Hitachi Energy India Limited has highlighted a notable shift in the adoption of High Voltage Direct Current technology, stating that HVDC is no longer a niche solution but is increasingly becoming central to large-scale power transmission projects. Management commentary indicates that the company is seeing a visible expansion in tender activity, with two major HVDC projects currently in the pipeline.

One of these tenders has already been issued for bidding, while the second is expected to progress through the tendering cycle in the coming months. The bidding process for these projects is expected to conclude within a timeframe of three to six months, suggesting potential order inflows over the near to medium term if execution timelines hold.

HVDC systems are typically deployed for transmitting electricity over long distances with minimal losses, particularly in cases where power needs to be moved from renewable generation hubs to consumption centres. As India accelerates its renewable energy capacity addition—especially solar and wind projects located in remote regions—the need for efficient long-distance transmission infrastructure has increased significantly. This is driving renewed interest in HVDC corridors.

What is changing is the scale and strategic importance of these projects. Unlike conventional transmission systems, HVDC projects involve complex engineering, higher capital intensity and longer execution timelines. According to the company’s management, these projects are large infrastructure undertakings with relatively minor delays in current execution schedules, indicating stable progress on ongoing contracts.

The cost structure of HVDC projects also provides insight into revenue composition. Approximately 45% to 60% of project value typically falls under the OEM scope, which includes high-value equipment such as converters, transformers and control systems. The remaining portion is linked to land acquisition, civil infrastructure and auxiliary components. This split is important from a margin perspective, as equipment supply tends to carry higher value addition compared to infrastructure components.

Why this matters for markets is the visibility it offers into future order books for companies operating in the power transmission equipment space. HVDC projects are large-ticket contracts that can significantly boost revenue pipelines over multiple years. As tendering activity increases, companies with established capabilities in HVDC technology stand to benefit from higher participation in upcoming projects.

Market Impact on India

The growing pipeline of HVDC projects reflects India’s broader transition toward strengthening its transmission backbone to support renewable energy integration. Large inter-state transmission corridors are expected to play a critical role in balancing supply-demand mismatches across regions, especially as renewable penetration increases.

Sector Impact

Within the power and industrials sector, the shift toward HVDC technology is likely to benefit transmission equipment manufacturers, EPC contractors and grid infrastructure players. It also signals sustained capital expenditure in grid modernisation, a theme that has been gaining traction alongside energy transition policies.

Bull vs Bear Scenario

The bullish case is anchored in strong order visibility, with HVDC projects offering long-duration revenue streams and higher-value contracts. Early positioning in this segment could enhance market share for companies with proven execution capabilities.

The bearish view centres on execution complexity and project delays. Given the scale of these projects, any delays in approvals, land acquisition or funding could impact timelines and revenue recognition.

Risk Section

Key risks include project execution challenges, regulatory approvals, and dependency on government-led transmission expansion plans. Cost overruns or delays in tender finalisation could also affect order inflow timing. Additionally, competitive intensity in large transmission bids may put pressure on margins.

Overall, the emerging HVDC pipeline underscores a structural shift in India’s power transmission landscape, with high-capacity, long-distance infrastructure becoming increasingly critical to supporting the country’s evolving energy mix.