 HVDC Converter Station Market, India, Annual Volume, 2006–2020

The HVDC converter station market in India observed the deployment of a considerable number of

projects during 2006 to 2012. The objectives of reducing T&D losses, transmitting power from

remotely located power-generating units to load centers and interconnecting the country’s regional

grids have been the key factors behind the growth of the HVDC converter station market. The

annual volume of HVDC converter stations increased from XX units in 2006 to XX units in 2011,

and reduced to two units in 2012. The irregular trend observed in the HVDC market is due to the

changing number of contracts signed for HVDC converter stations annually.

These factors will continue to drive the growth of the HVDC converter station market between 2013

and 2020. During this period the annual volume of HVDC converter stations is estimated to range

from four to seven units

Figure 25: HVDC Converter Station Market, India, Annual Volume (Units), 2006–2020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Annu

al v

olum

e (u

nits

)






4.5.2 HVDC Converter Station Market, Sweden, Total Transmission Line Length, 2006–2020

The Swedish transmission grid has observed considerable growth since the deregulation of the

country’s power market. The transmission network in Sweden is largely comprised of XXkV–XXkV

and XXkV transmission lines. It also has XXkV and HVDC lines, which formed a small portion of

the grid in 2012. The cumulative length of power transmission lines in Sweden was XX Ckm in

2006, and this increased to XX Ckm in 2012. During 2006 to 2012, XXkV–XXkV transmission lines

were the most widely deployed, and amounted to XX Ckm in 2012, while the length of lines at

XXkV and XXkV voltage levels amounted to XX Ckm and XX Ckm respectively. Sweden had

around XX Ckm of HVDC transmission line length in 2012.

Over the forecast period 2013 to 2020, the cumulative length of transmission lines is expected to

increase, from XX Ckm in 2013 to XX Ckm in 2020. The transmission network in Sweden often

becomes strained due to increasing electricity load, which occurs during transmission of high levels

of hydropower electricity, generated in the north, to load centers in the south. The increased power

trading between the Nordic and other European countries has also increased congestion in the

existing transmission network. To overcome the transmission obstacles, considerable investment is

expected to expand and upgrade the existing transmission network in Sweden over the forecast

period. The country’s transmission network will be strengthened to enable increasing power trade

between countries, and also to accommodate the growing amount of wind energy that will be

channeled into the grid.





Figure 34: HVDC Converter Station Market, Sweden, Transmission Line Length (Ckm), 2006–2020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Tran

smis

sion

line

leng

ht (C

km)

70–130kV 220kV 275kV 400kV HVDC

Source: GlobalData, Power eTrack, Transmission and Distribution Database [Accessed on July 10, 2013]




Appendix

5 Appendix

5.1 Definitions

5.1.1 HVDC Converter Station

HVDC converter stations convert AC electricity generated from a power plant to a DC current.

5.1.2 HVDC Transmission System

HVDC transmission systems have the capability to transmit power over long distances with

minimum T&D losses.

5.1.3 Power

According to Energy Information Administration, power is defined as the rate of producing,

transferring, or using energy, most commonly associated with electricity. Power is measured in

watts and often expressed in kilowatts (kW) or Megawatts (MW). Also known as ‘real’ or ‘active’

power.

5.1.4 Installed Capacity

According to Energy Information Administration, installed capacity is defined as the amount of

electric power delivered or required for which a generator, turbine, transformer, transmission circuit,

station, or system is rated by the manufacturer.

5.1.5 Electricity Generation

According to Energy Information Administration, electricity generation is defined as the process of

producing electric energy by transforming other forms of energy; also, the amount of electric

energy produced, expressed Gigawatt hours (GWh).

5.1.6 Net Electricity Consumption

Consumption of electricity calculated as generation, plus imports, minus exports, minus

transmission and distribution losses, measured in Gigawatt hours (GWh).

5.1.7 Thermal Power Plant

A plant in which turbine generators are driven by burning fossil fuels.




Appendix

5.1.8 Hydropower Plant

According to Energy Information Administration, a hydropower plant is defined as a plant in which

the turbine generators are driven by falling water.

5.1.9 Nuclear Power

According to Energy Information Administration, nuclear power is defined as the electricity

generated by the use of the thermal energy released from the fission of nuclear fuel in a reactor.

5.1.10 Renewable Energy Resources

According to Energy Information Administration, renewable energy resources are naturally

replenishing but flow-limited energy resources. They are virtually inexhaustible in duration but

limited in the amount of energy that is available per unit of time. Renewable energy resources

include: biomass, biogas, solar, and wind.

5.1.11 Electricity Consumption

Electricity consumption is a sum of electricity generated, plus imports, minus exports, minus

transmission and distribution losses, measured in Gigawatt hours (GWh).

5.1.12 Market Size

The revenue generated from the HVDC converter station sold in that particular period.




Appendix

5.2 Abbreviations

Table 53: List of Abbreviations Abbreviations Full Form

AC Alternating Current

CAGR Compound Annual Growth Rate

Ckm Circuit kilometer

DC Direct Current

EC European Commission

EHV Extra High Voltage

FYP Five year Plan

GW Gigawatt

HVAC High Voltage Alternative Current

HVDC High Voltage Direct Current

Hz Hertz

IAEA International Atomic Energy Agency

Km Kilometer

kV Kilovolt

kW Kilowatt

MW Megawatt

MWh Megawatt hour

R&D Research and Development

ROW Right of Way

RPS Renewable Portfolio Standards

SEB State Electricity Board

SGCC State Grid Corporation Of China

T&D Transmission and Distribution

TSO Transmission System Operator

TW Terawatt

TWh Terawatt hour

UHV Ultra High Voltage

UHVDC Ultra High Voltage Direct Current

Source: GlobalData




Appendix

5.3 Bibliography

ABB (2009). Rio Madeira - The longest transmission link in the world - 2,375 kilometers. ABB.

Available from:

http://www.abb.co.in/industries/ap/db0003db004333/137155e51dd72f1ec125774b004608ca.as

px [Accessed on July 10, 2013]

Beniwal A (2012). HVDC Technology Prepares System For More Wind Power. Renew Grid.

Available from: http://www.renewgridmag.com/print.php?plugin:content.8632 [Accessed on

August 13, 2013]

Birol F (2004). Power to the people – The World Outlook for Electricity Investment.

International Atomic Energy Agency. Available from:

http://www.iaea.org/Publications/Magazines/Bulletin/Bull461/article3.pdf

Brazil.gov (2012). The Energy Matrix. Brazil. Gov. Available from: http://www.brasil.gov.br/cop-

english/overview/what-brazil-is-doing/the-energy-matrix/print [Accessed on July 10, 2013]

CE (2012). The UK Offshore Wind Report, 2012. The Crown Estate. Available from:

http://www.thecrownestate.co.uk/media/297872/UK%20offshore%20wind%20report%202012.p

df

EWEA (2011). Pure Power Wind Energy Targets for 2020 and 2030. European Wind Energy

Association. Available from:

http://www.ewea.org/fileadmin/ewea_documents/documents/publications/reports/Pure_Power_

III.pdf

EWEA (2013). The European offshore wind industry key trends and statistics 2012. European

Wind Energy Association. Available from:

http://www.ewea.org/fileadmin/files/library/publications/statistics/European_offshore_statistics_

2012.pdf

GoI (2012). Report of The Working Group on Power for Twelfth Plan (2012-17). Government of

India, Ministry of Power. Available from:

http://planningcommission.nic.in/aboutus/committee/wrkgrp12/wg_power1904.pdf




Appendix

GTAI (2013). Germany’s Wind energy industry - Market Conditions, Investment Environment

and Business Opportunities. Germany Trade and Investment. Available from:

http://www.gtai.de/GTAI/Content/EN/Invest/_SharedDocs/Downloads/GTAI/Fact-

sheets/Energy-environmental/fact-sheet-wind-energy-in-germany.pdf

Heyman O (2012). HVDC Light It’s time to connect. ABB. Available from:

http://www05.abb.com/global/scot/scot221.nsf/veritydisplay/2742b98db321b5bfc1257b26003e

7835/$file/Pow0038%20R7%20LR.pdf

IMF (2012). World Economic Outlook database [database]. International Monetary Fund.

Available from: http://www.imf.org/external/pubs/ft/weo/2012/02/weodata/WEOOct2012all.xls

[Accessed on October 20, 2012]

Lang and Mutschler (2013). Bundesrat Passes Federal Requirement Plan for Transmission

Networks. Germany Energy Blog. Available from: http://www.germanenergyblog.de/?p=13250

[Accessed on July 10, 2013]

Niehage U (2011). HVDC Growth Market – More Energy Highways for Europe’s Power Grid.

Siemens. Available from: http://www.siemens.com/press/pool/de/events/2011/energy/2011-09-

mallorca/presentation-niehage-e.pdf

Norling J (2012). Fenno-Skan 2. Svenska Kraftnät. Available from:

http://www.svk.se/Start/English/Projects/Project/Completed-projects/Fenno-Skan-2/ [Accessed

on July 15, 2013]

Rudervall R, et al. (2000). High Voltage Direct Current (HVDC) Transmission Systems

Technology Review Paper. Energy Week 2000 Washington, D.C, USA. Available from:

http://large.stanford.edu/courses/2010/ph240/hamerly1/docs/energyweek00.pdf

SOU (2008). Grid Issues for Electricity Production Based on Renewable Energy Sources in

Spain, Portugal, Germany, and United Kingdom. Statens Offentliga Utredningar. Available

from: http://www.regeringen.se/content/1/c6/09/85/14/4c8fba69.pdf

Swedish Energy Markets Inspectorate (2011). The Swedish electricity and natural gas markets

2010. Swedish Energy Markets Inspectorate. Available from: http://www.energy-

regulators.eu/portal/page/portal/EER_HOME/EER_PUBLICATIONS/NATIONAL_REPORTS/N

ational%20Reporting%202011/NR_En/C11_NR_Sweden-EN.pdf




Appendix

WNA (2013). World Energy Needs and Nuclear Power. World Nuclear Association. Available

from: http://www.world-nuclear.org/info/Current-and-Future-Generation/World-Energy-Needs-

and-Nuclear-Power/#.UfuCLtKB_Sg [Accessed on July 10, 2013]

5.4 Coverage

This report gives detailed information on the global HVDC converter station market. The report also

provides in-depth coverage of the markets for China, Brazil, India, Norway, Sweden, the UK,

Germany and the US. The report contains:

Analysis of the HVDC converter station market, providing data on the market size, capacity,

average price, key contracts and market share for key players

Data on the market size, capacity, price, key projects and market share of players for HVDC

converter stations, both globally and for the above-mentioned eight countries

SWOT analysis of the key HVDC converter station market players

Drivers and restraints affecting the HVDC converter station market

5.5 Methodology

GlobalData’s dedicated research and analysis teams consist of experienced professionals with a

pedigree in marketing and market research, consulting backgrounds in the energy industry, and

advanced levels of statistical expertise.

GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk) and

the Strategic and Competitive Intelligence Professionals (www.scip.org).

All GlobalData’s databases are continuously updated and revised. The following methodology has

been followed for the collection and analysis of data presented in this report.




Appendix

5.5.1 Secondary Research

The research process begins with exhaustive secondary research within GlobalData's own

databases and external sources.

Market values and capacity, pricing estimates and market growth rates are arrived at by taking the

following into consideration:

Statistics and historic trends provided by government bodies, industry associations and equipment

vendors for HVDC converter stations.

Government plans expanding the countries transmission grid, interconnection between countries

and growth plans or targets for generation and installed capacity of renewable energy sources

specifically hydro and offshore wind plants

Government and private sector investments

Government regulations, policies, incentives and targets for power generation and transmission

Other insights built through secondary research and analysis of company websites, annual reports,

investor presentations, industry and trade journals, and association data

5.5.2 Primary Research

A number of primary interviews are conducted with personnel across the value chain to verify and

fine-tune the market numbers obtained from secondary research and get first-hand information on

industry trends.

Participants are drawn from a diverse set of backgrounds including HVDC converter station

manufacturers, transmission grid operators, industry associations and government bodies.

Participants include, but are not limited to, business development and sales managers, C-level

executives, industry consultants and purchasing managers




Appendix

5.5.3 Definitions, Market Estimates and Assumptions

The capacities for HVDC converter stations have been calculated by adding power capacities

of all the HVDC contracts for a given year. The annual volume sales for HVDC converter

stations have been forecast based on the type of HVDC converter station deployed (Bi-pole

and back to back HVDC converter stations).

The market revenue has been calculated by multiplying the capacity of the HVDC converter

stations with the average price of the converter station.

It has been assumed that the contracts for HVDC converter stations will be signed on an

average two to three years prior to the commissioning or completion of the project.

It has been assumed that the average price of HVDC converter stations will reduce with

increasing capacity of HVDC converter stations.

Various qualitative and quantitative insights have been considered for estimating the market

size. The forecast data and model has been validated through various industry experts.

5.6 Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

permission of the publisher, GlobalData.

high-voltage direct current (hvdc) converter stations ... · pdf filehigh-voltage direct...

Documents