Cables and conductors stand as integral components within the power transmission and distribution (T&D) network. The cables industry, following the downturn owing to the Covid-19 pandemic, is now gaining momentum, primarily fuelled by the growth in the industrial and commercial segments. A major catalyst propelling the industry’s expansion is the demand for power evacuation from the upcoming renewable energy projects and the imperative for providing 24×7 reliable power supply. On the technological front, utilities are directing their efforts toward optimising power transfer per unit right of way (RoW) and increasing the current-carrying capacity of transmission lines. High-performance conductors, such as high-temperature low-sag (HTLS) conductors and gas-insulated lines (GILs), along with cable variants such as cross-linked polyethylene (XLPE) cables and underground cables, are gaining notable traction.
The aggregate transmission line length at 220 kV and above voltage stood at 478,367 ckt km as of October 2023, as per the Central Electricity Authority. The overall line length increased from 291,336 ckt km during 2013-14 to 471,341 ckt km during 2022-23, recording a compound annual growth rate (CAGR) of 5.49 per cent. The state sector has a major share (53.66 per cent) in the aggregate line length, followed by the central (37.79 per cent) and private (8.56 per cent) sectors. In terms of voltage, nearly 84.59 per cent of the aggregate transmission line length is at 400 kV and 220 kV voltage levels, followed by 765 kV lines, with a share of 11.34 per cent in the total line length. The remaining shares of 1.97 per cent and 2.02 per cent are accounted for by ± 500 kV high voltage direct current (HVDC) and ± 800 kV HVDC lines in the total line length respectively. As per India Infrastructure Research, the distribution line length and transformer capacity have grown at CAGRs of about 3.8 per cent and 7.6 per cent respectively, between 2017-18 and 2021-22. As of March 2022, the distribution line length stood at about 13.9 million ckt km. Pv Cable
A look at the cables and conductors market…
The market for cables and conductors has largely been driven by the expansion of the power and infrastructure sectors. As per the Indian Electrical and Electronics Manufacturers’ Association, during 2022-23, conductor imports stood at Rs 7.97 billion, much lower than exports, which were at Rs 55.04 billion during the same period. During 2023-24 (till June 2023), conductor imports stood at Rs 1.91 billion, while exports were at Rs 15.11 billion during the same period. Meanwhile, during 2022-23, the import of HV and low voltage (LV) cables stood at Rs 17.34 billion, while their export stood at Rs 68.9 billion. During 2023-24 (June 2023), the import of HV and LV cables stood at Rs 4.71 billion, while their export stood at Rs 19.69 billion. Domestic growth for the cables industry during 2022-23 stood at 19.4 per cent, while that for conductors was 34.4 per cent as compared to 2021-22. The growth index for the cables industry during 2023-24 (till June 2023) was 24 per cent, while that for conductors was (-) 4.2 per cent.
The market is poised for growth, driven by several key factors. These include the increasing renewable power generation, expansion and modernisation of T&D infrastructure, and growing investments in metro railways. The global demand for cables and conductors is anticipated to rise due to increased investments in smart grid projects and the upgrading of power T&D systems. The surge in smart grid technology investments has led to a greater need for grid interconnections. Furthermore, escalating investments in underground cables, coupled with the expanding renewable energy sector, is expected to boost the adoption of cables and conductors.
The demand for cables and conductors is closely tied to the growth of the manufacturing industry and infrastructure, particularly in the power, telecommunications, residential and commercial sectors. Consequently, government initiatives across various domains, such as power, housing, infrastructure and digitalisation are expected to create significant opportunities for the cable and conductor segment in the foreseeable future. Moreover, the government’s emphasis on promoting renewable energy is driving the industry to supply cables for solar and wind power applications, in addition to serving sectors such as oil and gas, railways and other segments.
Several new alternatives have surfaced, providing utilities with the means to expand their capacities while minimising RoW requirements and enhancing reliability. In recent times, aluminium has completely overtaken copper as a conductor input, owing to its lower costs and light-weight nature. The deployment of new high-performance conductors (HPCs) capable of carrying higher quality currents has become prevalent. These HPCs exhibit superior temperature resistance compared to traditional aluminium conductor steel reinforced (ACSR) conductors, including variations such as aluminium conductor steel supported, all aluminium alloy conductors, thermal-resistant aluminium conductors steel reinforced, aluminium conductor alloy reinforced, and aluminium conductor carbon fibre reinforced cables.
In addition, an advanced iteration of HPCs, known as HTLS conductors, operates within a significantly higher temperature range than conventional ACSR conductors, exhibiting low thermal expansion and sag. HTLS conductors typically consist of aluminium wires helically stranded over a reinforcing core and can be of invar type, gap type, or synthetic core-based type. Two widely used HTLS conductors are super thermal alloy conductor invar reinforced and aluminium conductor composite core. Utilities choose HTLS conductors based on their specific requirements. A notable application of HTLS conductors involves the reconductoring of existing lines to boost power transfer capacity.
Within the cable segment, XLPE cables present superior tensile strength, elongation and impact resistance. They boast higher dielectric strength, leading to reduced dielectric loss. Another emerging technology in the same segment is GIL, utilising nitrogen and sulphur hexafluoride as the insulating medium. GILs emerge as a practical alternative to overhead lines in locations lacking RoW for electricity transmission, as they can be installed underground, in tunnels and within trenches. Utilities are increasingly adopting underground cable systems in areas where securing RoW proves exceedingly challenging.
While the cable and conductor industry is poised for substantial growth in the coming years, it grapples with notable challenges, including escalating prices and competition posed by imports. The sector faces volatility in raw material prices, particularly with the continuous increase in copper prices, which, in turn, squeezes profit margins and diminishes competitiveness in the global market. The surge in fuel prices also directly impacts domestic transportation, leading to elevated transportation costs for cables and conductors. Moreover, a significant portion of the industry remains unorganised, resulting in a dearth of quality product offerings due to non-compliance with product guidelines. Additionally, challenges persist in the form of increasing commodity prices, rising crude oil rates and growing inflation, significantly impacting cable and conductor manufacturers. Moreover, the RoW issue poses hurdles in the smooth implementation, despite technological advancements aimed at reducing RoW requirements.
The cables and conductors segment is experiencing an upward trend and is anticipated to face a strong demand in the medium to long term, driven primarily by the expanding T&D network. To meet future peak loads and seamlessly integrate large-scale renewable energy projects, substantial investments will be essential to strengthen and enhance the country’s transmission infrastructure. Moreover, the government’s Make in India and Atmanirbhar Bharat initiatives have redirected attention towards reducing imports and fostering domestic manufacturing of cables and conductors. Additionally, the National Infrastructure Pipeline has projected a capital expenditure of approximately Rs 3,040 billion for the power transmission segment between 2020 and 2025, which is a positive indicator for anticipated demand for cables and conductors in the coming years.
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