According to the most recent International Energy Association sector report, total global renewable power capacity growth will almost double by 2027. Renewables should account for more than 90% of global electricity expansion in this period, becoming the world’s key source of electricity by 2025.
“Accelerating the energy transition with solutions for all electrification needs is made possible by the Group’s crucial role and experience in high voltage underground and submarine cabling”, said Hakan Ozmen EVP Projects BU.
The growth in demand for renewable energy is also reflected in the project pipeline. In fact, Prysmian's current order backlog exceeds €9 bn, and the Projects BU revenues show +29.5% organic growth compared to Q1 2022.
Renewable market growth is mainly driven by offshore wind, calling of an increased need for cable interconnections to strengthen the power grids and maximize the benefits of renewable resources. According to the approved CAPEX plan for the period 2023-2025, Prysmian Group is investing €500 million capex per year to support the energy transition, electrification and digitisation processes, to support this global trend. These investments mainly concern production capacity adjustments and Group’s new submarine cable plant in the USA, a new cable-laying vessel, Monna Lisa, alongside the Leonardo da Vinci, and technology innovation.
“Our growth strategy relies on 4 key drivers: our commitment to stay focused on our customers’ needs, supporting them in reaching their sustainability goals; our centres of excellence where our solutions come to life; our installation capabilities with high-tech burial tools and the largest fleet in the industry; and last but not least, our solid capacity to innovate and lead the industry which confirms us as an enabler of the energy transition."
EVP Projects BU
As the demand for renewable energy increases, the need for cables to meet it will also increase.
Low, medium, and high voltage cables are required in practically every part of the electrification process. Europe and APAC currently account for the largest HV cabling market values, which are projected to more than double over the next decade.
High voltage transmission will be increasingly used to connect offshore wind farms to land power grids, as well as transmitting high levels of electrical power across the sea over long distances and cross countries, connecting places where clean energy is generated to places where clean energy is needed. In this way, HV cabling will be essential in realizing global decarbonization goals and helping limit global warming to 1.5 °C. As the enabler of the energy transition, Prysmian can rely on different innovative solutions.
Prysmian’s 525 kV HVDC cable system is an excellent example: a thermoplastic breakthrough technology operating at high temperatures and enabling up to 2GW power transmission, for both land and submarine projects. This system can connect remote power generation areas such as wind generation-rich regions to major consumption centers, typically located far from renewable energy sources, while also reducing the required land usage and ensuring lower environmental impact.
“As the energy transition gathers speed, new renewable energy generating capacity is driving a shift to extruded High Voltage 525 kV cables that carry nearly double the amount of power across land and submarine interconnections.”
Chief Commercial Officer, Projects BU
According to 4C Offshore, global offshore wind is expected to grow to 268 GW by 2030, of which 12 GW of floating offshore wind. Most of these are expected to be commissioned after 2030, although a significant portion should be active before then. Floating wind constitutes a significant part of current wind energy leases. Floating will become more relevant after 2030.
Thanks to its dynamic cable systems, Prysmian is able to connect the wind turbines among themselves and transport the energy from floating offshore substation to mainland power grids. Prysmian is already having its dynamic cables in operation and multiple ongoing pilot projects such as Kinkardine, Provence Grand Large and Gruissan.
