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

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:

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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.

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