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Global Snapshot: Key Growth Drivers & Challenges [free access]

October 11, 2018

Over the past few years, integration of renewable energy facilities has been the primary driver of transmission investment, especially in developed economies. In the developing economies of Asia, Africa and Latin America, a key driver has been to expand access to electricity. These economies are investing in network expansion to connect remote and isolated regions so as to improve overall levels of access to electricity. Investments are also being made to improve reliability, resiliency and security of electricity supply. Developed countries in Europe and North America are also allocating a significant share of their capex for refurbishment and replacement of grid assets.


Figure 1: Key growth drivers for global electricity transmission sector



Despite strong investment opportunities in the global transmission industry, several challenges remain. These include delays in completion of projects due to right-of-way as well as permitting issues. The lack of funding, particularly in developing economies, also results in postponement of key projects. Even in the case of developed regions, the issue of socialisation of costs and who pays for new transmission leads to difficulties in raising the requisite finance for transmission projects. The challenge also relates to delays in generation projects, which in turn lead to time and cost overruns for the associated transmission projects. Given that many of the transmission utilities in Asia, Africa and the Middle East have recently undergone or are still undergoing the process of reforms, there is a resistance to adopting new technologies and methods to cope with the emerging circumstances in their respective electricity sectors.


Figure 2: Key challenges for global electricity transmission sector




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