Hyosung Heavy Industries completes 2GW HVDC verification system
Hyosung Heavy Industries completed the construction of a 2GW-class Hardware-In-the-Loop Simulation (HILS) system at its Gwacheon research institute. This facility, finished in October 2026, verifies the performance and grid stability of its proprietary 2GW HVDC controller.
Our take
How does Hyosung Heavy Industries' new HVDC verification system impact Korea's grid modernization?
Hyosung Heavy Industries' new 2GW-class HVDC verification system significantly strengthens Korea's domestic capability in large-scale HVDC technology, crucial for integrating distributed renewable energy and modernizing the grid, potentially reducing reliance on foreign suppliers like Siemens and ABB.
This HILS facility allows for rigorous, virtual testing of complex 2GW HVDC control systems, a critical step given the exponential increase in grid variables and fault scenarios at higher capacities compared to existing 200MW systems. By developing proprietary verification methods, Hyosung can accelerate the localization of GW-class HVDC, which is essential for projects like the West Coast Energy Highway designed to transmit Honam's renewable energy to demand centers. This strategic investment positions Korea to capture a larger share of the rapidly growing global HVDC market, valued at USD 15 billion by 2026, previously dominated by foreign firms.
What the source says
- The HILS system connects a physical HVDC controller to a virtual 2GW-class converter valve and power grid to simulate real operating conditions.
- Verifying a 2GW-class power grid requires at least 2-3 times more emergency and fault scenarios than a 200MW small-scale demonstration.
- The global HVDC transmission market is projected to grow from approximately USD 12.2 billion in 2025 to USD 15 billion (about KRW 20 trillion) in 2026.
- The HVDC control and protection systems segment is experiencing high growth of over 9.6% CAGR, driven by power grid digitalization.
- Siemens and ABB have historically dominated the HVDC technology market due to high entry barriers.
- Hyosung Heavy Industries began localizing voltage-source converter (VSC) HVDC technology with a 20MW demonstration project in Jeju in 2012.
- Hyosung successfully operated a 200MW voltage-source converter (VSC) HVDC facility at Yangju Substation in 2024.
- Industry experts Industry experts consider the HILS construction a decisive step for the 'Large-capacity VSC HVDC Localization Demonstration' project, jointly promoted by KEPCO and the Ministry of Climate, Energy and Environment.
For investors — Investors should monitor the progress of Korea's large-scale HVDC projects, particularly the West Coast Energy Highway, as enhanced domestic HVDC capabilities could accelerate grid upgrades necessary for integrating and transmitting large volumes of DER, creating new opportunities for flexible asset deployment.
Watch: Monitoring the timely completion and deployment of GW-class HVDC systems for the West Coast Energy Highway and other grid expansion projects.
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