Africa High Voltage Direct Current (HVDC) Transmission Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Transmission Type (Submarine HVDC Transmission System, HVDC Overhead Transmission System, and HVDC Underground Transmission System), Component (Converter Stations, and Transmission Medium (Cables)), and Geography (Kenya, Egypt, Algeria, and Rest of Africa)

Market Snapshot

Market Summary- Africa High-Voltage Direct Current (HVDC) Transmission Systems Market
Study Period: 2016 - 2026
Base Year: 2020
CAGR: >3.6 %

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Market Overview

The market for high voltage direct current (HVDC) transmission systems in Africa is expected to grow at a CAGR of more than 3.6% during the forecast period of 2020 – 2025. Factors such as increased penetration of renewable energy, rural electrification, and increased deployment of the smart grid network are expected to drive the market over the forecast period. However, the growing demand for distributed and remote power plants that provide electricity in rural areas without the need for large transmission & distribution infrastructure is expected to hinder the growth of the HVDC transmission systems market in the coming years.

  • Transmission medium (cables) is expected to witness significant growth over the forecast period, as HVDC cables offer many technical advantages such as lower losses, improved system stability, and enhanced reliability.
  • The growing energy demand, as well as the growth of the renewable energy sector in Africa, is expected to create significant opportunities for the HVDC transmission systems market in the near future.
  • Egypt is expected to drive the market demand in Africa, due to its significant development of grid infrastructure over the forecast period.

Scope of the report

The Africa high voltage direct current (HVDC) transmission systems market report include:

Transmission Type
Submarine HVDC Transmission System
HVDC Overhead Transmission System
HVDC Underground Transmission System
Component
Converter Stations
Transmission Medium (Cables)
Geography
Kenya
Egypt
Algeria
Rest of Africa

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Key Market Trends

Transmission Medium (Cables) to Witness Significant Demand

  • HVDC cables play an important role in a growing number of HVDC links. While the fixed costs of terminals at both ends of HVDC links are more expensive than AC, the cost per unit length of the line itself is lower. With all the other things being equal, the longer the distance of the link, the lower the relative cost of the link per unit of energy.
  • Over a break-even distance (approximately 600-800 km for current technologies), HVDC becomes the lowest cost option. Also, there are no technical limits to the potential length of an HVDC cable. In a long AC cable transmission, the reactive power flow, due to the large cable capacitance, will limit the maximum possible transmission distance. With HVDC there is no such limitation.
  • On Jan 19, 2020, Sub-Saharan Africa continued to report internet and data access issues following accidental cuts of the undersea West Africa Cable System (WACS) that runs along the coast.
  • One of the notable projects in Africa is the Kenya-Ethiopia Electricity Highway. This under-construction bipolar 500 kV HVDC line will originate from Welayta Sodo in Ethiopia and terminate in Suswa, with its total length of approximately 1068 km, out of which 437km will be in Ethiopia and the remaining 631km in Kenya. The project will incorporate two AC/DC converter stations at both ends and is expected to be commissioned in 2020.
  • Also, the Kenya-Ethiopia Electricity Highway project is financed by the African Development Bank, the French Development Agency, and the World Bank.
  • Some of the major HVDC lines in this region are Inga - Kolwesi in DRC (580MW, 1700 km, in operation since 1982), Cahora Bassa, connecting Mozambique and South Africa (1920 MW, 1420 km, in operation since 1979), and Caprivi Link, connecting Namibia and Zambia (300 MW, 950 km, in operation since 2010).
  • All these projects are ready for an extension, and various new HVDC lines are under consideration in the region. The projects include HVDC transmission lines from DRC hydropower Grand Inga to South Africa, Zambia to Namibia, and CESUL Hydro, Mozambique Project.
  • Therefore, the development of HVDC transmission projects is expected to drive the market for HVDC cables in Africa during the forecast period.
Africa HVDC Transmission Systems Market- Electricity Generation

Increasing Demand from Egypt to Drive the Market

  • Egypt is expected to drive the HVDC transmission system market in Africa compared to other countries due to its significant development in grid infrastructure. However, HVDC transmission has not gained pace yet, with very few projects under construction in the country.
  • Egypt and Cyprus agreement can be considered as significant project, which was signed in May 2019, to commission and construct the EuroAfrica Interconnector. The project is expected to cost around EUR 2 billion and is expected to be laid partially under a subsea level.
  • The Egypt-Cyprus interconnection is expected to be completed in two phases. The first phase is expected to be a transmission capacity of 1000 megawatt (MW) and the second phase will have an additional transmission capacity of 1000 MW. The project is estimated to be completed by 36 months from the day of the beginning.
  • In Feb 2020, Egyptian Electricity Transmission Company (EETC) has invited 7 companies to participate in the tender for the construction of the electrical grid link with Saudi Arabia. The on-going stage is expected to witness the completion of the tenders that were put forward for the electrical linkage project. These tenders will be agreed separately, and all contracts are expected to be signed by the end of May 2020.
  • Investments for the Saudi-Egyptian electrical link amount to USD 1.6 billion, with Saudi Arabia contributing USD 1 billion. Each country bears the value of the work done on its lands.
  • The number of people without access to electricity, which peaked at 610 million in 2013, declined slowly to around 595 million in 2018. Much of this dynamism has been in East Africa, as Kenya, Ethiopia and Tanzania accounted for more than 50% of those gaining access.
  • Also, Egypt is expected to sign a new contract on May 2020, with Saudi Arabia, for developing a 500kV grid interconnection project between the two countries.
  • Therefore, based on the projects mentioned above, Egypt is likely to drive the HVDC transmission systems market in Africa in the coming years.
Africa HVDC Transmission Systems Market- Proportion of Population with Access to Electricity

Competitive Landscape

The market for high voltage direct current (HVDC) transmission systems in Africa is consolidated, with the presence of key players, including ABB Ltd., Siemens AG, Toshiba Corporation, General Electric Company, and Mitsubishi Electric Corporation.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast, in USD billion, till 2025

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Transmission Type

      1. 5.1.1 Submarine HVDC Transmission System

      2. 5.1.2 HVDC Overhead Transmission System

      3. 5.1.3 HVDC Underground Transmission System

    2. 5.2 Component

      1. 5.2.1 Converter Stations

      2. 5.2.2 Transmission Medium (Cables)

    3. 5.3 Geography

      1. 5.3.1 Kenya

      2. 5.3.2 Egypt

      3. 5.3.3 Algeria

      4. 5.3.4 Rest of Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 ABB Ltd.

      2. 6.4.2 General Electric Company

      3. 6.4.3 Siemens AG

      4. 6.4.4 Schneider Electric SE

      5. 6.4.5 LS Industrial Systems Co Ltd

      6. 6.4.6 Mitsubishi Electric Corporation

      7. 6.4.7 Prysmian SpA

      8. 6.4.8 Toshiba Corporation

      9. 6.4.9 Doble Engineering Co

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Africa High-Voltage Direct Current (HVDC) Transmission Systems Market market is studied from 2016 - 2026.

The Africa High-Voltage Direct Current (HVDC) Transmission Systems Market is growing at a CAGR of >3.6% over the next 5 years.

ABB Ltd. , Siemens AG , General Electric Company , Toshiba Corporation , Mitsubishi Electric Corporation are the major companies operating in Africa High-Voltage Direct Current (HVDC) Transmission Systems Market.

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