Global Static VAR Compensator (SVC) Market - 2022-2029

Global Static VAR Compensator (SVC) Market - 2022-2029

Market Overview

The global static VAR compensator (SVC) market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

A static Var Compensator is a shunt-connected Var generator or absorber whose output is altered to exchange capacitive or maintain specific parameters of the electrical power system. SVC is mainly based on thyristors without gate turn-off capability. The operating principle and characteristics of thyristors realize the SVC variable. The static VAR compensator does not have any rotating parts and is employed to compensate surge impedance by sectionalizing a long transmission line.

In general, SVC cannot be operated at the line voltage levels. Some transformers are needed to step down the transmission voltage levels. It decreases the equipment and the device's size necessary for the compensator even though the conductors are needed to manage the extended levels of currents linked to the minimum voltage. Whereas in a few of the static VAR compensators used for commercial applications like electric furnaces, where there can be prevailing mid-range of bus bars are present. The SVC is customized to match each customer with their specific needs. The SVC consists of several fixed or switched branches, of which at least one branch includes thyristors and the combination can be varied a lot depending on requirements.

Market Dynamics

The global static VAR compensator (SVC) market is expected to boost with the rising demand for renewable systems to deliver dynamic voltage.

Rising demand for renewable systems to deliver dynamic voltage

Several countries are moving towards aggressive renewable energy goals. As more renewable energy sources come online, more conventional sources (e.g., natural gas, coal, etc.) will be taken offline. The renewable sources lack automatic frequency response mechanisms like those in rotating thermal turbine generators. Static Var Compensators mimic the action of rotating thermal turbines, delivering the ability to respond within milliseconds to reactive power transients on high-voltage electrical transmission lines. The devices have been installed worldwide and have seen use in the U.S.

Electricity transmission network providers are tasked with adding further renewable energy resources to the power grid. The demand for static VAR compensators is growing to control voltage fluctuations and enhance power quality and efficiency. The power grid continues to evolve, especially as transmission system operators look to integrate intermittent renewable resources into the electricity supply. Static VAR compensators are used as a means to suppress voltage fluctuations. SVCs deliver dynamic voltage support and help maintain the efficiency and reliability of the power supply. The technology is being integrated into existing and new power infrastructure, helping reduce the investment required to build new network extensions.

Due to the increase in wind energy, the Transmission System Operators put grid code requirements on the wind parks to assure grid stability, such as reactive power control and ride-through capability. A centrally placed SVC at the Point of Common Coupling is used to solve these issues in wind farms and has various benefits, such as Voltage Stabilization, Reactive Power Balance, Fault Ride Through and Flicker Reduction.

The heavyweight factor and dangers such as leakage and explosion restraint the global static VAR compensator (SVC) market

The presence of alternatives will hamper the growth of the Static Var Compensator market. Static Var Compensator and Static Synchronous Compensator (STATCOM) are essential equipment of reactive compensation, compared in voltage supporting, damping low-frequency oscillation, enhancing the transient stability and transmission limit. Single SVC and STATCOM are restricted in voltage supporting after fault occurrence, but STATCOM is better than SVC.

STATCOM is better than SVC in improving the transmission limit and transient stability. STATCOM is better than SVC on the damping low-frequency oscillation as both have the same capacity and perform as they have the same controllable capacity. The results indicate that dynamical response speed affects the control result slightly though STATCOM responses are much faster than SVC.

COVID-19 Impact Analysis

The COVID-19 response requires organizations to review the ICT infrastructure to sustain working from home. It is a function of the maturity of the digitalization of the IT and Operational Technology system’s ability to absorb work from home for some business and mission-critical processes. The lightly loaded conditions associated with a pandemic require a review of the existing reactive management to sustain the reliability and security of a power system (such as the deployment of static VAR compensators, reactors, capacitors and switching high voltage lines out of service).

Due to lockdown, many technical issues are observed in the power networks, including frequency and voltage unbalance, modification of duck curve, overloading of a substation, etc. To maintain the smooth operation of the power systems, the liable agencies, for example, POSOCO, initiated disaster management planning, including many initiatives. The sudden load reduction during lockdown caused overvoltage in Transmission and Distribution Networks. Dynamic voltage control occurs at the interconnection and the transmission level. Regional Load Despatch Centers made various precautionary measures to prevent the overvoltages during the lockdown period, like putting the reactors into service for overvoltage control to keep the grid stability and keeping voltage control mode for Static VAR Compensators.

Segment Analysis

The global static VAR compensator (SVC) market is segmented based on type, component, end-user and region.

Rising demand for static VAR compensator to support various loads with diverse requirements on power quality in mines

Operating a mine is a complex task that requires careful planning to secure a high equipment availability and a stable production rate without costly production outages. A challenging part is the mine’s electrical network. The network should support various loads with diverse requirements on power quality. As mines get larger and more remote, voltage support becomes critical. The SVC improves network stability and reliability, resulting in an efficient mine process. The Static Var Compensator offers dynamic voltage support and makes mining possible in remote locations with weak grids. The SVC mitigates system disruptions and enables increased productivity by stabilizing the system voltage. In short, the SVC is a device that can dynamically control the reactive power voltage and flow in an electrical network.

Traditionally, harmonic filter banks were used to compensate for the inductive loads of the site. However, there are limiting factors restraining the performance of the installations. The scarcity of dynamic response of the filter banks cannot counteract the fast variations in reactive power. The over-voltage risks restrict the size of the filters, leading to a low utilization rate and low power factor of the mining equipment. A weak grid combined with heavy loads, harmonic emissions and a cable network cause problems with power quality. By stabilizing the voltage and using the harmonic filtering capabilities of the SVC, many of the problems can be solved. The SVC will improve and safeguard the production capability.

Geographical Analysis

Growing investments in the countries that promote the static VAR compensator will boost the sales in Europe

Static var Compensator is a consolidated technology for power quality improvement. It has been widely used in voltage regulation in transmission and medium-voltage distribution grids, for which there are many standards available in Europe to test, model and specify it. Additional applications for the SVC have been offered, such as load balancing and its integration with low-voltage microgrids and distributed generation. UK steelmakers and other energy-intensive sectors will be able to bid for a share of US$300 million in government investment to help to reduce their carbon emissions and the cost of their energy bills. The IETF expansion is one of the various government initiatives to assist the steel industry in modernization and decarbonization.

In this first phase, running from 2020 to 2021, Celsa Manufacturing obtained a grant for its Cardiff steelworks to install a VAR compensator for high voltage electric arc furnace, which will enable the 1.2 million mt/year capacity in its production while consuming the same energy as previously. The Celsa project will enable increased domestic scrap processing in what is a beneficial project to the UK since currently 7-8 million mt of UK scrap is exported and processed, then reimported needlessly, according to a BEIS statement.

Competitive Landscape

The global static VAR compensator (SVC) market is extremely competitive and expected to rise in the forecast period. Players in the market include General Electric, Rongxin Power Electronic Co., Ltd, ABB Ltd, Siemens AG, American Electric Power, Eaton Corp plc, Hyosung, NR Electric Co. Ltd. and Mitsubishi Electric Corp., American Superconductor Corp, among others. The major players in the market are known to incorporate numerous market strategies to achieve growth in the global static VAR compensator (SVC) market; these include acquisitions, product launches, mergers, contributions and collaborations.

General Electric

Overview: General Electric Company is a multinational organization operating for more than 125 years. GE is best known for its work in the Power, Aviation, Renewable Energy and Healthcare industries. Grid Solutions, a GE Renewable Energy business, delivers products to customers globally with over 13,000 employees. The company provides power utilities and industries with equipment, systems and services for power reliably and efficiently from the generation to end power consumers. Grid Solutions is focused on the challenges of the energy transition by providing the reliable connection of renewable and distributed energy resources.

Product Portfolio:

Static VAR Compensator: GE’s Static Var Compensator solutions are a cost-effective means to provide dynamic voltage support and keep the reliability and efficiency of the power supply. The solutions are reliable, easy to integrate into existing and new infrastructures and reduce the investment in building new network extensions.

The company offers a broad range of SVC configurations with 2 types of SVC design, classic and Main Reactor and every solution is customized to the utility's technical and economic requirements.

Key Development: In 2019, GE's Grid Solutions business announced its recent Flexible AC Transmission System contract win with Statnett. Norway boasts one of the most sophisticated energy infrastructures globally. GE's Static Var Compensator technology will be utilized for the existing SVCs at Rød and Verdal substations.

Why Purchase the Report?

To visualize the global static VAR compensator (SVC) market segmentation by type, component, end-user and region and understand key commercial assets and players.

Identify commercial opportunities in the global static VAR compensator (SVC) market by analyzing trends and co-development.

Excel data sheet with numerous data points of static VAR compensator (SVC) market-level with four segments.

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The global static VAR compensator (SVC) market report would provide approximately 61 tables, 60 figures and almost 211 pages.

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