Over the years, high-voltage direct current (HVDC) demand in the APAC region has grown due to the need for long-distance transmission to industrial centres. China, India, South Korea, and Japan have been the major drivers of this demand.

Recently, these countries have set ambitious renewable energy targets for 2030, increasing the need for HVDC infrastructure to integrate renewable sources like offshore wind, onshore wind, solar, and hydropower into national grids.

HVDC is becoming more popular than traditional HVAC technology among transmission system operators due to its efficiency and cost-effectiveness for long-distance renewable energy transmission. As per the assessment of Power Technology Research, the APAC HVDC market is expected to grow significantly.

As of 2024, China leads the APAC market with 290 GW of installed HVDC capacity, followed by India with 33 GW, South Korea with 10 GW, and Japan with 7.3 GW.

China’s dominance is attributed to rapid renewable energy expansion and extensive growth of its electrical transmission network.

Why is HVDC Replacing HVAC

The HVDC technology is rapidly gaining traction in long-distance and renewable integration projects across the globe.  The transmission systems operators prefer HVDC over HVAC in the new transmission expansion projects for the following two reasons.

Firstly, HVDC systems are more efficient over long distances due to lower energy losses during transmission. HVDC becomes more cost-effective than HVAC once the breakeven distance is surpassed, which is around 800 to 1,000 km for overhead lines, 50 to 100 km for offshore wind interconnections, and 25 to 50 km for subsea interconnections.

HVDC cables require less material and need only one power line to transport electricity, whereas HVAC links need three lines to carry the same power. Additionally, HVDC lines use less space for their right of way compared to HVAC lines. The capacitance between HVAC conductors and the surrounding environment restricts cable length, leading to inefficiencies over long distances. This makes HVDC advantageous for renewable energy projects located far from urban centres.

Secondly, HVDC allows for better integration of diverse renewable sources, such as wind and solar farms spread across large geographic areas, by efficiently managing fluctuating power outputs and maintaining grid stability. Lastly, HVDC technology enables interconnection between asynchronous grids with different frequencies, facilitating the establishment of larger, interconnected grids capable of balancing supply and demand more effectively across regions.

Key Factors Driving HVDC Demand

Renewables Adoption in the APAC Region

In APAC, a significant increase in renewable energy generation is anticipated as countries in the region have set ambitious targets for 2030. The installed capacity of renewables is expected to rise from 900 GW in 2023 to nearly 2,700 GW by 2030. China will lead this growth, aligned with its 14th Five-Year Plan (FYP) and National Development and Reform Commission (NDC) goals, adding nearly 1,200 GW of renewable capacity by 2030.

Beyond China, the rest of APAC countries plan to add approximately 463 GW of renewable capacity by 2030, with India being a key contributor. Onshore wind and utility-scale solar will dominate the renewable energy mix, accounting for nearly 88 per cent of the total generation by 2030. Offshore wind is also set to expand significantly in markets such as China, Taiwan, Japan, and South Korea.

This significant growth in renewables requires substantial investments in transmission infrastructure to integrate offshore renewables into the power grid efficiently and to transmit electricity from onshore renewables over long distances. Consequently, the HVDC market is expected to grow in the APAC region to meet these renewable energy targets.

Long-Distance Transmission Driven by Onshore Renewables

In the APAC region, the demand for long-distance transmission is increasing as countries scale up their conventional and large utility-scale renewable energy projects.

Nations like Australia, India, and Japan are expanding their renewable energy capacities, such as solar and onshore wind farms, often located in remote areas.

This necessitates a robust transmission infrastructure to transport electricity efficiently across vast distances. Additionally, cross-border transmission is becoming crucial for energy security and regional cooperation, as seen in projects like the ASEAN Power Grid linking Southeast Asian countries.

For instance, South Korea and China plan to build a cross-border interconnection allowing 2,000 MW of clean energy transfer, which will further connect to Japan as part of the Asian Super Grid initiative by 2030. These developments highlight the growing importance of HVDC long-distance transmission to ensure a reliable and sustainable energy supply across the region.

Advancements in the Offshore Wind Sector

As of 2023, offshore wind accounts for a relatively small share of the renewable generation mix but is projected to grow its share, reaching 6 per cent, in the APAC region by 2030.

Countries including China, Taiwan, Japan, and South Korea have ambitious plans to increase their offshore wind capacities by 2030 significantly.

These advancements underline the region’s commitment to enhancing its renewable energy infrastructure and reducing carbon emissions, positioning APAC as a significant player in the global offshore wind market.

These offshore wind developments are expected to drive the demand for HVDC Voltage Source Converter (VSC) technology. HVDC VSC technology is rapidly gaining preference over HVAC technology in the APAC region due to its efficiency and suitability for integrating large-scale offshore wind projects.

It is anticipated that the majority of the planned offshore wind projects will be integrated using HVDC VSC technology.

Transmission Upgradation Requirement

As nations across the APAC region set ambitious renewable energy targets for 2030, integrating these renewables into the national grid presents significant challenges for TSOs. The aging transmission infrastructure in many APAC countries contributes to higher failure risks, increased maintenance costs, and limited capacity to handle growing electricity demand and renewable integration.

To address these bottlenecks, TSOs are making substantial investments in both new transmission infrastructure and upgrades to existing systems. One of the key technologies being favoured is HVDC over HVAC for new overhead line transmission projects.

This preference is driven by HVDC’s greater efficiency and ability to transmit large amounts of power over long distances with lower losses, which is particularly important for integrating distant onshore and offshore wind resources. In countries like India and China, the preference for HVDC technology is especially pronounced.

These countries are rapidly deploying HVDC transmission networks nationwide to ensure reliable integration of renewables and conventional power resources into the grid.

Key HVDC Projects in the APAC

China

Upcoming notable projects in China include the Hami – Chongqing Project, a pumped-storage hydroelectric project coupled with the construction of a power transmission initiative linking Hami in the Xinjiang Uygur Autonomous Region to Chongqing Municipality, aimed at facilitating 8 GW of energy transfer over long-distance. Grid operators, such as China Southern Power Grid (CSG) and State Grid Corporation of China (SGCC), are spearheading efforts to modernise the nation’s electric grid infrastructure. Recently, SGCC has also collaborated with a Malaysian Utility company, Tenaga Nasional Berhad (TNB), to enhance the ASEAN Power Grid (APG) HVDC infrastructure.

India

India leads with over 60 per cent of planned HVDC transmission in APAC after China, due to renewable energy expansion. The recently announced Ladakh HVDC Project, also known as Green Corridor for reliable power supply of electricity generated through solar and battery energy storage system, aims to construct a 480 km line carrying 5 GW of energy between Ladakh and Haryana to ensure a reliable power supply in the region. Moreover, the transmission capacity expansion projects including PK 2000 (Pugalur – Thrichur) and RAIGARH – PUGALUR Pole 2 added nearly 3500 GW in the last two years.

Australia

In Australia, HVDC is being deployed to transform the country’s electricity grid and allow the transmission of clean energy over long distances. Some of the key projects in the pipeline include Marinus Link, spanning an approximately 345-kilometre cable route, which will enable Tasmania to import surplus solar and wind energy generated in Victoria. The other Australia Asia Power Link is a cross-continental interconnection between Australia and Singapore exporting 3,200 MW of solar energy.

Other key countries

On the other hand, several nationwide projects in both South Korea and Japan are in the pipeline to allow renewable energy expansion, mainly offshore wind. Last year, projects such as Saemangeum Station HVDC, Jeju Island Interconnection, and East Korea – Seoul HVDC (Shinhanul-Shingapyeong) collectively contributed to a substantial increase of around 6.2 GW in energy transfer capacity in South Korea. While in Japan, J-POWER Transmission Network Co., Ltd. has taken the initiative to deploy submarine HVDC cables in the country for renewable integration; a few notable projects include the Noshiro – Imabetsu and the Chubu – Kansai HVDC Link.

Technological Trends in HVDC

Historically, the HVDC market in the APAC region has been dominated by HVDC LCC technology. At present, LCC HVDC accounts for 72 per cent of the annual installed capacity, driven largely by the commissioning of major projects in India and South Korea. However, the market dynamics are shifting. According to planned projects and PTR’s market estimations, VSC HVDC is expected to dominate annual capacity additions by the next couple of years, accounting for nearly 67 per cent of the annual HVDC capacity.

HVDC VSC technology has seen significant technology advancements, attaining increased power handling capacity and higher operating voltage ratings. These technological advancements make VSC HVDC suitable for long-distance transmission projects and offshore wind integration, offering more flexibility and efficiency compared to HVDC LCC.

The adoption trend of HVDC VSC originated in China in the APAC region. HVDC VSC has been deployed in China for more than a decade. However, the adoption of HVDC VSC was not that prominent in the past years, as most of the projects deployed in the last five years were mostly HVDC LCC. However, HVDC VSC projects have been commissioned in recent years, and more HVDC VSC has been announced to be deployed in the coming years. Recently, China has made significant strides, exemplified by the commissioning of the world’s first multiterminal VSC HVDC project at Zhangbei. This project highlights China’s growing investment and confidence in VSC HVDC technology.

The HVDC market in the APAC region is primarily driven by countries expanding their transmission capabilities to transport power over long distances to urban centres and incorporating their renewable energy targets. While the early stages of development favour HVDC-LCC due to cost efficiency, future growth is expected in HVDC-VSC as countries aim to enhance energy security and reduce electricity costs through cross-border interconnections. As renewables gain prominence in the energy mix, HVDC technology is anticipated to play a pivotal role in facilitating their integration across the region.