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DEEP RESEARCH · UHV POWER GRIDS

The History and Future of the Ultra-High-Voltage Grid Industry

A structured view of UHV/HVDC technology, cable bottlenecks, and global competition

Published: 2025-08-15 · Industry research reconstruction · Naver Blog

Investment decisions are your responsibility. This material is research and is not a buy or sell recommendation.

0. Bottom line first

The global UHV grid market has entered a new super cycle as energy transition, geopolitical competition, and massive capital investment converge. Leadership moved from early Western and Japanese technology push to China’s demand pull, and Korean cable companies are now reshaping the field through aggressive investment and technology development.

Economic moat in UHV gridsThree bottlenecks separate top-tier players
XLPE insulationPurity, performance, high-temperature operation
VCV towersVertical continuous vulcanization precision
CLV vesselsSubmarine cable laying and operation
Turnkey capabilityFrom production to installation
Winners need technology leadership, manufacturing scale, and project execution together.

Audio file: Future energy arteries: the UHV technology power struggle.mp3

1. Origins: technology existed before demand

Official fact: In the 1960s and 1970s, the Soviet Union, Japan, the United States, Italy, Canada, and Brazil began UHV research to reduce transmission loss, shrink land use, and move large-scale power over long distances.

CountryEarly effortOutcome
Soviet Union2,362 km of 1150kV AC lines, including Ekibastuz-Kokchetav, commercially operated for six years from 1985Later downgraded to 500kV due to operating and economic issues
JapanTEPCO began research in 1973 and built 430 km of 1100kV lines in the late 1980s and 1990sActual operation in the 2000s was at 550kV
United StatesAEP, BPA, GE, EPRI and others began UHV research in 1967No comparable large-scale deployment to China
Italy and Canada1050kV and 1500kV laboratory or test facilitiesNo large commercial UHVAC buildout

Interpretation: The early failures show that technology alone does not create an industry. There were radio interference, audible noise, electric-field, and magnetic-field issues, but the larger problem was that power demand did not justify the enormous investment.

2. HVDC made commercialization possible

Official fact: Modern HVDC evolved from mercury-arc valves to thyristor valves in 1970 and IGBT-based voltage-sourced converters in the 1990s. ABB’s 1997 commercialization of HVDC Light improved control, black-start capability, and economics for smaller systems.

1954

Mercury-arc valves

Enabled the first commercial HVDC link between mainland Sweden and Gotland.

1970

Thyristors

A semiconductor turning point that expanded voltage, capacity, and distance.

1997

VSC/HVDC Light

Expanded controllability and use cases for offshore wind and distributed power.

3. The pivot: China’s demand pull

Official fact: China needed to transmit hydropower, wind, and solar resources from the west to eastern industrial regions. State Grid made UHV a national strategic project, producing the 1000kV AC Southeast Shanxi-Nanyang-Jingmen line in 2009 and the 3,324 km, 12GW, ±1100kV Changji-Guquan UHVDC project in 2018.

Interpretation: UHV history is the shift from technology push without demand to demand pull that forced commercialization and standard setting. China moved from technology importer to innovator and standards shaper through domestic deployment.

4. Today’s competition: systems and cables

The market now divides into system design, such as HVDC converter stations, and core infrastructure, such as ultra-high-voltage cables. Hitachi’s acquisition of ABB’s power-grid business was a strategy to combine hardware with digital platforms, while Prysmian’s purchase of General Cable was a scale and geographic-complementarity move across Europe, North America, and Latin America.

Systems

Hitachi Energy, Siemens Energy, GE Vernova

The concentrated technology group behind HVDC converter stations.

Cables

Prysmian, Nexans, Sumitomo, LS Cable, Taihan, ZTT/Hengtong

An infrastructure field where XLPE, VCV, and submarine installation create barriers.

5. Bottlenecks: XLPE, VCV, and CLV

Official fact: Cable competitiveness depends on XLPE insulation purity and performance, VCV tower height and precision, and CLV ownership and operation. The source describes LS Cable as commercializing 525kV HVDC cable technology and developing a 90°C 525kV HVDC cable that can raise transmission capacity by up to 50%.

Official fact: LS Cable completed a fifth submarine cable plant in Donghae with a 172m VCV tower, expanding HVDC production capacity more than fourfold. It is also building a UHV submarine cable plant in Virginia with about a 201m VCV tower through a $681 million investment. LS Marine Solution is investing about EUR 221 million to secure a 13,000-ton CLV.

Official fact: Taihan obtained KEMA certification for a 525kV VSC XLPE HVDC cable system based on a 3,000㎟ conductor and 90°C operating temperature, and plans a KRW 520 billion second HVDC submarine cable plant in Dangjin.

6. Investment conclusion

Interpretation: UHV grids have become a battlefield where energy security and industrial policy collide. Buy American and Europe’s Critical Raw Materials Act push supply-chain localization, so companies need local manufacturing and installation capacity.

My takeaway is simple. In the energy super cycle, turnkey players with technology, scale, localization, and cable-laying vessels may deserve more value than simple manufacturers.

Sources

Naver original