Saudi Arabia HVDC Transmission Market Analysis

Saudi Arabia HVDC Transmission Industry Analysis

Component Insights

• Converter stations are the largest category in the Saudi Arabian HVDC transmission system market, with a share of 30% in 2024. This is because the converter station serves as the terminal equipment for a high-voltage direct current transmission line, converting direct current to alternating current. Conversely, at conventional power stations that run on fossil fuels, these stations change the AC to DC for long-distance transportation at high voltages.
• The converter station connects the AC input and DC output, converting HVAC to HVDC and vice versa. As Saudi Arabia's urbanization projects progress, the demand for transferring current from power grid stations to urban areas will grow.
• Cables also hold a significant share in this market as they are used for the transmission of electricity from power stations to commercial, industrial, and residential sectors. With the ongoing setup of more power plants and the construction of infrastructure in Saudi Arabia, there is a huge scope for this category.

The components included in this report are:

• Converter Station (Largest and Fastest-Growing Category)
• Converter Unit
• Converter Valve
• Converter Transformer
• Filter
  • AC
  • DC
• Reactive Power Source
• Smoothing Reactor
• HVDC System Pole
• Cable
• Cable Tower
• Others

Technology Insights

• Voltage source converters (VSC) will hold the larger market share of 65%, in 2024, and they will be the faster-growing category in this market at a CAGR of 5.4% in the forecast years. This technology is extensively used in HVDC systems as it provides resilience to commutation failure and reactive power control.
• Moreover, the VSC system provides faster power flow control and an independent power control system over the other HVDC systems.
• To generate renewable energy, Saudi Arabia is moving toward solar power plants, including the Sakaka solar power plant. The VSC system plays an important role in environmental sustainability as it can be integrated with renewable energy sources.
• Larsen & Toubro plans to build a 525-kV HVDC line using VSC technology to connect NEOM industrial city with Yanbu city in western Saudi Arabia.

The technologies included in this report are:

• Capacitor Commutated Converter (CCC)
• Voltage Source Converter (VSC) (Larger and Faster-Growing Category)

Transmission Insights

• Overhead transmission lines are the largest category, generating about around 50% revenue in 2024. It is easier to use and install power lines overhead than underground and under the seabed; therefore, it requires less work to install, detect faults, and maintain.
• Overhead lines are suspended across transmission towers, and there is no need for insulation on them, which is much more cost-effective.
• Furthermore, the Saudi Electricity Company has mentioned that the country has ultra-high-voltage lines of 1,408.31 km (230–380 kV) and 575.67 km (110–132 kV) in 2021.
• Underground transmission lines are the fastest-growing category in this sector. As with major development projects in Saudi Arabia, overhead transmission lines may have an ill impact on the visual landscape.

The transmissions included in this report are:

• Overhead (Largest Category)
• Underground (Fastest-Growing Category)
• Submarine

Architecture Insights

• During the forecast period, the point-to-point architecture is expected to dominate this market.
• Energy producers employ the point-to-point architecture to connect HVDC systems over long distances for electricity transmission.
• This is due to the need to transmit the electricity over the transmission line, which needs an AC filter and a DC filter to prevent the HVDC converter from injecting all its harmonic output into the AC and DC systems.
• Moreover, the dependence on transmitting heavy power loads on the HVDC transmission system further drives the market in this category.

The architectures included in this report are:

• Back-to-Back
• Point-to-Point (Largest and Fastest-Growing Category)
• Multiterminal