In today’s rapidly evolving energy landscape, the demand for reliable high-voltage infrastructure has never been higher. With the private market facing unprecedented challenges from surging electricity consumption—driven by data centres, renewable energy integration, and industrial electrification—substations are emerging as a critical component. As experts in onshore and offshore high-voltage solutions, Reynard High Voltage Solutions is at the forefront of addressing this urgency. In this blog, we’ll explore why substations are urgently needed across the private market, highlight key players, and discuss how businesses can capitalise on these opportunities.
Why Substations Are Urgently Needed in the Private Market
The private sector is stepping up where public funding falls short, investing in high-voltage substations to support grid modernisation and the global energy transition. According to industry reports, global infrastructure investments are expected to reach $51 trillion by 2040, with a significant portion allocated to power grids and substations. Key drivers include:
- Ageing Infrastructure: Over 40% of Europe’s grids are more than 40 years old, leading to vulnerabilities in power delivery.
- Rising Demand from New Loads: Data centres alone are projected to increase power demand by 165% by 2030, alongside electric vehicles (EVs) and renewable projects.
- Supply Chain Crises: Transformer shortages have extended lead times to up to 4 years, with prices rising by 80%, exacerbating the need for private innovation in high-voltage testing and installation.
- Regulatory and Sustainability Goals: Europe’s offshore wind targets (e.g., 50GW in the UK by 2030) require advanced substations for efficient energy transmission.
At Reynard, our expertise in high-voltage terminations and testing positions us to deliver precision services that ensure flawless power transmission for these private market needs. Whether it’s onshore wind substations or offshore platforms, we’re committed to safety, innovation, and sustainability.
Key Players in the Private Substation Market
The private market for substations comprises a mix of infrastructure funds, manufacturers, and developers that drive innovation and investment. Here are some of the top players:
Infrastructure Funds and Private Equity
- Blackstone: Leading with multi-billion-dollar funds focused on energy infrastructure, including substations for renewables and data centres.
- KKR: Investing in grid upgrades and high-voltage projects, tapping into the $350 billion in available private capital.
- Brookfield: Managing large-scale assets with an emphasis on European and North American substation expansions.
These firms often operate through models like Offshore Transmission Owners (OFTOs) and unlock billions in investments while providing stable returns.
Manufacturers and Technology Providers
- Siemens Energy: Expanding facilities for large power transformers (LPTs) and substations, with investments like $150 million in North Carolina to produce 57 LPTs annually by 2026.
- Hitachi Energy: A global leader in HVDC and AC substations, committing $1.5 billion to support renewable integration.
- ABB: Specialising in digital and gas-insulated substations for smart grid applications.
Reynard partners with industry leaders like Siemens Energy to enhance our high-voltage services, ensuring seamless integration for private clients.
Independent Operators and Developers
- National Grid: Partnering with private funds for UK substation expansions.
- SSE and ScottishPower: Focusing on offshore wind substation projects.
- Balfour Beatty: Constructing and operating private substations across Europe.
As a Dutch-based specialist, Reynard contributes to this ecosystem by providing onshore and offshore solutions and including high-voltage testing and terminations for wind power projects.
Opportunities for Businesses in the Private Substation Market
The urgency creates vast opportunities for private entities:
- Investment Returns
Private capital in infrastructure is projected to grow to $2.3 trillion in assets under management (AUM) by 2029. - Technological Innovations
Digital substations and modular designs reduce costs and deployment times. - Regional Focus: In Europe, the Benelux region and UK offer prime opportunities for offshore wind substations.
At Reynard, we’re leveraging our Reynard Academy and proprietary Toolbox Suite to train experts and manage projects efficiently. Our services in high-voltage infrastructure help businesses navigate these challenges, from initial design to maintenance.
How Reynard Can Help with Your Substation Needs
As a fast-growing company dedicated to the energy transition, Reynard offers comprehensive high-voltage solutions tailored to the private market. Whether you need support for substation construction and testing, or offshore wind connections, our team ensures safety and reliability.Ready to power your project? Contact us today for a consultation or download our brochure to learn more about our high-voltage expertise.
