Siemens will partner with Sumitomo Electric to build electrical infrastructure worldwide, with their first project aimed at producing power grid equipment in India.
According to a report by Nikkei Asian Review, Both Sumitomo and Siemens will partner on a $538 million project to lay underground transmission lines as part of a power link spanning Pugalur in the southern state of Tamil Nadu and Trissur in Kerala. The 128 km of cable will be able to carry 2,000 megawatts of electricity.
Sumitomo Electric enjoys a cost advantage over its competitors thanks to the narrow diameter of its cables; underground cables cost more to install than overhead wires.
Siemens’ role in this project will be to supply converters, a key element of grid equipment.
According to Nikkei Asian Review, the global market for power transmission and distribution systems is expected to grow to around $270 billion in 2020, with smart-grid technology attracting players from beyond the industry’s traditional boundaries.
There also seems to be a growing demand for low-cost, efficient undersea cables in Europe, thanks to a surge in the construction of offshore wind turbines.
Sumitomo Electric and Siemens will seek out supply contracts in Japan as well as the rest of the world while exploring other areas of cooperation, including research and development in power transmission.
Image credits and content source: Nikkei Asian Review