Saudi Arabia High-Voltage Direct Current (HVDC) Transmission Systems Market - Growth, Trends, and Forecasts (2020 - 2025)

The market for Saudi Arabia High-Voltage Direct Current (HVDC) Transmission Systems is expected to grow at a CAGR of approximately 10.05% during the forecast period of 2020 - 2025. The increasing demand for cost-effective solutions for long-distance power transmission, ease in controlling the active power link, the possibility of bulk power transmission, and low loss in transmission of power (over HVAC) are some of the significant factors that drive the Saudi Arabia HVDC transmission systems market. However, the growing demand for distributed and remote power plants that provide electricity in rural areas without the need for large transmission & distribution infrastructure is expected to hinder the growth of the HVDC transmission systems market in the coming years.

• Submarine HVDC transmission system is expected to account for the largest share in the Saudi Arabia HVDC transmission systems market by transmission type on account of upcoming development projects driven by the increasing focus on power trading between countries.
• Technological advancement in HVDC transmission systems is expected to help in mitigating operational issues with wind and solar-based electricity transmission system, as the phase difference does not matter in the HVDC transmission line. While conventional HVAC does not work on this principle, it requires transformers to match the phase generated from a different source. Hence, this is expected to provide a better opportunity for the growth of the HVDC transmission system market in the country.
• Increased penetration of renewable energy driving HVDV transmission system in the country, has been driving the demand for HVDC transmission systems over the forecast period.

Key Market Trends

Submarine HVDC Transmission System Expected to Dominate the Market

• The submarine transmission of electricity is gaining importance on account of increasing focus on power trading between countries. The HVDC submarine power transmission system is considered as a critical technology for the development of future power transmission networks. It is also the only solution available for the transfer of high power across long subsea distances. For these reasons, HVDC lines are preferred for interconnecting offshore wind plants worldwide.
• In the HVDC transmission system, the submarine power cables can be less costly, especially on a long link where the capacitance of the wire requires too much additional charging current.
• As of December 2018, Saudi Arabia had an installed power capacity of over 88.5 GW, out of which SEC shares the maximum generation capacity. The generation capacity of SEC reached 53.53 GW by the end of 2018, while the transmission and distribution networks reached about 83 thousand and 666 thousand kilometers circular, respectively.
• Factors such as the increasing number of offshore wind farms along with inter-connections between countries through submarine cables are expected to increase the demand for submarine transmission systems over the forecast period. This, in turn, likely to propel the market studied.vv

Increased Penetration of Renewable Energy to Drive the Market

• Given the increase in renewable generation in recent years, it has become increasingly important to deploy direct high-voltage current (HVDC) transmission lines. The HVDC transmission lines have a significant role to play when additional renewable generation sources become integrated into electrical grids.
• The Saudi power sector is on a growth trajectory and is racing to keep up with growing electricity demand. The country is undergoing structural reforms in the power sector that mainly aim at privatizing the industry, including the unbundling of the state-run Saudi Electricity Company (SEC). Investments of more than USD 130 billion are expected to be made in the electricity sector by 2022 to cover a peak load of 110,000 MW.
• The Saudi Arabia government has been promoting the deployment of the HVDC lines to transfer large amounts of power over long distances. They are now being proposed as a way to move electricity generated from wind in high-quality wind resource regions to other parts of the country.
• Moreover, the offshore wind installation is likely to create an opportunity for the increase in demand for the HVDC transmission lines during the forecast period. Besides, To better equip its grid system for peak power demand, the country led a Gulf Cooperation Council project to link grids of the member states. Furthermore, Saudi Arabia runs its electricity transmission network at 380 kV, 60 Hz, while the other five countries in GCC use 400 kV, 50 Hz. Based on the asynchronous nature of the interconnected state’s electricity, the best solution was to add an HVDC interconnection.
• This interconnection has introduced the region to international power trading. Hence, the development of the HVDC system for National and Cross Border Grid Interconnections can be considered the major factor driving the HVDC transmission systems market in the country. Furthermore, the country is looking to build a 3 GW link, worth USD 1.6 billion, with Egypt. The project involves 1500 km of DC line and 16 km of DC cable. The country is under discussion to build links with Turkey, Yemen, and other parts of the Middle East.
• Furthermore, the refurbishment of the aging infrastructure of transmission lines in the country, and increasing renewable power generation, which requires a new installation of the HVDC transmission system is expected to drive the demand for the HVDC transmission system in the country, during the forecast period.

Competitive Landscape

The Saudi Arabia high-voltage direct current (hvdc) transmission systems market report is consolidated with the major companies accounting for almost 70% of the market share. The key players in this market include SNC-Lavalin Group Inc., ABB Ltd, Siemens AG, Toshiba Corporation, General Electric Company, and others.

Reasons to Purchase this report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.