Shunt Reactor Market Size

Shunt Reactor Market Analysis

The Shunt Reactor Market is expected to grow at a CAGR of 6.1% over the forecast period (2021-2026). The need to increase the system's efficiency and provide reliable power is increasing the demand for a shunt reactor. The requirement for protection solutions for sudden voltage spikes and investments into upgrading existing transmission and distribution networks is also augmenting the demand for shunt reactors. The increasing demand for power will drive the demand for products, solutions, and services allied to the energy sector. Shunt reactor demand for the energy and utility will grow considerably in the coming years in-mid of increasing electricity demand and connectivity projects undertaken by various governments globally.

• For instance, the Ministry of Energy of the Republic of Lithuania has undertaken a project to synchronize the electricity network with the grid of Western Europe. This project will reduce electric power transmission capacities with Belarus and prevent the flow of electricity from the unsafe Astravets Nuclear Power Plant (NPP) in the future. In implementing the North-East Lithuanian reconstruction project, two 330 kV transformer substations in Ignalina and Utena will be reconstructed. A 330 kV-controlled shunt reactor will be moved from the Ignalina substation to the 330 kV switchyard in Elektrėnai.
• The growing energy demand in the industrial sector is another prominent influencer behind the incorporation of shunt reactors in power generation facilities in the region. For example, a second 330 kV shunt reactor of the Belarusian nuclear power plant was commission in April 2020. The equipment's adoption is for the overhead power lines, with the nominal voltage of 330 kV representing the primary source of reactive power. The continued participation of Siemens in SINCRO.GRID project has enabled the company to supply various shunt reactors to grid development projects in Europe. In Croatia, the company was able to install a 100 MVAr variable shunt reactor at the Mraclin substation.
• In February 2020, global electrical engineering firm W.E.G. announced the signing of an agreement with Transformadores e Serviços de Energia das Américas S.A. (TSEA) for the acquisition of one of its transformer factories located in the city of Betim, State of Minas Gerais, Brazil. The factory sits on 32,500 square meters of manufacturing facilities, equipment, and machinery. The factory is specialized in the manufacture of power transformers, shunt reactors and power autotransformers with voltage class up to 800kV and power ratings up to 500MVA.
• In September 2019, Kuwait's Ministry of Electricity of Water (MEW) invited a total of nine qualified Contractors to submit their proposals to undertake the execution of the maintenance and repair works at various 400kV, 300kV, 132kV Substations. The project scope of work involves maintenance and repair of following major equipment, and its associated equipment includes shunt reactors with voltage levels 300kV, 132kV, 33kV. Kuwait based Construction Company, United Gulf Enterprises General Trading & Contracting. Co. W.L.L. (UGETCO) has submitted the lowest bid of KWD 123.1 million.
• With the recent outbreak of COVID 19, the shunt reactor market is expected to face marginal decline due to the lockdown policies being adopted by the various governments worldwide. In April 2020, the Chinese power transmission network operator State Grid Corporation of China (SGCC) resumed construction on the 800kV, 800MW ultra-high voltage (U.H.V.) direct current (D.C.) power transmission project between Yulin, Shaanxi province and Wuhan, Hubei province after the lockdown was imposed in the region.