United States High-voltage Direct Current (HVDC) Transmission Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The US high-voltage direct current (HVDC) transmission systems market is expected to register a CAGR of more than 11% during the forecast period of 2022-2027. The COVID-19 outbreak in Q1 of 2020 had a moderate effect in terms of delayed ongoing projects and rescheduling of trends for upcoming projects. Factors such as the increasing investments and upcoming transmission and distribution projects, increasing penetration of renewable energy sources, and expansion of electricity infrastructure are expected to drive the market during the forecast period. However, high installation costs and high losses for smaller transmission distances are likely to hinder the market growth.

Key Highlights

• The submarine HVDC transmission system is expected to witness significant growth due to upcoming project developments and an increasing focus on power trading between countries.
• Technological advancements in HVDC transmission systems are expected to help in mitigating operational issues with offshore wind- and solar-based electricity transmission systems. Hence, this is expected to provide a better opportunity for the growth of the HVDC transmission system market in the country.
• The increasing penetration of renewable energy sources is likely to drive the US high-voltage direct current (HVDC) transmission systems market during the forecast period.

Key Market Trends

The Submarine HVDC Transmission System Type is Expected to Witness Significant Growth

• The submarine transmission of electricity is gaining importance on account of the increasing focus on power trading between countries. The HVDC submarine power transmission system is considered a key 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 cable requires too much additional charging current.
• As of 2020, the upcoming projects in the United States such as Atlantic Wind Connection-Transmission (worth USD 5 billion approx.), Grain Belt Express Clean Line (worth USD 3 billion approx.), and Trans-West Express Transmission Line (worth USD 3 billion approx.) are anticipated to create a huge demand for HVDC transmission systems.
• In June 2021, SOO Green HVDC Link announced the selection of Prysmian Group as its preferred supplier of high-voltage direct current cable systems for the first-of-its-kind transmission project to be installed underground along with existing railroad rights of way. The 2,100 MW interregional project, considered the first link in a national clean energy grid, will connect two of the largest energy markets in the United States.
• Factors such as the increasing number of offshore wind farms, along with interconnections between countries through submarine cables, are expected to increase the demand for submarine transmission systems over the forecast period.
• Therefore, owing to the above points, submarine HVDC transmission systems are expected to witness significant growth during the forecast period.

Increased Penetration of Renewable Energy Sources Driving the Market Demand

• The US power supply is undergoing a significant transition, shifting away from fossil fuels and moving toward renewable energy sources. Moreover, wind and solar PV are on track to become the cheapest sources of electricity, thereby providing new opportunities for decarbonization. Also, as more significant number of coal plants are decommissioned, renewable generation is expected to play a vital role in fulfilling the increasing energy demand.
• Moreover, the cost of renewable power generation, mainly solar and wind power generation, is continuously declining. The primary reasons are manufacturing innovations, improvement in wind turbine materials and designs, economies of scale, and advances in thermal energy storage systems for concentrated solar power (CSP) plants.
• Furthermore, during 2020, renewable energy in the United States provided about 11.59 quadrillion British thermal units (Btu) equal to 12% of the total energy consumption. The electric power sector accounted for about 60% of the total US renewable energy consumption in 2020, and about 20% of the total US electricity generation was from renewable energy sources.
• Besides, the renewable power plants are generally located in rural areas and require long-distance transmission lines to provide generated electricity to the consumers. HVDC has become an integral part of many transmission grids, as it can connect remote sources of electrical generation (renewable sources, like hydro or wind) to load centers where it is needed, hundreds or even thousands of kilometers away.
• There are plans underway to develop the 600 kV, 4,000 MW Plains and Eastern Clean Line to deliver wind power from the Oklahoma‐Texas Panhandle to Arkansas, Tennessee, and other states in the region.
• Additionally, a Danish investment firm and Siemens AG are backing a proposed USD 2.5 billion underground high-voltage direct-current transmission line, which may be the first of its kind in the United States.
• In October 2021, Orsted and Eversource selected Siemens Energy to supply a transmission system for a 924 MW offshore wind farm powering New York State. Sunrise wind will be the first offshore wind project in the United States to use HVDC transmission technology.
• Therefore, owing to the above points, increasing renewable energy installations are expected to drive the US high-voltage direct current (HVDC) transmission systems market during the forecast period.

Competitive Landscape

The US high-voltage direct current (HVDC) transmission systems market is moderately fragmented. The key players in the market include General Electric Company, Toshiba Corporation, Siemens Energy AG, LS Electric Co. Ltd, and NKT AS, among others.

Additional Benefits:

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

This product will be delivered within 2 business days.