Smart grid technologies and renewables will drive investment in HVDC transmission

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That the nation's transmission infrastructure isn't ready to reap the benefits of smart grid technologies and renewable energy integration is no surprise. But a new report from Pike Research suggests high-voltage direct current (HVDC) transmission will be the big-ticket growth leader in the expansion of the transmission system over the next five years. Global investment in HVDC, according to Pike, will jump 44%, from $8.4 billion in 2010 to $12.1 billion in 2015.

Quick Take: Those numbers may surprise a few because, as Pike notes, HVDC traditionally represents only about 2% of the U.S. market. But much of the growth Pike is forecasting will come in China, where HVDC has been the favored long-distance transmission technology. Europe also uses HVDC for renewables integration and long-distance transmission. That said, Pike estimates by 2020 HVDC will represent 8% of cumulative investment in the U.S. transmission market.