Synchronous Condenser Market

Introduction:

A synchronous condenser is a type of synchronous machine that is used to regulate and support the electrical grid. It is essentially an oversized motor that operates without a load to provide reactive power and help stabilize the system's voltage. In this essay, we will discuss the operating principles, applications, and advantages of synchronous condensers.

Operating Principles of Synchronous Condenser:

• Synchronous condensers are synchronous machines that operate at a leading power factor. They are capable of generating or absorbing reactive power without producing any mechanical output. When the synchronous condenser is over-excited, it absorbs reactive power, and when it is under-excited, it generates reactive power.
  
• The synchronous condenser is designed to operate at a no-load condition, which means that it does not provide any mechanical power to the system. Instead, it is used to maintain system voltage stability, support the electrical grid during high demand, and regulate the power factor. It achieves this by producing or absorbing reactive power as needed.
  

Applications of Synchronous Condenser:

• Synchronous condensers have several applications in the electrical power system. One of the primary uses is in power factor correction. Since synchronous condensers can operate at a leading power factor, they are used to compensate for the lagging power factor caused by inductive loads such as motors and transformers. This helps improve the overall efficiency of the electrical grid.
  
• Another important application of synchronous condensers is in voltage regulation. The synchronous condenser helps maintain the voltage stability of the system during periods of high demand by absorbing or producing reactive power as needed. This ensures that the voltage remains within acceptable limits and prevents the occurrence of voltage dips or surges.
  

Advantages of Synchronous Condenser:

• Synchronous condensers offer several advantages in the electrical power system. One of the most significant advantages is their ability to support the grid during high demand periods. By absorbing or producing reactive power as needed, synchronous condensers help stabilize the voltage and prevent blackouts.
  
• Another advantage of synchronous condensers is their ability to improve the power factor. Since they operate at a leading power factor, they can help compensate for the lagging power factor caused by inductive loads. This helps reduce energy consumption, lower the electricity bill, and increase the overall efficiency of the electrical grid.
  

Conclusion:

In conclusion, synchronous condensers are an essential component of the electrical power system. They are used to support the grid during high demand periods, improve the power factor, and regulate the voltage stability. By understanding the operating principles, applications, and advantages of synchronous condensers, we can appreciate their importance in ensuring a stable and efficient electrical grid.

Synchronous condenser Market Dynamics

The use of renewable and sustainable energy sources is on the rise due to government strategies aimed at tackling environmental issues such as global warming, carbon emissions, and rising pollution. This has led to an increase in investments in capacity additions for clean energy sources, with renewables accounting for 38% of global installed power generation capacity in 2021, according to the International Renewable Energy Agency (IRENA). The power generation mix is expected to shift over the next decade, with a significant increase in solar (utility-scale), distributed generation and storage, and grid-scale energy storage. The International Energy Agency (IEA) predicts that annual additions to global renewable power capacity will average around 305 GW annually between 2021 and 2026.

Despite the growing adoption of renewable energy power generation technologies, the high manufacturing and maintenance costs of synchronous condensers pose a restraint. These costs are attributed to the large-scale use of expensive raw materials such as aluminum and copper, and the substantial power required for synchronous condensers to function continuously without a load. Additionally, synchronous condensers are more expensive than their alternatives, such as capacitor banks and shunt reactors, and are the least popular in the market.

There is an opportunity for the conversion of existing synchronous generators into synchronous condensers as aging power generation plants are decommissioned, environmental regulations become stricter, and competition from gas-fired turbines and renewable energy sources increase. This trend has led to the retirement of several aging coal-fired power plants across North America and Europe, and the phasing out of coal power plants in countries such as Belgium, Austria, Sweden, Japan, and Germany. Converting existing synchronous generators into synchronous condensers can stabilize grid systems and provide the reactive power required for areas that were previously dependent on large thermal power plants. This conversion offers an economical source of reactive power capacity and can produce approximately 30-35% more reactive power than in power generation mode. The cost of conversion is approximately USD 3-5 million and is expected to create growth opportunities for market players.

One of the challenges in the synchronous condenser market is the availability of low-cost substitutes. While synchronous condensers are used to enhance power factors by generating or absorbing reactive power to stabilize grid systems, there are more affordable alternatives such as shunt reactors, capacitor banks, STATCOM, and static VAR compensators that can achieve the same results. Additionally, high maintenance and equipment costs make it challenging for synchronous condensers with long service life and stability to gain widespread adoption.

The static frequency converter segment is expected to be the largest market during the forecast period, mainly due to its space-saving design and low noise generation. As a result, it is highly sought-after in the global synchronous condenser market. The demand for static frequency converters is expected to increase further as consumers look for cost-effective installation options.

The synchronous condenser market is segmented by reactive power rating, with the above 200 MVAr segment expected to be the fastest-growing during the forecast period. Synchronous condensers in this segment provide several advantages, including cost efficiency, high power quality, low harmonic emission, and a robust short-circuit power capacity. Furthermore, hydrogen is the most commonly used cooling system for synchronous condensers in this segment. The increasing adoption of large-sized hydrogen-cooled synchronous condensers is likely to drive the market growth.

North America is expected to be the fastest-growing synchronous condenser market between 2022–2030, followed by Europe and the Asia Pacific. The North American market is driven by efforts to upgrade and replace aging infrastructures, improve grid reliability and resilience, and develop smart electricity networks. The power sector in North America is currently grappling with challenges such as meeting energy efficiency targets, complying with federal carbon policies, and integrating various distributed generation sources in the grid. To address these challenges, utilities in the region are undergoing significant digital operational transformation with a focus on decentralization, digitization, and decarbonization of power systems. These developments in the power infrastructure are expected to drive the market in North America.

Recent Developments:

• In March of 2022, ANDRITZ Group was awarded a contract by Doosan Heavy Industries and Construction Co. Ltd. to supply hydro and electromechanical equipment for the Upper Trishuli 1 hydropower plant in Nepal. This run-of-river plant is owned by Nepal Water & Energy Development Company Pvt. Ltd. The contract includes the design of the turbine and generator components, complete electrical power systems, balance of plant, automation, installation, and commissioning.
  
• Another recent development in the energy industry occurred in August of 2021 when ABB was awarded a major turnkey contract by Statkraft, Europe's largest renewable energy generator. ABB will design, manufacture, and install two high-inertia synchronous condenser systems for the Lister Drive Greener Grid project located in Liverpool, Northwest England.
  
• In May of 2021, Terna S.p.A., the Italian transmission system operator, ordered two static synchronous compensators (STATCOM) systems and two synchronous condensers. The order was placed to ensure the stability of the Italian grid.
  
• In January of 2021, WEG, a Brazilian provider of solutions and equipment for power generator drivers focusing on thermal and wind energy, acquired Industrial e Comércio de Turbinals e Transmissões Ltda. (TGM). This acquisition expanded WEG's product portfolio related to the Industrial Electro-electronic Equipment and Energy Generation segments.
  

Key Market Players:

ABB

SIEMENS ENERGY

GE

WEG

EATON

ANDRITZ GROUP

ANSALDO ENERGIA

MITSUBISHI HEAVY INDUSTRIES

VOITH GROUP

FUJI ELECTRIC

BHARAT HEAVY ELECTRICALS LIMITED (BHEL)

IDEAL ELECTRIC POWER (HYUNDAI IDEAL ELECTRIC CO.)

POWER SYSTEMS & CONTROLS

BRUSH GROUP

ELECTROMECHANICAL ENGINEERING ASSOCIATES

ANHUI ZHONGDIAN (ZDDQ) ELECTRIC CO., LTD.

SHANGHAI ELECTRIC

INGETEAM

DOOSAN ŠKODA POWER

HANGZHOU JINGCHENG ELECTRICAL EQUIPMENT CO., LTD