Mountain View, Calif., July 11, 2011 – As wind farms are remote and located far from the centers of demand, there is need for a new transmission network that can effectively transmit power with minimum losses. In 2010, the United States added about 5,115 MW of installed wind capacity, creating a huge market for high voltage transmission technologies.
New analysis from Frost & Sullivan, North American High Voltage Transmission Technologies Market, finds that the market earned revenues of $9.74 billion in 2010 and estimates this to increase to $15.9 billion in 2012.
By 2010, the North American installed wind power capacity had grown by 15.1 percent, despite the economic slowdown. According to the Department of Energy‘s recent report, wind energy is expected to account for 20 percent of the country’s energy mix by 2030, which will result in an investment of $60 billion in new wind power transmission projects.
While FACTS’ benefits are obvious, the slow returns on investments in transmission lines infrastructure will still deter investors. FACTS is a high-cost investment, with a static volt-ampere-reactive compensator costing up to $20 million.
Efforts to lower initial costs of investment and conversion losses are expected to result in higher uptake of FACTS and HVDC technologies, especially since utilities are looking to achieve lifecycle cost savings through the implementation of high voltage transmission technologies.