LS Cable & System reports that the South Korean company has received certification for its high voltage direct current (HVDC) cable
A press release said that LS Cable & System completed a long-term reliability test of its 500 kV DC cable, monitored by the Korea Electrotechnology Research Institute for six months from last October. The institute ultimately recognized the quality of the HVDC cable technology, LS Cable & Systems can now export the product without any other tests, it said.
Including LS Cable & System, there are only five companies that have their own HVDC cable technology. The company began developing the technology in 2005 and won a contract for the country’s first project to construct an HVDC electric power transmission system overland between North Dangjin and Godeok.
Compared with the traditional alternating current (AC) system, HVDC is regarded as more economical in transmitting large amounts of power point-to-point over long distances. HVDC transmission also has lower overall investment costs and lower power losses than AC transmission.
According to the Ministry of Trade, Industry and Energy, the accumulative market size of the HVDC business will be 70 trillion won by 2020. The release said that with the technology and knowhow the company has accumulated, LS Cable & System witnessed its revenue climb 13% year-over-year to 3.5 trillion won ($3.25 billion) last year. The operating profit also jumped 33% to 111.3 billion won in the cited period.
LS Cable & System is expected to play a bigger role in the near future as the South Korean government recently began to pursue a new northern policy to build a new economic belt with North Korea, the release said. It noted that while South Korea and North Korea have different voltage and current frequency, the company said the HVDC technology can transmit and receive power between them.