Flexible AC Transmission System Market in Australia

Flexible AC Transmission System in Australia Trends and Forecast

The future of the flexible AC transmission system market in Australia looks promising, with opportunities in the utility, renewable, industrial, and railway markets. The global flexible AC transmission system market is expected to reach an estimated $2.7 billion by 2031, with a CAGR of 7.9% from 2025 to 2031. The flexible AC transmission system market in Australia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are an expansion of transmission lines, an increasing need for STATCOM devices to regulate voltage, and escalating integration of renewable energy into power grids.

• Lucintel forecasts that, within the generation category, the second generation will remain the larger segment over the forecast period.
• Within the end use category, utility will remain the largest segment over the forecast period.

Emerging Trends in the Flexible AC Transmission System Market in Australia

The energy dynamics in Australia are transforming at a quickening pace, with greater dependency on renewable resources and the demand for intelligent grid solutions. This trend is driving the demand for Flexible AC Transmission Systems (FACTS), which are helping to increase the reliability, stability, and efficiency of grids. As Australia makes its way fast toward a decarbonized grid, the adoption of FACTS technology is becoming essential. Several novel trends are revamping the market, fueled by digital innovation, decentralization, and novel investment models specific to a low-emission energy future.

• Integration of AI for Real-Time Grid Control: Artificial Intelligence is being infused into FACTS solutions for real-time decision-making and fault detection. AI-based systems make grid resilience possible by anticipating fluctuations in load and planning system parameters beforehand. This ensures more effective transmission management, especially with variable renewable sources dominating the supply. AI also enables self-healing networks, saving time and money on maintenance. With these developing capabilities, utilities all over Australia are using smart FACTS systems more and more to ensure operational effectiveness and better quality energy.
• Increase of Modular FACTS Devices: Australia is witnessing a shift towards the use of modular FACTS technology because these systems can be scaled easily and are more cost-effective. They are more convenient to deploy as plug-and-play systems that enable utilities to tailor solutions according to regional grid needs. They also minimize major infrastructure overhauls. Decentralization in the energy market is facilitated through this trend as it allows for better integration of localized renewable energy sources. Modular FACTS are emerging as critical facilitators of agile, adaptive power grids that can change with Australian changing energy requirements.
• Emphasis on Offshore and Remote Grid Stability: As offshore wind and solar farms are increasing, stabilizing remote and underdeveloped grid segments is a focus. FACTS solutions are being designed to solve transmission issues in isolated or extreme environments. Utilities are using static VAR compensators and dynamic voltage restorers to stabilize varying loads in such regions. This improves power quality, reduces transmission losses, and provides a stable supply. These uses are critical since Australia is investing in offshore energy regions and seeking to enhance energy equity throughout rural areas.
• Hybrid AC/DC Transmission Strategies: One emerging trend is the integration of FACTS with HVDC systems to create hybrid AC/DC transmission lines. These methods leverage the flexibility of AC systems and the efficiency of DC transmission for long-distance and high-load corridors. In Australia, hybrid solutions are being developed in large-scale interconnectors connecting remote renewables to urban areas. They maximize energy flows, minimize losses, and offer redundancy in the event of system failure. This hybridization increases the reliability and resilience of the national grid.
• Private Investment and Vendor Partnerships: Private sector participation is increasing in the FACTS market, with companies providing performance-based schemes and co-investment frameworks. This phenomenon is driving the adoption of FACTS by reducing initial investments and aligning utilities’ and providers’ incentives. Partnerships with technology companies are also driving innovation in device development and control algorithm innovation. Such collaborations enable faster deployment and technology responsiveness, driving a more competitive and dynamic market climate for Australian grid modernization.

These nascent trends are reshaping the Flexible AC Transmission System market in Australia by fostering innovation, decentralization, and cooperation. The combination of AI, modular architectures, and hybrid systems is in line with the nation’s movement toward a flexible, renewable-fueled grid. As utilities tackle remote grid issues and adopt public-private models, FACTS technologies will take center stage in providing future energy stability, efficiency, and sustainability.

Recent Developments in the Flexible AC Transmission System Market in Australia

Australia’s grid modernization investment is driving recent advances in FACTS technologies to address the increasing needs for transmission flexibility and renewable integration. With energy generation becoming more dispersed and intermittent, FACTS solutions are being upgraded and implemented with enhanced functionalities. The following advancements indicate how utilities and industry stakeholders are addressing new challenges through strategic projects, pilot initiatives, and infrastructure upgrades that enhance system stability and efficiency in energy delivery.

• Deployment of STATCOMs in Renewable Areas: In recent years, sophisticated STATCOM systems have been deployed across major renewable energy areas. The equipment assists in voltage level control and stabilizes oscillating power inputs from wind and solar farms. Utilities are applying STATCOMs in areas such as New South Wales and South Australia to increase the robustness of regional grids and avert voltage sags or surges. The outcome is a more stable and predictable power supply, aiding grid operators in balancing the volatility that comes with renewable energy production.
• Pilot Projects for Smart Grid Synchronization: Australia has initiated several pilot initiatives to synchronize FACTS devices with larger smart grid infrastructure. The projects involve real-time data exchange between substations and FACTS devices to enhance coordination. For instance, AEMO-led projects are piloting synchronized control algorithms that adjust dynamically to changes in the grid. These pilots are laying the groundwork for more intelligent and responsive transmission systems that can adapt quickly to demand and supply fluctuations.
• Upgrades in Eastern Interconnect Infrastructure: The Eastern Interconnect, linking major states, is being upgraded through a series of FACTS-based improvements. These involve the incorporation of dynamic voltage regulators and phase-shifting transformers to enhance power flow along high-demand corridors. These upgrades play a key role in managing load balancing issues as inter-state electricity trading increases. They also introduce redundancy and enhance system flexibility so that energy from renewable-abundant areas can be effectively delivered to consumption centers without bottlenecks or overloads.
• Government Support for Grid Innovation Hubs: Government-backed financing is driving the development of energy innovation centers that pilot and prove new FACTS technologies. These centers serve as R&D facilities where utilities, universities, and vendors work together on scalable solutions. Backed by governments like ARENA, these projects have resulted in advancements in control software and small-footprint FACTS device development. Through supporting local innovation, Australia is reinforcing its technological dominance in flexible grid infrastructure.
• Expansion of Vendor Service Ecosystems: Major FACTS vendors are strengthening their service businesses in Australia through the setting up of local engineering, monitoring, and maintenance centers. This initiative facilitates quicker deployment and lifecycle support for installed facilities. Vendors can more effectively match grid conditions, regulations, and end-user requirements with a local presence. This also improves after-sales support and encourages closer customer relations. This ecosystem establishment is essential as utilities look for long-term, reliable partners for dealing with sophisticated transmission assets.


These new developments are driving the Flexible AC Transmission System market in Australia considerably forward. From STATCOM installations and smart grid pilots to vendor ecosystem development, the market is transforming with an emphasis on stability, innovation, and collaboration. The synergy between government policies, private investment, and technological innovation is speeding up the installation of smarter and more efficient grid solutions, positioning FACTS technologies as critical pieces of Australian energy future.

Strategic Growth Opportunities for Flexible AC Transmission System Market in Australia

Australia’s energy transition is gathering pace with a strong emphasis on grid modernization, integrating renewables, and optimizing power flows. Flexible AC Transmission Systems (FACTS) are at the core of facilitating such a transformation across key mission-critical applications. From industrial processes to renewable integration and grid stability, the need for next-generation FACTS solutions is growing. These technologies hold great potential for utilities, transmission operators, and technology suppliers to expand operations and address the changing energy needs of a decarbonized economy.

• Integration of Renewable Energy in Utility Grids: As large-scale solar and wind farms grow in Australia, the grid needs dynamic devices to deal with variable power inputs. FACTS technologies deliver real-time voltage and reactive power assistance, stabilizing transmission lines linked to renewable centers. This improves grid stability, minimizes curtailment of renewable power, and facilitates more ambitious clean energy goals. By facilitating smoother integration of intermittent sources, this use of FACTS has long-term growth prospects in Australia’s quest for a low-emission grid.
• City Load Management and Power Quality: Australian urban cities are undergoing increasing electricity loads fueled by population growth and electrification. FACTS devices are instrumental in sustaining power quality and dealing with voltage fluctuations in high-density load areas. They provide utilities with the ability to postpone expensive infrastructure expansions through the increase of capacity via existing networks. It not only enhances reliability and the level of customer service but is also an important source of cost savings and operating flexibility for urban power management.
• Heavy Industrial Operations and Mining: The industrial and mining industries in Australia need a highly stable and reliable power supply for uninterrupted operation. FACTS systems are becoming more widely utilized to counter power quality problems like voltage sags and harmonic distortion in these setups. Their utilization in industrial networks provides energy efficiency, reduces downtime in production, and safeguards delicate equipment. As these industries advance and grow, particularly in remote regions, FACTS technology has good scope for enabling sustainable and robust operation.
• Cross-Border Interconnection Projects: Australia is investigating large-scale transmission projects linking several states and potentially exporting clean energy. FACTS devices play a crucial role in ensuring stability over long transmission corridors and enabling high-voltage interconnections. They enable frequency balancing and voltage differences between networks, enhancing system compatibility and security. This growth area presents new opportunities for FACTS providers to engage in national energy planning initiatives and large-scale renewable export frameworks.
• Microgrid and Community Energy Projects: FACTS are being deployed more and more in microgrid applications to facilitate localized generation and distribution. These systems stabilize the voltage and balance load in stand-alone grids, commonly based on renewables in rural and island populations. By making energy independence and resilience at the community level possible, this application promotes national objectives in decentralization and energy equity. Expansion of community-based projects provides an avenue for small-scale FACTS deployment and grid-edge solution innovation.

These strategic prospects are redefining the function of Flexible AC Transmission Systems in Australia. With increasing demand for cleaner, smarter, and more secure grids, FACTS technologies are being applied across industries and geographies in diverse ways. Their scalability, flexibility, and capability to facilitate real-time grid management make them indispensable for facilitating energy transitions, improving grid performance, and driving infrastructure innovation in the Australian power sector.

Flexible AC Transmission System Market in Australia Driver and Challenges

Australia’s Flexible AC Transmission System market is influenced by an intricate combination of technological advancements, changing regulatory systems, and economic forces. While the market is being driven forward by increasing electricity demand, integration of renewable energy, and digitalization of grid infrastructure, obstacles such as technological complexity, infrastructure costs, and regulatory uncertainty prevail. On the other hand, there remain issues of heavy capital outlay, regulatory uncertainty, and interfacing with old systems. The ability to grasp these drivers and issues is important for stakeholders looking to navigate and succeed in this rapidly changing energy scenario.

The factors responsible for driving the Flexible AC Transmission System market in Australia include:
• Transition to Renewable Energy Sources: Australia ranks among the world’s leaders in the deployment of renewable energy. With increasing amounts of solar and wind power going into the grid, there is an urgent requirement for technologies to stabilize intermittent flows of power. FACTS devices play a crucial role in providing essential voltage regulation and reactive power compensation, facilitating increased penetration of renewables. Their function is critical in enabling national emissions reduction while ensuring grid reliability, and therefore, this is one of the most important drivers of market growth.
• Government Incentives and Energy Policies: Federal and state government funding programs and supportive energy policies are creating a favorable situation for FACTS deployment. Utilities are being urged to embrace innovative technologies by incentives for smart grid and renewable integration projects. Furthermore, policy focus on enhancing the grid infrastructure and reliability is closely aligned with the capabilities of FACTS solutions, further solidifying their relevance and adoption in both public and private sectors.
• Aged Grid Infrastructure Modernization: Large portions of Australia’s transmission infrastructure are old, aged decades, and require upgrading. FACTS provide an economically viable means of capacity and reliability improvement without complete replacement. By optimizing power flow and reducing losses, they increase the life of assets. This renders them a preferable choice for transmission operators who want to modernize networks efficiently, becoming a key driver of growth.
• Urban and Industrial Sector Growing Electricity Demand: As populations grow and industries develop, electricity demand is rising gradually in urban and industrial areas. FACTS make load growth easier to manage and voltage levels keep up, enabling operators to react to bursts of demand in a flexible manner. Their localized voltage support capability keeps the network less stressed, making them an essential solution for high-demand settings.
• Digital Transformation and Smart Grid Plans: Technological innovations in grid automation, digital twins, and predictive analytics are improving the value proposition of FACTS. These devices now seamlessly integrate with smart grid platforms, enabling real-time monitoring and automated response. This digital synergy is propelling their adoption as part of larger utility digital transformation strategies aimed at reliability, efficiency, and sustainability.

Challenges in the Flexible AC Transmission System market in Australia are:
• High Capital Costs and ROI Concerns: One of the primary challenges to FACTS adoption is the high initial investment. Although long-term savings and efficiency improvements are evident, utilities are wary because of tight budgets and unclear returns on investment. This will slow or reduce project authorization, particularly in markets with weak policy support or financial incentives.
• Integration with Legacy Systems: Much of Australia’s transmission infrastructure relies on older technologies that are not necessarily compatible with sophisticated FACTS solutions. The integration of new equipment into these networks involves complicated system redesign and training of skilled personnel. These integration issues can result in extended deployment schedules and increased engineering expenses.
• Regulatory and Approval Delays: Project approval delays, environmental studies, and grid connection permits can delay FACTS technology implementation. Variability in state regulatory environments further complicates deployment planning. Such impediments can defer rollout on time and raise the risk for utilities and technology suppliers alike.

Australia’s Flexible AC Transmission System market is being influenced by robust demand drivers and a distinct move towards renewable energy and digital grid management. Challenges in terms of cost, system integration, and regulation need to be overcome, however, in order to realize the full potential of the market. Navigating these dynamics successfully will allow stakeholders to reap the advantages of FACTS, enabling a stable, modern, and future-proof energy network.

List of Flexible AC Transmission System Market in Australia Companies

Companies in the market compete based on the product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, flexible AC transmission system companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the flexible AC transmission system companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7

Flexible AC Transmission System Market in Australia by Segment

The study includes a forecast for the flexible AC transmission system market in Australia by generation, product, end use, and application.

Flexible AC Transmission System Market in Australia by Generation [Analysis by Value from 2019 to 2031]:

• First Generation
• Second Generation

Flexible AC Transmission System Market in Australia by Function [Analysis by Value from 2019 to 2031]:

• Voltage Control
• Network Stabilization
• Transmission Capacity
• Harmonic Suppression

Flexible AC Transmission System Market in Australia by Application [Analysis by Value from 2019 to 2031]:

• Voltage Control
• Power Control

Flexible AC Transmission System Market in Australia by End Use [Analysis by Value from 2019 to 2031]:

• Utilities
• Renewables
• Industrial
• Railways
• Others

Features of the Flexible AC Transmission System Market in Australia

Market Size Estimates: Flexible AC transmission system in Australia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Flexible AC transmission system in Australia market size by generation, product, end use, and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different generations, products, end uses, and applications for the flexible AC transmission system in Australia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the flexible AC transmission system in Australia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the flexible AC transmission system market in Australia?
Answer: The major drivers for this market are an expansion of transmission lines, an increasing need for STATCOM devices to regulate voltage, and escalating integration of renewable energy into power grids.
Q2. What are the major segments for flexible AC transmission system market?
Answer: The future of the flexible AC transmission system market looks promising with opportunities in the utility, renewable, industrial, and railway markets.
Q3. Which flexible AC transmission system market segment will be the largest in future?
Answer: Lucintel forecasts that, within the generation category, the second generation will remain the larger segment over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the flexible AC transmission system market in Australia by generation (first generation and second generation), function (voltage control, network stabilization, transmission capacity, and harmonic suppression), application (voltage control and power control), and end use (utilities, renewables, industrial, railways, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Flexible AC Transmission System Market In Australia, Flexible AC Transmission System Market In Australia Size, Flexible AC Transmission System Market In Australia Growth, Flexible AC Transmission System Market In Australia Analysis, Flexible AC Transmission System Market In Australia Report, Flexible AC Transmission System Market In Australia Share, Flexible AC Transmission System Market In Australia Trends, Flexible AC Transmission System Market In Australia Forecast, Flexible AC Transmission System Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.