Reading: L&T Secures Major Substation Contracts in Saudi Arabia and UAE

L&T Secures Major Substation Contracts in Saudi Arabia and UAE

Amin khan
9 Min Read
AUCKLAND, NEW ZEALAND - JULY 18: Electric power substation, Otahuhu Auckland. (Photo by David Hallett/Getty Images)

Larsen & Toubro (L&T), a leading Indian multinational conglomerate, has made significant strides in the Middle East by securing substantial contracts in Saudi Arabia and the United Arab Emirates (UAE). These projects, valued between ₹10,000 crore and ₹15,000 crore, are focused on enhancing and modernizing the high-voltage electricity grids in these nations. This move not only strengthens L&T’s global footprint but also reinforces its role as a key player in the power transmission and distribution sector.

Projects in Saudi Arabia

In Saudi Arabia, L&T’s Power Transmission & Distribution (PT&D) vertical has been entrusted with several critical projects aimed at transforming the nation’s power infrastructure. The Kingdom has been investing heavily in its energy sector to support its growing industrial base and rapidly increasing population. The projects awarded to L&T are part of Saudi Arabia’s broader vision to modernize its energy infrastructure and integrate more renewable energy sources.

L&T will establish high-voltage direct current (HVDC) transmission links rated at ±500kV. HVDC technology is preferred for long-distance transmission due to its efficiency and ability to minimize power losses. These links will play a crucial role in interconnecting various regions within Saudi Arabia’s national electricity network. By facilitating efficient power exchange, they are expected to enhance the resilience and reliability of the grid.

This project is a significant step in Saudi Arabia’s strategy to build a robust and interconnected power grid capable of handling the complexities introduced by renewable energy sources like solar and wind. The new HVDC links will enable seamless transmission of power from remote renewable energy generation sites to urban and industrial centers.

2. 380kV Overhead Transmission Lines

L&T has also secured contracts for the construction of two 380kV overhead transmission lines. These lines will expand the capacity of the national grid and support the integration of renewable energy. Overhead transmission lines are essential for transporting large amounts of electricity efficiently and are a cost-effective solution for expanding grid capacity.

The deployment of these transmission lines aligns with Saudi Arabia’s Vision 2030, which emphasizes sustainability and aims to reduce the Kingdom’s dependence on oil by investing in renewable energy sources. The new lines will facilitate the transmission of clean energy generated from solar farms and wind turbines, thereby contributing to the Kingdom’s goal of achieving 50% renewable energy in its power mix by 2030.

3. 380kV Gas Insulated Substation

The company will also build a 380kV gas-insulated substation (GIS). GIS technology is favored for its reliability, compactness, and lower maintenance requirements compared to conventional air-insulated substations. This substation will enhance the capacity of the grid to integrate renewable energy sources and improve the stability and reliability of power supply across the Kingdom.

The substation’s role will be critical in managing the fluctuating power generation from renewable sources by ensuring that surplus power can be efficiently stored and transmitted when needed. Its advanced control and protection systems will also safeguard the grid from potential faults and ensure uninterrupted power delivery.


Initiatives in the United Arab Emirates

In the UAE, particularly in Abu Dhabi, L&T has been awarded a contract to develop two major 400kV gas-insulated substations. The UAE’s energy strategy focuses on diversifying energy sources and enhancing the efficiency of the power sector. These substations are designed to support the nation’s ambitious targets of increasing the share of clean energy to 50% by 2050.

Key Components of the UAE Projects

  1. Series Current Limiting Reactors:
    These devices help manage and limit fault currents in the grid, ensuring the protection and longevity of the electrical infrastructure. By mitigating the impact of short circuits and overloads, they contribute to the grid’s stability and operational efficiency.
  2. Auto Transformers:
    These transformers are essential for adjusting voltage levels between transmission networks, optimizing power flow, and reducing transmission losses. Their deployment will enhance the efficiency of the UAE’s power distribution system.
  3. Control and Protection Systems:
    Advanced control and protection systems will be installed to monitor and safeguard the substation and transmission lines. These systems are critical for detecting faults promptly and preventing cascading failures across the grid.
  4. Substation Monitoring & Alarm Systems:
    The substations will be equipped with sophisticated monitoring systems that continuously track performance metrics and generate alerts in case of any anomalies. This capability will enable rapid response to potential issues, minimizing downtime and enhancing grid reliability.
  5. Telecommunication Systems:
    Robust telecommunication infrastructure will be deployed to facilitate seamless communication between the substation and the central load dispatch center. Efficient communication is vital for coordinated grid management, especially during peak demand periods or emergencies.

These substations are expected to significantly enhance the power transfer capacity of the UAE’s electricity grid, supporting the nation’s growing energy demands driven by its rapid urbanization and industrial expansion.


Strategic Importance of These Projects

The Middle East has been aggressively investing in modernizing its power infrastructure to accommodate the increasing integration of renewable energy sources. The growing focus on sustainability and energy security has led to an accelerated demand for advanced power transmission and distribution systems. L&T’s involvement in these projects is a testament to its expertise in executing large-scale infrastructure projects efficiently.

These projects are not only about expanding grid capacity but also about building a smarter and more resilient power infrastructure. With the addition of advanced control systems and HVDC technology, the power grids in Saudi Arabia and the UAE will be better equipped to manage peak loads and integrate renewable energy sources seamlessly.


L&T’s Expertise and Global Footprint

L&T’s extensive experience in executing complex infrastructure projects has made it a trusted partner in the global energy sector. The company has a proven track record of delivering projects on time and within budget, which has bolstered its reputation in international markets. Its ability to adopt advanced technologies and execute high-value projects has played a crucial role in securing these contracts.

T. Madhava Das, Whole-time Director & Senior Executive Vice President (Utilities) at L&T, emphasized the importance of these projects, stating that the modernization of transmission systems is a fundamental step towards establishing a secure and resilient grid capable of handling the complexities of renewable energy integration. He highlighted L&T’s commitment to supporting the energy transition in the Middle East by leveraging its technical expertise and execution capabilities.


Conclusion

L&T’s recent contract wins in Saudi Arabia and the UAE underscore its pivotal role in the evolving global energy landscape. By undertaking these critical projects, L&T is not only reinforcing its position as a leader in power transmission and distribution but also contributing to the sustainable energy goals of these nations. The company’s focus on deploying advanced technologies and its commitment to excellence in project execution are expected to drive further growth and consolidation of its position in the international market.

As the world moves towards cleaner and more reliable energy systems, L&T’s expertise in power infrastructure will play a vital role in shaping the future of energy in the Middle East and beyond.

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