May 11 2010
Currently, there is a global need of a modern power grid for meeting the requirements for a secure, cost-effective, environmentally-friendly, reliable power solution. Owing to increasing prominence on green issues including carbon emissions and climate change, the focus on generating power from renewable resources is also gaining significance.
High voltage direct current (HVDC) is a viable solution meant for offshore wind farms since electrical energy transmitted via underwater cables cannot be done using alternating current (AC). HVDC has numerous advantages for the emerging smart grid.
Analysis from ‘European Smart Grid Market - Advanced Component’ of Frost & Sullivan indicates that the market for HVDC earned €550 million in revenues in 2008 and forecasts this figure to hit €973.7 million by 2015. Estimates of project costs include cable, converter, cable installation, management, station construction, risk insurance and technical support.
The Senior Research Analyst of Frost & Sullivan Vikas Ravindran commented that the increase in offshore solar and wind farms has led to the usage of HVDC for transmitting electrical energy.
Primarily utilized for bulk power transmission, HVDC has been utilized for over 30 years. When used for transmitting power over long distances, HVDC has lesser electrical losses and less expensive in comparison with AC. The electricity market in Europe is shifting towards electricity networks homogeneity even with the introduction of 28 projects.
Nevertheless, the incapability to be utilized for shorter distances and high cost associated with the technology are impeding the HVDC growth. The role of the government is also crucial to the success of HVDC projects.
‘European Smart Grid Market - Advanced Component’ is a part of Frost & Sullivan’s Energy & Power Growth Partnership Services programme that comprises research in the markets: United States Smart Grid Market, United States Smart Meter Market and European Smart Meter Markets among others.
Source: http://www.frost.com/