wiredinUSA December 2011

INDEX

Submarine projects may face delays

Underwater power transmission is a vital part of infrastructure plans around the world, as renewable power sources become available. The opportunities for grid interconnections, and connecting offshore wind farms to landmasses, for example, have led grid operators to implement submarine power transmission cables to supplement or replace aging and inadequate grid infrastructures. According to a recent report from Pike Research, submarine transmission cable projects will increase from just over 60 worldwide in 2011 to over 350 cables by 2020, placing significant pressure on the existing industry. “Unfortunately, the supply chain for high-voltage submarine cables is not ready for the exploding demand for these products,” said Pike Research president Clint Wheelock. “Only a few manufacturers in the world

are capable of producing high-voltage submarine cables, and purchasers have few other places to turn when manufacturers tell them there will be an unexpectedly long wait for their desired product.” Constraints on new project development are not confined to cable manufac- ture. Site engineering companies and cable- laying ships are also highly specialized and also in limited supply. The shortages are expected to be most acute in Europe. From 2011 to 2015, purchasers and developers have proposed to install an additional 14,000 kilometers of high-voltage submarine cables in 53 separate projects in Europe – nearly three times the total of the last 11 years. Some industry watchers estimate that the current supply chain is capable of producing only one-third of the required cables for projects planned in the next five years.

wiredInUSA - December 2011

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