Wired for growth

Dow Wire & Cable, a business unit of Dow Chemical Company, manufactures critical components for wires and cables
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Rapid urbanisation is also leading to growth in underground cable installations. “The days of running cables in overhead lines is getting more and more difficult. As big cities grow, underground installations are growing faster. I think in the US now for a new overhead line you need about 12 years from starting a project to getting approval. It really has become such a political process it is almost impossible to get new overhead lines.

“So increasingly as the technology continues to develop, and high-voltage technology in particular, the alternative of transmission underground has grown from what has been a relative niche in the industry to very much a mainstream, and one we believe will become even more competitive and mainstream as a means of transmitting electricity,” said Penrice.

Growth in the global cable industry is predicated on finding solutions for transmission efficiency and longevity. “How do you get more out of your existing infrastructure? How do you put the economic case for reliability and longevity? In terms of installation, it costs roughly three times more to bury a cable than it does to make it. So if we are going to make underground cables more cost-effective, then the cost of installation needs to come down.”

On the issue of environmental awareness, Penrice said that “although green is a very broad subject, it refers to sustainability of materials and energy efficiency in particular. Again this is something that this industry has not really focused on. There are many other industries that have green as almost their number one driver. But we see it as coming in the cable and power industry as political pressure, and climate change in particular, is brought to bear.

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“What matters to everyone is having a system in the end that is the most reliable and cost-effective. What often happens with a cable buyer is they want the cheapest cable … so is the cheapest cable the lowest cost cable? No. The cost of a cable is around US$3/foot. However, the major cost is not the cable itself, but in the operation. The initial cable costs 14%, what we call the lifetime cost of the cable, while the installation is nearly three times that at 40%. This is where the longevity and reliability issues come in, together with asset management. If you end up in an asset-replacement strategy, you will end up facing significant replacement costs,” said Penrice.

An invisible element of the cost calculation that is often ignored is the issue of energy loss. “The average is 9%, which is a global figure, but it can be much higher if you have commercial losses. Best practice globally is 4% to 5%. In terms of a cable with a 40-year lifespan, that energy loss accounts for about a third of the cost. That is just the cost of the electricity losses; it does not include the carbon costs that may accrue.

“So our philosophy is really to tackle the big picture: the cost of installation, reliability and longevity, and see how we can bring solutions to bear to reduce that cost. Dow Inside is really a strategy aimed to try and raise awareness of the importance of quality in the industry. The lowest-cost, most reliable cable system is built on high-quality manufacture of compounds and semi-conductive all the way through to the cable itself.

“Our approach with Dow Inside is to go to the marketplace itself and point out the importance of these quality standards. Quality standards around the world are very varied: some are demanding, while some are not. Standards tend to be negotiated in committees, which will go for the lowest common denominator, and so standards get diluted. In the end they become minimum standards, which I think is normal.

“But there are better alternatives. We see the opportunity for high-performance cables. Rather than change the standards, which can be a very long process, it is far better to have high-quality cables from the start and say these are the benefits that can be achieved. But this can only work if we have a combined collaborative approach in the industry,” said Penrice.

Ducab celebrates 30 years

Ducab, a leading manufacturer of high-quality power cables in the Middle East, showcased its latest technologies in cable manufacturing at this year’s Middle East Electricity Exhibition at the Dubai International Convention and Exhibition Centre. The company displayed products from its Special Cables Unit, launched a new range of Ducab Connect products, and hosted a series of joint seminars with Dow Wire & Cable and FM Sudafix. “This year Ducab is celebrating 30 years of powering the region as a manufacturing leader,” said MD Andrew Shaw. Ducab has launched a new office in Qatar and is also planning a number of expansions outside of the UAE market.