India HVDC Transmission Market Outlook to 2028

India HVDC TransmissionMarket Overview 

• The India HVDC (High Voltage Direct Current) Transmission market has seen growth from 2018 to 2023, driven by the increasing demand for electricity, urbanization, and the integration of renewable energy sources. In 2018, the market size was valued at USD 1.2 billion and grew to USD 2.3 billion in 2023, reflecting a robust CAGR of 13.4%.
• The key players in the India HVDC Transmission market include ABB Ltd., Siemens AG, Bharat Heavy Electricals Limited (BHEL), General Electric (GE), and Hitachi Energy. These companies are pivotal in advancing HVDC technology and expanding their footprint in the Indian market through strategic projects and collaborations.
• In 2023, ABB Ltd. announced a contract win to supply HVDC technology for a new transmission line in India. This project aims to connect renewable energy sources in the western region to the demand centers in the northern region, enhancing grid reliability and efficiency.
• The Western region of India, particularly the state of Gujarat, is the dominant player in the HVDC transmission market. As of 2023, Gujarat accounted for 25% of the total HVDC transmission capacity in India. This dominance is driven by substantial investments in renewable energy projects, with the state's solar power capacity expected to reach 20 GW by 2025.

India HVDC TransmissionMarket Segmentation

The India HVDC Transmission Market can be segmented based on technology, application and region.

By Technology: India HVDC Transmission Market Outlook to 2028 is segmented by technology into Line Commutated Converter (LCC) and Voltage Source Converter (VSC). In 2023, LCC technology dominated, due to LCC's proven efficiency in handling high power levels and its widespread use in existing HVDC projects.

By Application: India HVDC Transmission Market Outlook to 2028 is segmented by application into Intra-State and Inter-State. In 2023, Inter-State HVDC transmission projects dominated due to the need for efficient power transmission across long distances, connecting renewable energy-rich states to high-demand regions.

By Region: India HVDC Transmission Market Outlook to 2028 is segmented by region into North, South, East, and West. In 2023, the Western region dominated, due to investments in renewable energy projects and the presence of key HVDC infrastructure.

India HVDC Transmission Market Competitive Landscape 

• In 2023, ABB Ltd. secured a contract worth INR 24 billion to supply HVDC technology for a major transmission project in India. This project aims to connect renewable energy sources in the western region to demand centers in the north, enhancing grid reliability and efficiency.
• In 2023, Siemens AG completed an HVDC transmission project in Gujarat, valued at INR 20 billion. The project enhances the state's renewable energy integration capabilities, demonstrating Siemens' commitment to advancing HVDC technology and supporting India's renewable energy goals.

India HVDC Transmission Market Analysis 

India HVDC Transmission Market Growth Drivers: 

• Increasing Demand for Electricity: India's electricity demand is projected to reach 1,930 TWh in 2024, up from 1,390 TWh in 2018. This surge is driven by rapid industrialization and urbanization. The rise in demand necessitates efficient transmission systems like HVDC to handle the large-scale transfer of electricity over long distances.
• Expansion of Renewable Energy Capacity: India's renewable energy capacity is expected to expand, with solar power capacity alone projected to reach 100 GW by 2024. This growth demands robust transmission infrastructure to integrate renewable energy sources into the grid. HVDC technology, with its capability to transmit large amounts of power over long distances with minimal losses, is essential for this integration.
• Rising Industrialization and Urbanization: India's industrial output is expected to reach up to INR 120,000 billion in 2024. This industrial growth leads to increased electricity consumption and necessitates efficient power transmission solutions. HVDC systems are vital for ensuring reliable and efficient power supply to meet the rising demand in urban and industrial areas.

India HVDC Transmission Market Challenges:

• High Initial Costs: The average cost of HVDC transmission systems higher than traditional AC systems, with HVDC installation costs reaching INR 12 million per kilometer in 2023. This high cost is a barrier for many power projects, especially in developing regions where budget constraints are a significant concern.
• Technical Complexity: HVDC systems require advanced technology and expertise for installation and maintenance. In 2024, India faces a shortage of skilled professionals in the HVDC domain, impacting the implementation and operational efficiency of HVDC projects. This technical complexity poses a challenge to the widespread adoption of HVDC technology.

India HVDC Transmission Market Government Initiatives:

• Green Energy Corridor Phase II: In 2023, the Indian government launched the Green Energy Corridor Phase II, with an investment of INR 160 billion. This initiative aims to enhance transmission infrastructure to support the integration of renewable energy sources. The project includes the development of HVDC transmission lines to connect renewable energy hubs with demand centers.
• National Smart Grid Mission: The National Smart Grid Mission, launched in 2024 with an allocation of INR 50 billion, aims to modernize India's power grid infrastructure. This includes the deployment of HVDC technology to improve grid efficiency and reliability. The mission focuses on integrating renewable energy, reducing transmission losses, and enhancing grid stability.

India HVDC Transmission Market Outlook

India HVDC Transmission Market is expected to grow by 2028 along with a respectable CAGR from 2023 to 2028, driven by increasing technological advancements & expansion of online retail. 

Future Trends

• • Technological Innovations in HVDC: The next five years will witness significant technological advancements in HVDC systems, including the development of more efficient and cost-effective HVDC converters and cables. These innovations will enhance the reliability and efficiency of HVDC transmission, reducing operational costs and supporting the integration of renewable energy.
  • Expansion of HVDC Transmission Projects: India is projected to add over 10,000 kilometers of HVDC transmission lines by 2028, driven by the need for efficient long-distance power transmission. These projects will connect renewable energy hubs with demand centers, enhancing grid stability and supporting the country's renewable energy goals.