Transmission System Upgrades for Renewable Energy Integration

High-Voltage Alternating Current Transmission Systems, High-Voltage Direct Current Transmission Systems, and Energy Storage Systems
for Large-Scale Wind and Solar Integration

In the face of growing global demand for electricity and intensifying pressure to curtail greenhouse gas (GHG) emissions, the development of renewable energy resources is on the rise worldwide. As countries with mature power sectors shift toward a more renewables-heavy generation mix and those with emerging power sectors build out their grids to accommodate new renewable capacity, demand for transmission system technologies required to integrate renewables is also increasing.

The nature of transmission system extensions triggered by new renewable energy capacity will vary based on a series of factors, including generation type (e.g., wind, offshore wind, or solar), plant size, and distance from the grid. These extensions will also vary based on the regulatory framework governing the development of new transmission lines within a given region. The variability of renewable generation creates challenges for grid networks designed to absorb the steady output of conventional fossil-fuel generation, raising the need for additional solutions to ensure grid stability and reliability. According to Navigant Research, global spending on transmission system infrastructure for renewable energy integration is expected to grow from $36.7 billion in 2016 to $46.7 billion in 2025.

This Navigant Research report examines the market for transmission system technologies required to integrate large-scale renewable energy generation. The primary technology segments analyzed are high-voltage alternating current (HVAC) transmission systems, high-voltage direct current (HVDC) transmission systems, and utility-scale energy storage systems (ESSs). These segments are further examined by equipment subcategory. HVAC equipment subcategories include substations, transmission lines, and flexible alternating current transmission systems (FACTS). HVDC equipment subcategories include converter stations and transmission lines. Global market forecasts of renewable energy capacity additions and revenue extend through 2025 and are also presented by region and generation type.

Key Questions Addressed:
  • What are the primary markets for large-scale renewable energy capacity additions and related transmission system investments?
  • How will transmission system technologies vary by renewable energy generation type?
  • What is the expected balance between new HVAC and HVDC transmission investments for renewable energy integration?
  • How will the variability of renewable resources influence transmission system upgrades?
  • What is the role of utility-scale energy storage as the generation mix shifts toward renewables?
Who needs this report?
  • High-voltage transmission system technology vendors
  • Transmission system developers
  • Transmission planning organizations
  • Utilities
  • Government agencies
  • Non-governmental organizations
  • Investor community

Table of Contents

1. Executive Summary

1.1  Market Overview

1.2  Report Scope

1.3  Key Trends

1.4  Global Outlook

2. Market Issues

2.1  Introduction

2.2  Renewable Energy Outlook

2.2.1  Wind Power

2.2.1.1  Onshore Wind

2.2.1.2  Offshore Wind

2.2.2  Solar Power

2.3  Major Technology Segments

2.3.1  HVAC Transmission Systems

2.3.2  HVDC Transmission Systems

2.3.3  ESSs

2.4  Market Drivers

2.4.1  Transmission Distance

2.4.2  Land-Use Constraints

2.4.3  Variability of Renewable Power Output

2.5  Market Barriers

2.5.1  Regulatory Barriers

2.5.2  Financial Barriers

3. Technology Issues

3.1  Transmission System Technologies

3.1.1  HVAC Systems

3.1.1.1  Substations

3.1.1.2  HVAC Transmission Lines

3.1.1.3  FACTS

3.1.2  HVDC Systems

3.1.2.1  Converter Stations

3.1.2.2  HVDC Transmission Lines

3.1.3  ESSs

3.1.4  Other Emerging Technologies

4. Regional Issues

4.1  Regional Overview

4.1.1  North America

4.1.2  Europe

4.1.3  Asia Pacific

4.1.3.1  China

4.1.3.2  India

4.1.4  Latin America

4.1.5  Middle East & Africa

5. Key Industry Players

5.1  Methodology and Assumptions

5.2  Revenue by Region

5.2.1  Upfront Fees

5.2.2  Annual/Recurring Fees

5.3  Utility-Scale Software Revenue

5.4  C&I Software Revenue

5.5  Residential Software Revenue

5.6  Conclusions and Recommendations

6. Market Forecasts

6.1  Market Forecast Methodology

6.2  Global Market Outlook

6.3  Regional Analysis

6.3.1  North America

6.3.2  Europe

6.3.3  Asia Pacific

6.3.4  Latin America

6.3.5  Middle East & Africa

6.4  Conclusions

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

  • HVAC Transmission Linking Generation and Distribution Network
  • Illustration of HVDC System for Long-Distance Transmission of Wind Power
  • Illustration of Land Requirements for HVAC vs. HVDC Transmission
  • Annual Large-Scale Renewable Energy Additions by Generation Type, World Markets: 2016-2025
  • Annual Large-Scale Onshore Wind Additions by Region, World Markets: 2016-2025
  • Annual Large-Scale Offshore Wind Additions by Region, World Markets: 2016-2025
  • Annual Large-Scale Solar Additions by Region, World Markets: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, North America: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, Europe: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, Asia Pacific: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, Latin America: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, Middle East & Africa: 2016-2025
  • Annual Transmission System Revenue for Renewable Energy Integration by Region, World Markets: 2016-2025
  • Annual Transmission Revenue by Technology Segment, World Markets: 2016-2025
  • Percent of Cumulative Transmission Revenue by Generation Type, World Markets: 2016-2025
  • Annual Transmission Revenue by Technology Segment, North America: 2016-2025
  • Annual Transmission Revenue by Technology Segment, Europe: 2016-2025
  • Annual Transmission Revenue by Technology Segment, Asia Pacific: 2016-2025
  • Annual Transmission Revenue by Technology Segment, Latin America: 2016-2025
  • Annual Transmission Revenue by Technology Segment, Middle East & Africa: 2016-2025

List of Tables

  • Country-Level Renewable Energy and Emissions Reduction Targets
  • Top 10 Countries for Utility-Scale Wind Additions: 2016-2025
  • Top 10 Countries for Utility-Scale Solar Additions: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Region, World Markets: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, World Markets: 2016-2025
  • Annual Large-Scale Onshore Wind Additions by Region, World Markets: 2016-2025
  • Annual Large-Scale Offshore Wind Additions by Region, World Markets: 2016-2025
  • Annual Large-Scale Solar Additions by Region, World Markets: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, North America: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, Europe: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, Asia Pacific: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, Latin America: 2016-2025
  • Annual Large-Scale Renewable Energy Additions by Generation Type, Middle East & Africa: 2016-2025
  • Annual Transmission System Revenue for Renewable Energy Integration by Region, World Markets: 2016-2025
  • Annual Transmission Revenue by Technology Segment, World Markets: 2016-2025
  • Annual Transmission Revenue by Equipment Subcategory, World Markets: 2016-2025
  • Percent of Cumulative Transmission Revenue by Equipment Subcategory, World Markets: 2016-2025
  • Annual Transmission Revenue by Generation Type, World Markets: 2016-2025
  • Percent of Cumulative Transmission Revenue by Generation Type, World Markets: 2016-2025
  • Annual Transmission Revenue by Technology Segment, North America: 2016-2025
  • Annual HVAC Revenue by Equipment Subcategory, North America: 2016-2025
  • Annual HVDC Revenue by Equipment Subcategory, North America: 2016-2025
  • Annual Transmission Revenue by Technology Segment, Europe: 2016-2025
  • Annual HVAC Revenue by Equipment Subcategory, Europe: 2016-2025
  • Annual HVDC Revenue by Equipment Subcategory, Europe: 2016-2025
  • Annual Transmission Revenue by Technology Segment, Asia Pacific: 2016-2025
  • Annual HVAC Revenue by Equipment Subcategory, Asia Pacific: 2016-2025
  • Annual HVDC Revenue by Equipment Subcategory, Asia Pacific: 2016-2025
  • Annual Transmission Revenue by Technology Segment, Latin America: 2016-2025
  • Annual HVAC Revenue by Equipment Subcategory, Latin America: 2016-2025
  • Annual HVDC Revenue by Equipment Subcategory, Latin America: 2016-2025
  • Annual Transmission Revenue by Technology Segment, Middle East & Africa: 2016-2025
  • Annual HVAC Revenue by Equipment Subcategory, Middle East & Africa: 2016-2025
  • Annual HVDC Revenue by Equipment Subcategory, Middle East & Africa: 2016-2025

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