Submarine power transmission to hit $25bn
More wind power and regional interconnections will push market up by 50% by 2024.
The rise of windpower and more regional interconnections will push the value of the global submarine electricity transmission market to around $25bn within the next decade, according to a new report.
Revenues will grow by around 50% from $16.8bn in 2015 to $24.8bn in 2024, Navigant Research says.
“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,” says James McCray, senior research analyst with Navigant Research.
“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.”
Due to pressing interconnection needs, Europe currently represents the largest market for this solution, the report finds.
Europe’s transmission system currently requires 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.
Because of this, the European market, which currently represents more than 70% of regional market share, will likely account for more than half of the global submarine cable projects during the next decade.