As carbon emission regulations are tightening in global markets, especially in Europe, demand for eco-friendly equipment is rising rapidly in the power equipment market.
According to the power equipment industry on the 18th, the U.K. power equipment company Lucy Group said on the 6th (local time) that it acquired 100% equity of Nuventura, a German specialist in sulfur hexafluoride replacement (SF₆-FREE) medium-voltage gas-insulated switchgear (GIS).
Sulfur hexafluoride (SF₆) is a gas widely used in breakers and GIS, which are core power equipment. Its insulation performance surpasses that of carbon dioxide (CO₂), but since its global warming potential (GWP) is about 24,300 times higher, replacement is underway.
The European Union (EU) has completely banned the use of sulfur hexafluoride in GIS of 24 kilovolts (kV) or lower starting this year. In 2030, it plans to prohibit the use of sulfur hexafluoride in medium-voltage switchgear of 52 kV or lower, and from 2032, in high-voltage switchgear above 52 kV.
Accordingly, replacement demand is also increasing for power equipment that does not contain sulfur hexafluoride. Hitachi Energy, one of the three major global power equipment companies, last month signed the world's first contract to supply 550 kV SF₆ replacement GIS to Japan's Chubu Electric Power. The introduction of alternatives has begun even for extra-high-voltage products that had used sulfur hexafluoride until now, and it can reduce carbon dioxide emissions by up to 99% compared with conventional GIS.
Japan has not yet regulated equipment that uses sulfur hexafluoride, but it is accelerating decarbonization. Tokyo Electric Power also set a policy to raise the share of decarbonized power sources to 60% by 2040. In the same month, Hitachi won additional orders for decarbonized power equipment from Australian company ElectraNet.
Global market research firm Market Growth Reports projected that the eco-friendly GIS market, which was $559.2 million (about 8.2817 trillion won) last year, will grow 3.4% annually to reach $772.9 million (about 11.4466 trillion won) in 2034.
Korean companies are also increasing investment in developing eco-friendly power equipment. Hyosung Heavy Industries recently developed a 145 kV breaker that applies dry air instead of sulfur hexafluoride, and it is developing and supplying a 400 kV eco-friendly insulating-oil transformer. In Oct. last year, it established a heavy industry research and development (R&D) center in the Netherlands and is developing various eco-friendly gas-insulated switchgear breaker technologies.
Eco-friendly insulating-oil transformers use environmentally beneficial insulating oil instead of conventional mineral oil and have a lower risk of fire due to a higher flash point. Even if an explosion releases oil externally, it naturally decomposes, driving strong demand for installations in urban areas.
HD Hyundai Electric, after successfully developing a 145 kV GIS for export, is also moving to commercialize a 420 kV product. On the 6th, a Netherlands government official visited Korea to review eco-friendly products, raising expectations for additional orders.
A power equipment industry official said, "Eco-friendly products are still relatively expensive, but demand is increasing in Europe, including the U.K., Norway, and Spain."