Flexible AC Transmission Systems

Series Compensation, Static VAR Compensators, Static Synchronous Compensators, and Distributed SVC/STATCOMs: Global Market Analysis
and Forecasts

Flexible alternating current transmission system (FACTS) technologies have evolved significantly during the past 40 years. Complex engineered solutions such as static VAR compensators (SVCs) and static synchronous compensators (STATCOMs) have been developed to address emerging local transmission grid conditions and improve the reliability and stability of the high-voltage (HV) transmission grid. New utility-scale generation resources like wind farms and large solar parks now compete with traditional coal, gas, and nuclear generation plants in global markets, creating new transmission grid problems and opportunities.

Since AC transmission systems are prevalent in the transmission industry, the installation of FACTS solutions will continue, both to replace existing aging infrastructure and to support the trouble-free interconnection of wind and renewable generation. FACTS technologies can be used to creatively solve demanding problems in transmission all over the world. Growth in electricity demand, the need to mitigate voltage drops over long-haul transmission lines, population growth, and the proliferation of wind and solar generation resources are just a few of the drivers for the global increase in FACTS installations. Navigant Research forecasts that global cumulative FACTS installation revenue will amount to $42 billion between 2014 and 2023.

This Navigant Research report analyzes the global market for FACTS technologies. The study provides an analysis of the market issues, including trends, drivers, challenges, opportunities, and regulatory factors, related to FACTS solutions. Global market forecasts for the installation of voltage support and reactive power correction (megavolt-ampere reactive, or MVAR) and revenue, segmented by region, technology, and scenario, extend through 2023. The report also examines the key technologies associated with FACTS solutions, as well as the FACTS roadmap and competitive landscape.

Key Questions Addressed:
  • What are some of the recent and notable flexible AC transmission system (FACTS) installations?
  • Why are various FACTS technologies selected?
  • What are the main drivers for FACTS installations around the world?
  • Who are the key players in the global FACTS market?
  • Which regions offer the best opportunities for future FACTS revenue growth?
  • Which FACTS technologies represent the largest ongoing revenue opportunity?
Who needs this report?
  • Transmission equipment manufacturers
  • FACTS suppliers
  • Renewable energy equipment and service providers
  • Wind and solar generation project owners and developers
  • Transmission operators
  • Utilities
  • Government agencies and regulators
  • Investor community

Table of Contents

1. Executive Summary

1.1  Market Overview

1.2  FACTS Drivers

1.3  Key FACTS Technologies

1.4  FACTS Market Forecasts

2. Market Issues     

2.1  Introduction

2.2  Market Drivers

2.2.1   Network Reliability

2.2.2   Grid Efficiency

2.2.3   Grid Capacity

2.2.4   Generation Plant Retirements

2.2.5   Aging Infrastructure

2.2.6   Integration of Large-Scale Renewables

2.2.7   Move from Centralized to Distributed Grid Management Technologies

2.3  Market Challenges

2.3.1   Capital Requirements

2.3.2   Land Use and Eminent Domain

2.3.3   Regulatory Environment

2.4  Market Trends and Opportunities by Region

2.4.1   North America

   2.4.1.1  Regulatory Policies in the United States and Canada

   2.4.1.2  Uncertainties in the North American Market

2.4.2   Europe

   2.4.2.1  Regulatory Policies in Europe

   2.4.2.2  Uncertainties in the European Market

2.4.3   Asia Pacific

   2.4.3.1  India

   2.4.3.2  Regulatory Policies in India

   2.4.3.3  China

   2.4.3.4  Regulatory Policies in China

   2.4.3.5  Uncertainties in the Asia Pacific Market

2.4.4   Latin America, the Middle East, and Africa

   2.4.4.1  Brazil

   2.4.4.2  Saudi Arabia

   2.4.4.3  South Africa

3. Technology Issues 

3.1  Introduction to HVAC Transmission Systems

3.2  Introduction to FACTS Technologies

3.3  Primary Components of FACTS

3.3.1   SC

   3.3.1.1  SC Use Case: Texas

   3.3.1.2  SC Use Case: South Africa

   3.3.1.3  SC Use Case: Canada

3.3.2   SVC

   3.3.2.1  SVC Use Case: Saudi Arabia

   3.3.2.2  SVC Use Case: California

   3.3.2.3  SVC Use Case: Texas

3.3.3   STATCOM

   3.3.3.1  STATCOM Use Case: Texas

   3.3.3.2  STATCOM Use Case: Australia

   3.3.3.3  STATCOM Use Case: Canada

3.3.4   D-SVC/D-STATCOM

   3.3.4.1  D-SVC/D-STATCOM Use Case: Western Australia

   3.3.4.2  D-SVC/D-STATCOM Use Case: United Kingdom

   3.3.4.3  D-SVC/D-STATCOM Use Case: Brazil

3.4  The FACTS Roadmap

4. Key Industry Players

4.1  Major FACTS Suppliers

4.1.1   ABB

4.1.2   Alstom SA

4.1.3   AMSC

4.1.4   GE Energy

4.1.5   S&C Electric Company

4.1.6   Siemens AG

4.2  Other FACTS Suppliers

4.2.1   XD Group

4.2.2   Cooper Power Systems

4.2.3   Hitachi

4.2.4   Mitsubishi Electric

4.2.5   Varentec

4.3  Large Utilities and Transmission Companies

4.3.1   American Electric Power

4.3.2   CSG

4.3.3   ETT

4.3.4   Ergon Energy

4.3.5   Eskom

4.3.6   Hydro One

4.3.7   Hydro-Québec

4.3.8   Oncor Electric Delivery Company

4.3.9   PG&E

4.3.10    POWERGRID

4.3.11    SEC

4.3.12    SGCC

4.4  ISOs and RTOs

4.4.1   CAISO

4.4.2   ERCOT

4.4.3   ENTSO-E

4.4.4   ISO New England

4.4.5   Midcontinent Independent System Operator

4.4.6   PJM Interconnection

4.4.7   SPP

4.4.8   Western Electricity Coordinating Council

5. Market Forecasts

5.1  Introduction

5.2  Forecast Methodology

5.2.1   Pricing Assumptions

5.3  Global FACTS Market Forecast

5.3.1   Global SC Market

5.3.2   Global SVC Market

5.3.3   Global STATCOM Market

5.3.4   Global D-SVC/D-STATCOM Market

5.4  Conclusions and Recommendations

6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • Annual FACTS Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Cumulative FACTS Installation MVAR by Region, Base Scenario, World Markets: 2014-2023

  • Cumulative FACTS Installation Revenue by Scenario, World Markets: 2014-2023
  • Annual FACTS Installation MVAR by Region, Base Scenario, World Markets: 2014-2023
  • Annual FACTS Installation Revenue by Technology, Base Scenario, World Markets: 2014-2023
  • Annual Series Compensation Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Annual Static VAR Compensator Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Annual STATCOM Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Annual D-SVC/D-STATCOM Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Annual FACTS Revenue by Technology, Base Scenario, North America: 2014-2023
  • Annual FACTS Revenue by Technology, Base Scenario, Europe: 2014-2023
  • Annual FACTS Revenue by Technology, Base Scenario, Asia Pacific: 2014-2023
  • Annual FACTS Revenue by Technology, Base Scenario, Latin America: 2014-2023
  • Annual FACTS Revenue by Technology, Base Scenario, Middle East: 2014-2023
  • Annual FACTS Revenue by Technology, Base Scenario, Africa: 2014-2023
  • FACTS Revenue Breakdown by Technology and Region, Base Scenario, World Markets: 2014
  • FACTS Revenue Breakdown by Technology and Region, Base Scenario, World Markets: 2023
  • Generation Plant Retirements, North America: 2012-2040
  • Electric Reliability Councils in the United States and Canada
  • ISOs and RTOs in North America
  • 2050 Goals for Renewable Generation, European Union: 2010-2050
  • Current ENTSO-E Countries with TSOs in the European Market
  • Planned HV Transmission Systems under Implementation in India
  • Profile of China Grid Company Transmission Grid Coverage
  • Map of SADC and Eskom Transmission Service Territory
  • SC Implementation for CREZ Transmission Project in Texas by GE
  • Simplified AC T&D System
  • SVC Implementation at an HVAC Transmission Substation
  • SC Single-Line Diagram
  • SC Implementation at an HVAC Transmission Substation
  • SVC Single-Line Diagram
  • SVC Implementation at an HVAC Transmission Substation in Peru
  • SVC Implementation at SEC’s Quwayyah Substation
  • STATCOM Single-Line Diagram
  • ABB Implementation at an HVAC Transmission Interconnection in the United Kingdom
  • ABB STATCOM Implementation at Austin Energy’s Holly Generation Plant
  • Modular STATCOM Implementation at Young-Davidson Mine in Ontario, Canada
  • Typical Modular Configuration of a D-SVC/D-STATCOM Solution
  • D-SVC/D-STATCOM Implementation at Collgar Wind Farm in Australia

List of Tables

  • FACTS Installation Revenue Market Share by Region, World Markets: 2014 and 2023
  • ABB SWOT Analysis
  • Alstom Grid SWOT Analysis
  • AMSC SWOT Analysis
  • GE Energy SWOT Analysis
  • S&C SWOT Analysis
  • Siemens Energy SWOT Analysis
  • Annual FACTS Installation MVAR by Region, Base Scenario, World Markets: 2014-2023
  • Annual FACTS Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Cumulative FACTS Installation MVAR by Region, Base Scenario, World Markets: 2014-2023
  • Cumulative FACTS Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Annual FACTS Installation Revenue by Technology, Base Scenario, World Markets: 2014-2023
  • Cumulative FACTS Installation Revenue by Scenario, World Markets: 2014-2023
  • Annual Series Compensation Installation MVAR by Region, World Markets: 2014-2023
  • Annual Series Compensation Installation Revenue by Region, Conservative Scenario, World Markets: 2014-2023
  • Annual Series Compensation Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Annual Series Compensation Installation Revenue by Region, Aggressive Scenario, World Markets: 2014-2023
  • Annual Static VAR Compensator Installation MVAR by Region, Base Scenario, World Markets: 2014-2023
  • Annual Static VAR Compensator Installation Revenue by Region, Conservative Scenario, World Markets: 2014-2023
  • Annual Static VAR Compensator Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Annual Static VAR Compensator Installation Revenue by Region, Aggressive Scenario, World Markets: 2014-2023
  • Annual STATCOM Installation MVAR by Region, Base Scenario, World Markets: 2014-2023
  • Annual STATCOM Installation Revenue by Region, Conservative Scenario, World Markets: 2014-2023
  • Annual STATCOM  Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Annual STATCOM Installation Revenue by Region, Aggressive Scenario, World Markets: 2014-2023
  • Annual D-SVC/D-STATCOM Installation MVAR by Region, Base Scenario, World Markets: 2014-2023
  • Annual D-SVC/D-STATCOM Installation Revenue by Region, Conservative Scenario, World Markets: 2014-2023
  • Annual D-SVC/D-STATCOM Installation Revenue by Region, Base Scenario, World Markets: 2014-2023
  • Annual D-SVC/D-STATCOM Installation Revenue by Region, Aggressive Scenario, World Markets: 2014-2023

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