The global submarine electricity transmission market is expected to grow from $16.8bn this year to $24.8bn in 2024, according to a new report.
The study from Navigant Research finds that today, submarine electricity transmission systems are being used more frequently for long and short hauls in undersea, lake, and river interconnection applications, allowing transmission in areas where water has made underground or overhead solutions impossible.
The report states that there are at least 140 new high-voltage direct current (HVDC) and high-voltage alternating current (HVAC) systems currently being deployed or in the planning stages, and predicts that “this highly specialized market is expected to experience rapid growth in the near future”.
James McCray, senior research analyst with Navigant, said: “Over the past several years, two market drivers have emerged as dominant forces shaping this market: connecting offshore wind generation to the mainland and reconfiguring or expanding interconnections between states, countries, and regions.
“Submarine technologies are helping to address changing electric generation mixes and isolated national grids are also being interconnected for security, balance, and the sale of excess electricity in cross-border exchanges.”
According to the report, Europe’s transmission system currently needs “extensive reconfiguration and expansion to deal with coal and nuclear generation plant retirements and the rapid growth of offshore and onshore wind generation in the Nordic region, as well as in other remote offshore areas”
It states that because of this, “the European market, which currently represents more than 70 per cent of regional market share, will likely account for more than half of the global submarine cable projects during the next decade”.