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Capex on Transmission: Global Trends and Planned Investment [free access]

August 21, 2019

Global Transmission Research recently analysed past trends and future investment plans in the power transmission sectors of 75 countries.

 

During 2009–18, the 75 countries spent around 79 per cent of their total investment in the transmission sector on building new transmission facilities. Another 19 per cent was spent on replacement and upgrade of existing transmission assets and the remaining 2 per cent was invested in other grid-related activities such as information and communication technology (ICT) infrastructure, supervisory control and data acquisition (SCADA), smart grid technologies, control centres, research and development (R&D) initiatives related to transmission, etc.

 

It has been estimated that during 2019–28, 76 per cent of the total investment in the transmission sector will be on building new transmission facilities, representing a decline of 3 per cent from the past decade. Investments to replace and upgrade existing transmission assets will remain the same (i.e., 19 per cent). The remaining 5 per cent will be spent on other grid-related initiatives such as ICT, SCADA, R&D, smart grid, etc.

 

 

Figure 1: Capital expenditure on transmission by category for 2009–18 (%)

 

Source: Global Transmission Research

 

Figure 2: Expected capital expenditure on transmission by category for 2019–28 (%)  

Source: Global Transmission Research 

 

During 2009–18, half of the total capital expenditure was on construction of transmission lines while 43 per cent was spent on construction of substations and the remaining 7 per cent was spent on other activities such ICT infrastructure, SCADA, smart grid technologies, control centres, R&D initiatives related to transmission, etc.

 

Going forward, during 2019–28, the investment in transmission lines is expected to increase by 6 per cent to reach 56 per cent. However, the share of  substation-related projects will be 39 per cent, a decline of 4 per cent as compared to the past decade. Around 5 per cent is estimated to be spent on the above-mentioned other  grid  activities, representing a 2 per cent decline.

 

Figure 3: Capital expenditure on transmission network by type for 2009–18 (%)

  

Source: Global Transmission Research

Figure 4: Capital expenditure on transmission network by type for 2019–28 (%)

Source: Global Transmission Research

 

To get more insights on past and future capital expenditure trends in the global electricity transmission market, visit our webpage: https://www.globaltransmission.info/report_utility_transmission-investment_report_2019-2028.php