Annual global spending on transmission system infrastructure for large-scale renewable energy integration is expected to grow from USD 36.7 billion in 2016 to USD 46.7 billion in 2025, according to a new report from Navigant Research.
The nature of a country’s existing power system and regulatory framework influencing infrastructure investment choice, Navigant pointed out.
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 market research and consulting company said.
“Rapid development of wind and solar resources is driving investment in transmission systems around the world,” said Jessica Lewis , senior research analyst with Navigant Research. “This is true in countries with mature power sectors that are shifting to a more renewable-heavy generation mix, and also in countries with emerging power sectors that are building out their grids to meet rising demand.”
When planning transmission system extensions triggered by new renewable capacity, factors to take into consideration include generation type (e.g., wind, offshore wind, or solar), plant size, and distance from the grid. In addition, the nature of the existing power system, combined with the local regulatory environment, is expected to influence the type of infrastructure investment different countries make to accommodate new renewable generation in the years ahead, according to the report Transmission System Upgrades for Renewable Energy Integration.
The report examines the market for transmission system technologies required to integrate large-scale renewable energy generation. The primary technology segments analysed 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.