2015 was another busy year for Newton-Evans Research. Some of the studies conducted this past year covered new research topics. While our work was focused on client-commissioned studies, we obtained many insights from operational and engineering perspectives that will assist our research programs in 2016 as we once again conduct our flagship multiclient studies of protection and control, substation modernization, and operational control systems with utilities around the world. For over 30 years Newton-Evans has observed and reported on the fundamental shifts in operational systems and electric power infrastructure technology developments and usage patterns. In 2016, there will be additional changes in usage patterns, plans and outlooks among operational end engineering officials to note, both in North America and internationally.
Author: Chuck
Bumps in the Road to Grid Modernization – Caution Ahead?
The T&D Industry and Grid Modernization Efforts in the second half of 2015 – A Middling Performance – So What Lies Ahead for 2016?
While a number of energy industry pundits suggest that the T&D markets for infrastructure equipment and control systems always go up, I will revert to what another Newton stated a few centuries ago in his Third Law of Motion (“What goes up must come down”).
An informal survey of marketing/product managers being undertaken concurrently with the development of this article strongly suggests that we are in a “down” or at best, a “flat” year for much of T&D infrastructure and for the systems that monitor and control distribution networks. There are some exceptions as noted below.
A more formal study of CAPEX and OPEX plans among the world’s utilities will follow in the fourth quarter. The findings from this scheduled study will enable suppliers of equipment, systems and services to plan more appropriately for the coming two years. This will be the sixth edition of the Newton-Evans CAPEX/OPEX report that began with the financial crisis of 2008 and continued through 2013. Now that low load growth and low capital investments have again hampered the bumpy road to grid modernization, the timing for this study will be helpful.
In preliminary discussions with U.S.-based manufacturers, integrators and industry observers, it is clear that we have entered into a period of further uncertainty and limited investment capabilities for utilities, with some major infrastructure and grid modernization projects being delayed or deferred for months or even years. The significant industrial consumers of electric infrastructure products and smart grid equipment and systems are, in some cases, in a more difficult position than are electric utilities. With falling commodity prices, and the widening spread of corporate bond costs versus Treasury bond costs, the ability of many companies and utilities to source capital for investment is not as “low-cost” as current interest rates would have it. Continue reading Bumps in the Road to Grid Modernization – Caution Ahead?
First Quarter 2015 Projects Underway at Newton-Evans Research:
Study for CIGRE WG D2.38 – Operational Readiness for Cyber Threats. The Newton-Evans staff is conducting an international survey of electric utility IT and OT organizations to learn about the current status of preparations and readiness to minimize the impact of cyber threats. Utilities that participate with us in this “pro bono” study for CIGRE will be entitled to share in the findings and recommendations from the survey and from the guidance to be set forth in a 2016 CIGRE technical brochure.
2015-2017 Substation Automation U.S. Market Overview Series: Newton-Evans is in the process of releasing a new series of market synopses concerning 14 components of electric power substation modernization in the United States. Fourteen report summaries are available individually or as a complete series. Taken together the fourteen components reported in the series accounted for an estimated $1.7 Billion in 2014 shipments to U.S. utility and industrial customers. Growing at an average rate of about six percent, Newton-Evans expects 2017 shipment values to reach nearly $2 Billion.
Included in the series are these individual topics: SA01 – Remote Terminal Units; SA02 – Programmable Logic controllers; SA03 – Substation Automation Platforms; SA04 – Multifunction Meters and Recorders; SA05 – Inter-Utility Revenue Meters; SA06 – Digital Relays; SA07 – Digital Fault Recorders; SA08 – Sequence of Events Recorders; SA09 – Power Quality Recorders; SA10 – Substation Reclosers; SA11 – Substation Automation Integration Specialists; SA12 – Substation Communications; SA13 – Substation Voltage Regulators; SA14- Substation Precision Timing Clocks. The report summaries are available individually at $150 per report, or the group of 14 report summaries is available for only $975.00.
2015-2017 Protective Relay U.S. Market Overview Series: Newton-Evans is now underway with work to update the 2012 series on protection and control. A total of ten market summaries will become available on April 10. The P&C series will include the following topical summaries:
PR01 – Feeder Relays; PR02 – Transmission (Distance, Overcurrent, Line Differential) Relays; PR03 – Generator Relays’ PR04 – Bus and Busbar Relays; PR05 Transformer Protection Relays; PR06 – Motor Control Relays; PR07 – Electro-Mechanical Relays; PR08 – Drop-In Control Houses; PR09 – Synchrophasors (PDUs/PDCs); PR10 – Teleprotection. The report summaries will be available individually at $150 per report, or the group of 10 report summaries will be available for $875.00.
Worldwide Study of the Protective Relay Marketplace In Electric Utilities (2015-2017). Newton-Evans staff is preparing to undertake a major update to the four volume flagship study of protective relay use in utilities around the world. We need to hear back from interested parties as to whether this study should be scheduled for a spring kick-off or whether we should defer work on this massive study until autumn 2015. Early commitments will mean lower subscription prices and earlier reports availability. Please provide your thoughts and information requirements on the study’s timing and desired content to us.
Commissioned Studies: Privately funded studies this first quarter include North American assessment of the recloser market; cyber security topics; ADMS market overview; software module pricing for AMI-OMS related systems; new compilation of North American EHV/HV and MV substations, transmission and distribution line mileage totals. (By state and by type and size of utility).
Utility Plans Call for Continuation of Substantial Investment in North American Distribution Grid Automation Programs
Findings Corroborate Earlier Newton-Evans Studies Regarding “Mixed” Placement of Controls of Field Devices
The Newton-Evans Research Company today released key findings from its newly published study of electric utility plans for distribution automation. Entitled “North American Distribution Automation Market Assessment and Outlook: 2015-2017” the 89-page report includes coverage of more than 35 DA-related issues.
Progress Being Made with Distribution Automation Programs:
North American utilities are making good progress in developing and implementing new DA applications and telecommunications network upgrades. The overall DA market among North American utilities is approaching one billion dollars and will continue to grow each year for the foreseeable future.
DA Controls Placement:
The placement of DA controls for field devices remains mixed. While some see controls being distributed to field locations, others are placing controls on substation automation platforms, while an even larger group is using control center systems-based approaches (centered on SCADA-DMS systems).
The outlook for controls placement in the future shows that utilities are bringing more controls for fault detection, isolation and service restoration (FDIR/FLISR) and for volt/var control (VVC) into the control center as shown in these charts.
Automatic Fault Sensing:
Devices providing information such as hot line status and fault indications are becoming a mainstay in many utility DA programs. IOUs and Canadian utilities were more likely to be using automatic fault sensing devices than were their counterparts at electric cooperatives or public power utilities. Usage patterns and plans for AFS devices were strongest among the respondent subgroup of very large utilities (those serving more than 500,000 customers). Of the subgroup using AFS devices, about one-third actively utilize the status of such devices in their DA schemes.
Integration of Communications and Controls for Distributed Generation into DA System Architecture:
By year-end 2014, only about 16% of utilities indicated some use of DA-related communications/controls while another 14% plan to integrate these for DG purposes by year-end 2017. In a related question, well over one third of the respondents indicated that they have a trial deployment to manage distributed energy resources within the DA system either underway or planned.
More than 30 additional topics are covered in the 2015-2017 Newton-Evans DA report. Seventy five major and mid-size utilities were surveyed and interviewed to gather the information for the report. This group provides a substantial sample, accounting for 20% of served customers and 19% of primary feeders across North America.
A supplemental North American DA market outlook synopsis for the years 2015 through 2020 will be released in March. The outlook supplement will provide DA market outlook information based on type, size and regional location of utilities.
Additional information on the North American Distribution Automation Market Assessment and Outlook: 2015-2017 report is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone 1-410-465-7316 or write to info@newton-evans.com
2014 Autumn Electric Power Conference Season Well Underway
For the electric power industry, late summer through mid-autumn brings a number of conferences to the forefront each year or at least every two years.
This year is no exception. From the international CIGRE Conference held in Paris every two years, to the annual EMMOS conference and Southeast Distribution Apparatus Conference, there are lessons to be learned and topics of interest to those following industry trends. The CIGRE conference provides information on key electric power topics, while EMMOS focuses on large control systems used by utilities and independent systems operators (ISOs). The SDAC offers briefings and training on a variety of power distribution topics, ranging from meter management to control systems to cyber security.
In late August I attended and participated in my 10th CIGRE conference. This year set a new record for attendance (more than 3,000 delegates and another 5,000 visitors) and the number of exhibitors and working group sessions also reached new heights. One of the more interesting observations for me has been to witness the growth in CIGRE participation by utilities and T&D equipment and systems companies from North America. Delegates are either actively volunteering on working groups or doing booth duty for an increasing presence of large-to-small North American companies whose equipment, systems and services are part of the exhibition.
Continue reading 2014 Autumn Electric Power Conference Season Well Underway
What to Expect Next: Potential Synergies of the Alstom (Power and Grid) Acquisition by General Electric
As many long-term readers of Newton-Evans’ reports and articles knew from our assessment reported in 2009 there were back then three major contenders for the $7 billion Transmission and Distribution business units of the old Areva T&D Corporation. These were the American firm General Electric, the French corporate combination of Alstom and Schneider Electric, and the Japanese company, Toshiba. In the end the French government simply divided Areva T&D in half, and placed the “T” business into Alstom and the “D” business into Schneider Electric.
On June 21, 2014 GE was informed that Alstom’s board of directors decided to recommend GE’s offer to acquire the Power and Grid business of Alstom Corporation. These units are: Alstom Power (generation assets) and more importantly for this assessment, Alstom Grid, the HV and control systems components of the old Areva T&D business. The “D” business of Areva has now become a core business within the capable Schneider Electric camp of medium voltage equipment offerings.
Newton-Evans Research believes significant benefits to GE’s efforts targeting the global electric power industry will accrue if the company staffs truly work synergistically. Here are six key reasons for this view, in our opinion:
(1) IMPROVED WORLD MARKET ACCESS: GE will gain improved access to European electric power markets and other world regions with long-established relationships nurtured by Alstom and predecessors under the French management and government policies, which may continue under GE ownership, now that the French government is slated to become a significant shareholder investor in Alstom securities. Keep in mind that GE has more than a century of experience and accomplishments in France. I can recall visits to Belfort in eastern France and visiting both GE and Alstom (Areva) factory sites.
(2) ATTAINMENT OF ORGANIC GROWTH: GE Energy Management will again be able to lay claim to some real growth within 24 months of the close of this acquisition. Growth will come from both inorganic sources (via this acquisition – itself worth more than $4 Billion in current year sales of Alstom Grid products, systems and services) and organic growth (through increased interest in, and procurement of all combined GE-Alstom equipment, products and services). Each of the four component businesses of GE Energy Management including: Digital Energy, Industrial Solutions, Power Conversion and Energy Consulting will each benefit significantly if all goes as planned and envisioned in early July 2014. The big issue we see is whether Atlanta and Toronto will report in to Paris, or whether the reverse will be true.
(3) REDUCTION IN OFFERINGS “GAP”: GE will be able to fill several significant product/equipment gaps in its electric power transmission and distribution product line and related automation offerings. This will result in significant mid-term benefits to GE Digital Energy. However, a key issue for GE will be the “branding” of product offerings going forward from midyear 2015.
(4) MARKET-LEADING POSITION IN POWER GENERATION: Alstom’s power business includes assets for power generation such as turbines for coal, gas and nuclear power plants, wind farms while GE is a co-leader in both fossil, nuclear, hydro and renewables businesses.
(5) INCREASED SHARES OF OPERATIONAL CONTROL SYSTEMS: While GE’s EMS offerings have had somewhat limited success beyond North America, it’s DMS, OMS and GIS offerings are well-respected and are high quality offerings. Alstom Grid is a world leader in EMS, with a world-class group of systems for power transmission and distribution. The company’s “e-terra” line of systems is the leading market shareholder among critical T&D operational control systems used in the global electric power industry. The company also has developed a growing customer base among large utilities for advanced distribution network management with its IDMS offering. If the companies’ technical and product marketing teams work together as they have over time on various technical committees (IEEE, IEC, CIGRE et al) and provide smooth cross-systems integration capabilities, the company will be a force to be reckoned with in the world market for control systems. GE has a strong substation modernization/automation business focus across all components (systems, products, intelligent devices, communications equipment) that leads the North American market and is a growing force internationally.
GE Energy Management will likely become a major player in several growing portions of the transmission equipment business, establishing a stronger foothold in the North American and international transmission market segments described below. Together these segments are worth $32-40 billion on a worldwide basis. Newton-Evans’ estimates that Alstom Grid earned about $3.5 billion to $4.1 billion in HV equipment sales in 2013.
Here is our take on the gains to be realized for both electric power infrastructure and electric utility automation and services:
FACTS and Reactive Power Compensation:
ABB is probably the global leader in flexible AC transmission systems and the related reactive power compensation segment of high voltage equipment for transmission networks. Siemens Energy is a strong number two supplier with several others (notably Mitsubishi Electric Power Products, and American Superconductor) also active in North America, and around the world. Alstom Grid and GE are also participants that together could challenge the market leading positions of ABB and Siemens within three years of a merger of product lines.
HVDC Equipment:
Siemens is the market leader in HVDC, with ABB a reasonably close second place share holder and MEPPI the likely third most important player. However, an integrated Alstom Grid-General Electric product grouping would enable the company to attain up to a quarter of the available market shares.
Gas Insulated Substations/Switchgear:
The North American market for High Voltage GIS equipment is in excess of a quarter billion dollars. While Alstom Grid has only a small share (stronger in Canada than in the US), GE Energy could now present itself as a player in this growing market segment of high voltage switchgear. GE would also play a much more important role in international markets where – unlike in North America – GIS equipment is prevalent. Globally, GIS equipment is a 2-3 billion dollar annual market.
High Voltage Bushings:
This relatively small (about $125-150M in annual worldwide sales) market is led by Siemens and ABB. However, the combined Alstom Grid and GE offerings could make GE into a formidable player in this segment.
High Voltage Capacitors:
GE Energy is already the major participant in the North American market for HV capacitors, but globally, ABB is the leader. Alstom Grid, by virtue of its recent acquisition of the Finnish manufacturer, Nokian Capacitors, is also a very strong player in Northern Europe. Together, the product lines could pose a real threat to ABB dominance here (yet another billion dollar global product segment).
High Voltage Circuit Breakers:
Alstom Grid is already a major player globally, and with GE’s “sales boots on the ground” could significantly increase its share in North America and abroad. ABB and Siemens are both very strong manufacturers in this large annual global market of better than $2 billion.
Disconnect Switches:
High voltage disconnect switches are vital components of many transmission systems, and the global market runs to about $500 million annually. GE and Alstom Grid are among the six leading suppliers of disconnect switches in North America, but lag behind Hubbell, S&C and Southern States, some of which offer circuit switchers used for disconnect applications.
Large Power Transformers:
Alstom Grid is number three in the world in terms of large power transformer market share and assets, operating 13 plants with an annual production capacity of more than 130 MVA. GE Prolec is a major North American market force with about a 14% share of the U.S. market. Together, this alliance may become number three in the global market for LPTs behind ABB and Siemens). To do so, the GE-Alstom combine will have to fend off HICO, Hyundai, Toshiba and MEPPI as well as three up-and-coming Chinese manufacturers.
Instrument Transformers:
The market for high voltage instrument transformers had been dominated by specialist “independent” manufacturers until recently. A recent buying spree had Siemens acquiring Trench Electric, Alstom Grid acquiring Ritz and ABB acquiring Kuhlman. Currently, the market for HV IT equipment is shared primarily by these three firms, with GE very active in the MV segment. Together, the combined HV/MV instrument transformer offerings of an integrated GE-Alstom Grid would change the shape of this market, which in North America alone hovers around $100 million, and close to one-half billion dollars worldwide.
Air Core Reactors:
Another component of some transmission network architectures, Siemens-Trench and Alstom Grid-Ritz are key players, with GE also strong and MEPPI further behind, but with a growing share. A number of smaller participants account for a rather large share of this $400 million global business.
Surge Arresters:
Another sizable market in its own right (about $1 billion per year globally) high voltage surge arresters are manufactured by a number of US-based firms such as Hubbell, Thomas & Betts, and Cooper Power, each of which competes quite successfully against the likes of ABB, Siemens and GE.
Automation Systems:
GE’s older XA/21 EMS platform and Alstom Grid’s highly rated E-Terra offerings are both held in high regard around the world, although GE’s systems are mainly installed in the USA. By year-end 2015 and more likely into 2016, General Electric-Alstom Grid will see benefits from world-leading combined market shares in substation automation, protection and control and T&D control systems (energy management, DMS, OMS, GIS and SCADA). Earlier (1990’s era) acquisition efforts have been fraught with initial business unit integration problems (to wit- ABB with its acquisition of the older Ferranti EMS business (Spider v. Ranger offerings) and Siemens-Control Data (Sinault-Spectrum v. Empros).
Substation Modernization:
If protective relays are included in the mix of substation modernization, then the collaborative efforts of GE and Alstom will lead to a global co-leadership market position across the board. Alstom Grid enjoys a strong position with transmission class relays and related MiCOM systems and equipment, and has been fairly strong participant in the global market for substation automation. GE enjoys a strong position in protective relays in North America (number two supplier) and in some Western European and Asian markets, and does make the list of qualified suppliers elsewhere.
Protection and Control:
Internationally, Alstom Grid (with part of the Stafford, UK-based relay business) holds an estimated 16% share of the global protective relay market (outside of the U.S.), estimated by Newton-Evans to be about $2.4-$2.6 billion this year. GE Multilin, based in Toronto, is also a very strong market participant, especially in the Americas, and is the leader in industrial protection and control markets.
T&D Services:
GE is a major participant in T&D equipment repair and services, especially with its transformer repair business, and Alstom Grid outside of North America earns about $550 million per year with its array of high voltage equipment services and global agreements for automation systems maintenance and upgrades.
Let’s not count this as a “done deal” quite yet. I do believe it is now very likely to be seen through by all parties (GE, Alstom, French government, possibly various international courts). The important role of Alstom’s minority shareholders and their reaction to the GE acquisition is somewhat unclear as is the role the French government’s strong minority ownership position will play. GE has made significant concessions regarding job retention among the French workforce, and has promised to add another 1000 jobs in the country. This could have ripple effects on its global workforce, especially if workforce reductions take place.
The following chart (used with permission of General Electric) illustrates the current state of the acquisition and the alliance formation.
U.S. Sales of Medium Voltage Equipment, Components and Related Services Accounted for More than $11 Billion in 2013, Forecast to Reach $13 Billion by 2016.
May 19, 2014. Ellicott City, Maryland. The Newton-Evans Research Company has announced the publication of a series of 18 electric power distribution market two-page snapshot market summaries. The new series of market overview reports (executive market summaries) includes supplier listings, representative products, and estimated market size for each topic, vendor market share estimates and market outlook and growth factors through 2016. Electric utilities accounted for nearly two-thirds of purchases of the medium voltage product categories in this series, with industrial and commercial segments accounting for about one third of the value of MV equipment shipments. A majority of the included equipment and products continue to be manufactured and/or assembled in the United States.
The Medium Voltage equipment market overview series is priced at $1,500 for all 18 market summary reports, or at $150.00 for individual report summaries. Each snapshot report include product definitions, estimates of 2013 U.S. market size, supplier market shares and the outlook through 2016 for these categories: MV01 – Air Insulated Metal Clad Switchgear; MV02 – MV Motor Controllers; MV03 – MV Gas Insulated Switchgear; MV04 – Automatic Circuit Reclosers; MV05 – Outdoor Distribution Circuit Breakers (5-38kv); MV06 – Load Interrupter Switchgear; MV07 – Overhead Disconnect Switches (15-38kv); MV08 – Sectionalizers; MV09 – Fused Cutouts; MV10 – Pad Mounted Switchgear; MV11 – Submersible Switchgear; MV12 – Bus Duct and Bus Bar ; MV13 – Substation Class Pad Mounted Capacitors; MV14 – Current/Instrument Transformers; MV15 – Fault Current Limiters; MV16 – Fault Current Indicators and Faulted Circuit Indicators; MV17 – Current Limiting Fuses and Fuse Links; and MV18 – Surge Arresters.
Other U.S. T&D market snapshot series to be updated during the next three months include power transformers (11 market segment snapshots), protective relays (8 market segment snapshots) and substation automation components (13 market segment snapshots). The next market overview series to be released covers 12 component topics related to distribution automation. The DA series is planned for publication in June, 2014.
Further information on each series of U.S. T&D market snapshots is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit www.newton-evans.com for a brochure or to place an order for any of the related report series or more than 85 individual T&D report summaries online. For subscriptions to all of the currently available report series, please call or email us for special introductory pricing offers. For more information send an inquiry to info@newton-evans.com
Here We Go Again: Potential Synergies of an Alstom (Power and Grid) Acquisition by General Electric:
As many long-term readers of Newton-Evans’ reports and articles knew from our assessment reported in 2009 there were then three major contenders for the $7 billion Transmission and Distribution business units of the old Areva T&D Corporation. These were the American firm General Electric, the French corporate combination of Alstom and Schneider Electric, and the Japanese company, Toshiba. In the end the French government simply divided Areva T&D in half, and placed the “T” business into Alstom and the “D” business into Schneider Electric.
This past week, there have been widely circulated rumors of another attempt by GE to acquire Alstom’s power business, principally Alstom Power (generation assets) and Alstom Grid, the HV component of the old Areva T&D business. The “D” business of Areva is now squarely in the capable Schneider Electric camp of medium voltage equipment offerings.
Newton-Evans Research believes there could be significant benefits to GE’s efforts targeting the global electric power industry if the company’s current purported acquisition attempts bear fruit. There are four key reasons for this view, in our opinion:
(1) As reported by others, GE will gain improved access to European and other world regions with long-established relationships nurtured under the French management and policies, which are likely to continue under GE ownership.
(2) GE Energy Management will again be able to lay claim to some real growth within 24 months. These increases will come from both inorganic growth (via this potential acquisition – itself worth about $4.5 Billion in current year sales of Alstom Grid products, systems and services) and organic growth (through increased interest and procurement of all GE Energy Management equipment, products and services). The four component businesses of GE Energy Management include: Digital Energy, Industrial Solutions, Power Conversion and Energy Consulting. These will each benefit significantly.
(3) GE will be able to fill several significant product/equipment gaps in its electric power transmission and distribution product line and related automation offerings. This will result in significant mid-term benefits to GE Digital Energy.
(4) Alstom’s power business includes assets for power generation such as turbines for coal, gas and nuclear power plants, and wind farms. Alstom Grid offers a world-class group of control systems for power transmission and distribution as well as many leading transmission-class equipment offerings. The company’s “e-terra” line of systems is the leading market shareholder among critical systems used in the global electric power industry.
A successful acquisition by General Electric would provide the firm with world-leading combined market shares in substation automation, protection and control and T&D control systems (energy management and SCADA). GE Energy Management would become a major player in several growing portions of the transmission equipment business, establishing a stronger foothold in the North American and international transmission market segments described below. Together these segments are worth $32-40 billion on a worldwide basis. Newton-Evans’ estimates that Alstom Grid earned about $3.5 billion to $4.1 billion in HV equipment sales in 2013.
FACTS and Reactive Power Compensation: ABB is probably the global leader in flexible AC transmission systems and the related reactive power compensation segment of high voltage equipment for transmission networks. Siemens Energy is a strong number two supplier with several others (notably Mitsubishi Electric Power Products, and American Superconductor) also active in North America, and around the world. Alstom Grid and GE are also participants that together could challenge the market leading positions of ABB and Siemens within three years of a merger of product lines.
HVDC Equipment: Siemens is the market leader in HVDC, with ABB a reasonably close second place share holder and MEPPI the likely third most important player. However, an integrated Alstom Grid-General Electric product grouping would enable the company to attain up to a quarter of the available market shares.
Gas Insulated Substations/Switchgear: The North American market for High Voltage GIS equipment is in excess of a quarter billion dollars. While Alstom Grid has only a small share (stronger in Canada than in the US), GE Energy could now present itself as a player in this growing market segment of high voltage switchgear. GE would also play a much more important role in international markets where – unlike in North America – GIS equipment is prevalent. Globally, GIS equipment is a 2-3 billion dollar annual market.
High Voltage Bushings: This relatively small (about $125-150M in annual worldwide sales) market is led by Siemens and ABB. However, the combined Alstom Grid and GE offerings could make GE into a formidable player in this segment.
High Voltage Capacitors: GE Energy is already the major participant in the North American market for HV capacitors, but globally, ABB is the leader. Alstom Grid, by virtue of its recent acquisition of the Finnish manufacturer, Nokian Capacitors, is also a very strong player in Northern Europe. Together, the product lines could pose a real threat to ABB dominance here (yet another billion dollar global product segment).
High Voltage Circuit Breakers: Alstom Grid is already a major player globally, and with GE’s “sales boots on the ground” could significantly increase its share in North America and abroad. ABB and Siemens are both very strong manufacturers in this large annual global market of better than $2 billion.
Disconnect Switches: High voltage disconnect switches are vital components of many transmission systems, and the global market runs to about $500 million annually. GE and Alstom Grid are among the six leading suppliers of disconnect switches in North America, but lag behind Hubbell, S&C and Southern States, some of which offer circuit switchers used for disconnect applications.
Instrument Transformers: The market for high voltage instrument transformers had been dominated by specialist “independent” manufacturers until recently. A recent buying spree had Siemens acquiring Trench Electric, Alstom Grid acquiring Ritz and ABB acquiring Kuhlman. Currently, the market for HV IT equipment is shared primarily by these three firms, with GE very active in the MV segment. Together, the combined HV/MV instrument transformer offerings of an integrated GE-Alstom Grid would change the shape of this market, which in North America alone hovers around $100 million, and close to one-half billion dollars worldwide.
Air Core Reactors: Another component of some transmission network architectures, Siemens-Trench and Alstom Grid-Ritz are key players, with GE also strong and MEPPI further behind, but with a growing share. A number of smaller participants account for a rather large share of this $400 million global business.
Surge Arresters: Another sizable market in its own right (about $1 billion per year globally) high voltage surge arresters are manufactured by a number of US-based firms such as Hubbell, Thomas & Betts, and Cooper Power, each of which competes quite successfully against the likes of ABB, Siemens and GE.
Automation Systems: GE’s long-established XA/21 EMS platform and Alstom Grid’s highly rated E-Terra offerings are both held in high regard, although GE’s systems are mainly installed in the USA. Earlier (1990’s era) acquisition efforts have been fraught with initial business unit integration problems (to wit- ABB with its acquisition of the older Ferranti EMS business (Spider v. Ranger offerings) and Siemens-Control Data (Sinault-Spectrum v. Empros).
Protection and Control: Internationally, Alstom Grid (with part of the Stafford, UK-based relay business) holds an estimated 16% share of the global protective relay market, estimated by Newton-Evans to be about $2.2-$2.4 billion on an annual basis. GE Multilin, based in Toronto, is also a very strong market participant, especially in the Americas, and is the leader in industrial protection and control markets.
T&D Services: GE is a major participant in T&D equipment repair and services, especially with its transformer repair business, and Alstom Grid outside of North America earns about $550 million per year with its array of high voltage equipment services and automation systems maintenance agreements.
We will soon see learn whether and how the French government will allow Alstom to sell off all but its transportation business to a “foreign” company. GE will likely have to make significant concessions regarding job retention among the French workforce. This could have ripple effects on its global workforce.
Newton-Evans Releases First Volume of 2014-2016 Substation Automation Series
The Newton-Evans Research Company has released findings from the North American volume (Volume 1) of its newly published four volume research series entitled: The World Market for Substation Automation and Integration Programs in Electric Utilities: 2014-2016. The new study compares the current round of research findings with several earlier substation modernization tracking studies conducted by the firm. More than 75 large and mid-size North American electric power utilities actively participated in this multi-part study. Investor-owned utilities, public power utilities, cooperatives and Canadian provincials and municipals took part in this complex study involved more than 400 survey data items.
Newton-Evans Research estimates the current mid-range of North American spending for substation automation and integration programs at $690 million, with an overall potential market size of nearly $10 billion. Global potential spending for substation modernization programs is estimated at about $38-$40 billion. This amount includes spending for a wide range of intelligent substation-resident equipment and devices and the manpower to undertake the systems integration efforts required.
Additional Observations:
1) The years 2008-2009 were slow growth years – while the 2010-2013 years provided moderate-to-good growth in most categories of intelligent electronic equipment sales related to the modern, increasingly digital, electric power substation. The pool of funding for substation automation projects increased during 2010-2013 thanks in part to the stimulus funds made available by the U.S. Department of Energy, with most of this amount now spent.
2) Newton-Evans further estimates that only about 12-15% of utility operated substations in North America have been fully automated and integrated by year end 2013. Most of these fully automated installations are in fact being reported as newly or recently constructed transmission voltage substations.
3) It is becoming more difficult to separate substation product classifications as equipment manufacturers tout their offerings as “multifunctional” and the product positioning of many intelligent electronic devices now cuts across multiple product classifications.
4) Most substation equipment manufacturers (mid size and smaller companies) and systems integrators surveyed in the second half of 2013 have indicated moderate-to-good growth market conditions within their addressable utility market segments, resulting in sales that are as much as 10-20% higher than 2010-2012 sales levels. The substation automation market outlook for 2014 is also for moderate to good year-on-year growth, continuing through 2016. Looking ahead to 2014-2016, substation retrofit programs are planned to be undertaken only for the most critical of distribution substations, while new electric power T&D substations will benefit from increased spending for integration and automation.
5) The outlook for increased reliance on commercial services providers working in substation modernization activities is strongly positive. Third party engineering and integration service firms have recently made significant strides in winning substation automation-related business, from planning to design to construction and equipment installation.
6) Utility manpower shortages and funding issues continue to negatively impact the ability of technology supplier companies to engage utilities for other than short-term automation requirements. In states and provinces wherein regulators have approved strong incentives for reliability improvements or for transmission line extensions, the spending outlook is robust.
7) North American utilities continue to strongly support DNP 3, and many have now implemented, or are migrating to, a LAN version of this protocol. This year’s study has found some increase in plans for use of at least some portions of 61850 within a few dozen of North America’s largest utilities. The use of encryption techniques for transmission of substation data is also growing.
8) In summary, retrofit substations will be upgraded as warranted during 2014-2016, based on regional load growth, load criticality to customers, and related distributed generation and renewables siting developments. New substations will increasingly be designed and constructed as integrated and automated remote assets for the utility. The current study finds the bulk of available substation automation budgets likely to be spent for new substations, primarily for transmission substations.
Additional topics being covered in the four volume series of substation automation studies include in-depth coverage of several communications topics, vendor security certification requirements, external systems linkages to the substation, preferred equipment suppliers, substation timing requirements, and an assessment of how North America’s electric power substations are positioned along a three-step path to complete automation.
This newest edition of this flagship Newton-Evans study features excerpts from other recent substation research programs, including precision timing requirements; CAPEX/OPEX outlook; dynamic line rating systems and synchrophasor-related monitoring systems; the expanding role of relay-centric devices and imbedded sensors; and user-reported vendor preferences for 21 specific substation-resident equipment categories.
Additional information on the North American substation market report, and the other three reports comprising the four volume study “Worldwide Market for Substation Automation and Integration Programs in Electric Utilities:2014-2016” is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042.
Phone 1-410-465-7316, write to info@newton-evans.com and see our reports page for more details.
An introductory price of only $1,495.00 for Volume One is available to new subscribers.
New Report from Newton-Evans Emphasizes U.S. Know-How and Capacity to Forge a Modern Electric Power Grid
Study entitled “American Manufacturing and Systems Integration Capabilities for Power Grid Modernization” Provides Specific Guidance from Manufacturers and Systems Integration Firms concerning Readiness to Serve
September 25, 2013. Ellicott City, Maryland. Newton-Evans Research believes that American manufacturers can accommodate more rapid growth in U.S. grid modernization efforts than currently exists. Based on repeated surveys of several of the key manufacturing companies active in grid modernization product development and firms involved with grid management and control systems integration activities, there is sufficient manufacturing and integration capacity to meet expected demand levels for almost all core components of the smart grid investment grant program identified by the U.S. Department of Energy as well as additional grid modernization components studied by Newton-Evans Research Company. The latter group includes the intelligent electronic devices required for various automation projects from transmission and distribution level applications down to smart infrastructure equipment.
Regarding the nation’s ability to increase systems integration workloads and capabilities, there is sufficient integration expertise available to expand usage levels of the following: (1) dynamic transmission line rating systems; (2) synchrophasor-related monitoring systems used in the nation’s high-voltage transmission networks; (3) operational control systems deployed for power generation management, transmission and distribution network operations and outage management; (4) information technology with which to intelligently manage deployments of grid modernization components, including telecommunications and analytical tools.
Newton-Evans’ ongoing discussions and formal studies with suppliers, appropriate consultants and utilities have enabled the research firm to develop an independent update and prepare a fresh outlook for each of the DOE-identified smart grid components and a number of additional grid modernization components studied on a repetitive basis by Newton-Evans. Nationwide grid modernization efforts could be largely completed by 2040, including widespread deployment of a variety of scalable energy storage devices sited along the electric power delivery network and at customer premises, according to these observations and insights.
The core technologies identified as smart grid investment grant (SGIG) program components by DOE and discussed anew in this report are as follows: Energy storage, dynamic line rating (DLR), operational control and monitoring systems including SCADA and energy management, distribution management system, Advanced Distribution Automation (ADA) and outage management systems, synchrophasors, advanced metering infrastructure, smart meters, home-area networks and smart electricity loads
In addition, Newton-Evans has included observations from its own related studies of other essential components of grid modernization. These additional grid modernization components include substation modernization programs, protection and control activities, cyber security developments, time synchronization and a variety of grid infrastructure equipment.
Newton-Evans also conducted its fifth tracking study of capital investment in grid modernization during the summer of 2013. This new report includes key excerpts from findings reported in the company’s report Global CAPEX and O&M Expenditure Outlook for Electric Power T&D Investments: 2013-2014.
The 41 page report is priced at $975.00 and is available on our reports page.
Utility CAPEX/OPEX Report Published with Results of April-July 2013 Newton-Evans Study of Electric Power T&D Investment
Ellicott City, Maryland – July 24, 2013: The Newton-Evans Research Company today announced the publication of its fifth study in the multi-year tracking research program looking into electric power utility capital expenditures or CAPEX budgets related to smart grid investments and infrastructure spending plans.
Findings from the second and early third quarter 2013 Newton-Evans global tracking study of electric power transmission and distribution investment remain positive, comparable with the four earlier tracking studies conducted in 2008, 2009, 2010 and 2011. Each of six “smart grid” component areas, plus transmission and distribution infrastructure development, has been reported by utilities located in 30 countries to more likely be either “increased” or “unchanged” rather than “decreased” from the last study. The highest percentages of officials reporting CAPEX increases were in the areas of transmission infrastructure and protection and control, followed by distribution infrastructure and control systems.
O&M budgets reflect a somewhat upbeat story as well. Several categories of O&M spending were more likely to see an increase from the OPEX budgets of two years ago. Distribution infrastructure and Distribution Automation both have gained some budget increases. Overall, international utility officials were more likely to indicate increases in both CAPEX and OPEX spending allocations for the majority of grid modernization topics.
Read the archived news release here.
This report is available on our reports page for $495.00. Feel free to call (410-465-7316) or email info@newton-evans.com for more information.
Third New Market Study in July: Observations and Overview of the U.S. Market for Fuse Links, Power Fuses and Current Limiting Fuses Among Mid-sized Electric Utilities.
This new 40 page market report is based on a survey of mid-size utilities regarding usage levels and brand preferences for fuse links, power fuses, and current limiting fuses. The report looks at the most common amp ratings, key manufacturers, budgets and annual usage levels of fuse links, power fuses and current limiting fuses among the sample, and offers projections to the entire U.S. market. The power fuse section also looks at indoor versus outdoor applications and refillable versus one time use units. Voltage and current combinations are charted by usage levels for current limiting fuses. “Observations and Overview of the U.S. Market for Fuse Links, Power Fuses and Current Limiting Fuses Among Mid-sized Electric Utilities” is priced at $675.00 and is available for purchase on the reports page.
This is the third Newton-Evans market report published this month, joining the “Mid-2013 Assessment and Outlook for the North American Market for HV and MV Instrument Transformers” and the “Mid-2013 Assessment and Outlook of the Market for Medium Voltage Fault Current Limiters.”
New Report from Newton-Evans: Mid-2013 Assessment and Outlook for the North American Market for HV and MV Instrument Transformers
This new study of High Voltage and Medium Voltage Instrument Transformers shines a light on the growing requirement for additional current and voltage transformation equipment in electric power substations as more intelligent electronic devices are installed both in the substation and on the grid. From protective relays to substation meters to additional substation-based intelligent electronic devices, all require a reliable lower voltage, lower current power source to enable device operation.
According to Chuck Newton, “Newton-Evans Research undertook initial research on the topic of high voltage (HV) instrument transformers in mid-2012, then continued earlier this year for a private client study. Now, as follow-on to these efforts, Newton-Evans has extended its efforts into medium voltage (MV) instrument transformers during the second and early third quarters of 2013.”
Following are some key observations based on the HV/MV IT research program described in the report:
• By 2016, the combined HV/MV IT market will likely grow to more than $400 million annually with about $340-$370 million in U.S. expenditures and $50-$65 million spent by Canadian utilities and industry.
• Cumulative shipments of HV/MV instrument transformers within North America during 2013-2016 will approach $1.5 Billion.
• The manufacturing of HV IT equipment has a high “concentration ratio” (CR3) of suppliers.
• MV IT equipment manufacturing is less concentrated, with the medium voltage IT market addressed by several additional participants. (CR8).
• Sub-transmission level IT equipment, if viewed as a separate segment, would reveal additional market segment suppliers identified in the report.
• The spate of acquisitions a few years ago, involving the acquisition of the three leading “independent” HV IT equipment manufacturers (Trench, Ritz and Kuhlman) by Siemens, Alstom Grid and ABB, respectively, foreshadowed then-anticipated growth in this segment of the IT market in North America. Now, this T&D market segment continues to show promise in light of the construction and installation of new substations and quickening pace of grid modernization programs.
More information on this report, priced at $575.00, can be found by clicking on the”Reports” tab.
Fault Current Limiters: Newton-Evans Market Assessment and Overview through 2016
Newton-Evans Research Releases Report on Fault Current Limiters
This new (July 2013) publication is entitled: Mid-2013 Assessment and Outlook of the Market for Medium Voltage Fault Current Limiters. Newton-Evans began research work during the past year on a study of the U.S. market for Medium Voltage Fault Current Limiters (MV FCL). Initial work resulted in the aggregation of then-current secondary information on MV FCLs. Contact was established with the officials responsible for FCLs at the two known U.S.-based suppliers that have existing successful FCL installations (ABB and G&W). Both of these firms actively manufacture, market and provide support for their MV FCL products. Following an initial market assessment, Newton-Evans staff undertook telephone interviews with distribution engineering officials at 42 leading U.S. and Canadian Utilities to discuss use and plans for FCLs.
The resulting report is a 12 page assessment of the recent history and mid-term outlook for further development of this small segment of the electric power transmission and distribution equipment market. Synopsis of the two leading suppliers and a glimpse into the role superconductors may play now and in the mid-term to encourage further expansion of this market in both high voltage and medium voltage applications, and setting the stage for additional manufacturer participation.
This new report is priced at $275.00, with the market outlook through 2016 prepared by supplier shares, by world region, and by application (end-user), and is available for immediate download from our REPORTS tab.
Top Quality Smart Grid and Grid Modernization Market Research Report Offerings for New Clients . .
Enabling Your Company to become “Market Smart.” Insights from Newton-Evans Research to Help You Succeed as a Smart Grid Market Leader
Through July, 2013, new clients can purchase a package of five widely acclaimed Newton-Evans Research studies for a total investment of $9,950.00. If purchased individually, these 2011-2013 reports would cost more than $26,000.00. An onsite briefing session covering these topics and more, tailored especially for your staff, can be provided for an additional $2,750.00.
If you are a first time smart grid market participant or simply out to improve your company’s performance and position in the growing smart grid marketplace, let Newton-Evans Research studies and resources help guide you to become “market smart.” We know the smart grid market; equipment, systems and services; segment market size and outlook; key players in each segment; usage patterns; buying trends; and more!
Take a look at our 35 year record of acclaimed electric power market studies. Review our client list. Read up on our methodology…scan the trade press coverage of our work, and you will definitely want to get on board with this special offer while it is available.
This Newton-Evans grouping of smart grid reports is based on hundreds of surveys and user interviews as well as discussions with suppliers, integration specialists and services providers. In most cases, these studies have their foundation in earlier decades of research for clients throughout the world.
Here are the definitive reports we have prepared over the past 30 months that will help your company to succeed in 2013 and beyond:
- The World Market Study of SCADA, Energy Management Systems, Distribution Management Systems and Outage Management Systems in Electric Utilities: 2013-2015 (four volumes)
- Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry: 2011-2015
- Worldwide Study of the Protective Relay Marketplace In Electric Utilities: 2012-2014 (Four volumes)
- The Worldwide Smart Grid Market in 2011: A Reality Check and Five Year Outlook Through 2015 (in Three PDF volumes)
- The World Market for Substation Automation and Integration Programs in Electric Utilities: 2011-2013 (Four volumes)
For orders placed during June, you will also receive a complimentary copy of the forthcoming mid- 2013 edition of Global CAPEX and O&M Expenditure Outlook for Electric Power Transmission and Distribution Investments: 2013-2014 – Funding Outlook for Smart Grid Development (based on June 2013 survey results).
Download an order form for this special offer here:
http://www.newton-evans.com/N-E_OrderForm-June2013.doc
Full Plate of Research Projects Underway and Planned at Newton-Evans
As of early April, much of the 2013 T&D research work already completed or now underway for clients has once again centered on fundamentals required for a more resilient power grid— that is, on “infrastructure building blocks” rather than on pure automation or IT.
While many observers continue to overlook the critical role of “widgets” — basic T&D grid components – – – that have themselves benefited from technical advances over the past decade, our research programs have included a number of studies of these components. During the first quarter of 2013, we have come to understand that more reliable and greener components available in the newest generation of core grid products are indeed making headway in the North American Grid and throughout the world.
Currently, Newton-Evans staff is fully engaged in client studies researching the emerging roles being played by such basic grid components as power fuses, capacitor bank switches, and even the various improvements in transformer oils being used in the millions of power and distribution transformer installations in North America. We are about to begin a private study of high voltage circuit breaker trends.
We have not overlooked “smart grid” developments, of course, being the earliest industry marketing research firm to study T&D control systems . . . beginning in 1981. We have recently released the four volume 2013-2015 edition of the World Market Outlook for EMS, SCADA, DMS and OMS Systems. For another private client we have already completed a detailed year-by-year history and eight year outlook for distribution automation in North America.
Another first quarter client study provided a major power utility client with the ability to measure the opinions, attitudes and experiences of other electric utility operations officials regarding the pros and cons of alternative data communications infrastructure choices for operational data acquisition. These report findings enabled our client to make an educated decision about how to proceed with its own communications infrastructure upgrades.
The findings presented in the project report were based on a survey sent out to large electric utilities around the world. Utility officials involved in communications network planning or oversight from more than 15 countries responded to the survey. While not all participating utilities operated control systems that are configured with multiple control centers, survey participation and informative feedback was welcomed from everyone.
Illustrative diagrams were included throughout the survey to guide respondents into thinking about four specific network communications scenarios being considered by the client utility. After being presented with the diagrams and descriptions, survey respondents were asked a series of questions including, “What scenario do you think will offer the best opportunity to accomplish the following:”
- transition easily to an IP data infrastructure with better cost control and reduced latency
- transition easily to a better data acquisition infrastructure using synchrophasors (PMUs)
- easily update data points over the network & synchronize the updates with other systems
In early June, one of our clients will be hosting an exclusive afternoon reception and discussions of advanced cyber security and related compliance topics, with speakers from NIST and ENERNEX among others. Newton-Evans will soon be sending out invitations to selected utility officials from the mid-Atlantic area. Qualified senior utility officials, who may be interested in learning more about defense-in-depth file transfer techniques between various operational systems and multiple enterprise systems, can contact us for an invitation to attend this small group event which will be held in suburban D.C. The seating for this event is limited; there is no cost for attendees (other than transportation).
This event promises to be another great way to learn more about the implications of the new 2013 cyber security executive order for critical infrastructure, as well as receiving updates to NERC compliance topics, and how advanced cyber technology developments will transfer from one usage sector to the electric power industry to secure file transfers between operational control systems and IT systems.
During the summer months, Newton-Evans will be “going global” once again with its fifth edition of the CAPEX/OPEX outlook among the world’s electric power utility community. Concurrently, we expect to be underway with a major update to our historical compilations of distribution automation developments and trends.
Newton-Evans’ CEO, Chuck Newton, has been selected by Energy Central to serve as the Operations Track Chair for this autumn’s KNOWLEDGE 2013 Conference, scheduled for November 4-6, 2013 at the exclusive Broadmoor Hotel and Resort in Colorado. We are looking for a few additional senior level Operations/Smart Grid people to serve as program committee members. The KNOWLEDGE Conference is known for its attractiveness to C-Level executives and other senior managers who are afforded the opportunity to have open discussions and dialogue with peers on IT and CIS topics in a relaxed setting. We hope to make the Operations track a vital new component of this exclusive conference.
Finally, during the first quarter, Newton-Evans contributed articles to the following publications:
Intelligent Utility (March 13, 2013 edition) “Current, Planned Global Deployment of Analytics Capabilities”
Utility Horizons Quarterly (April, 2013 edition) “Usage Patterns and Trends in Electric Utility Automation”
Transmission & Distributions WORLD (May 2013 edition) “Special Supplement Communications: “Assessment and Outlook for Telecommunications Networks and Protocols in the World’s Electric Power Utilities”
In addition, our latest global control systems studies received coverage on a number of financial news sites around the world as well as in the following industry publications:
Transmission and Distribution World – Online – Feb 20, 2013
“Global Spending for Power Delivery Control Systems for 2012-2015 Likely to Exceed $5.5 Billion” http://tdworld.com/smart_utility/newton-evans-delivery-study-0213/#ixzz2LT9GejmD
Renew Grid – February 19, 2013
“North American Utilities Lagging On Standards And Best Practices”
http://www.renew-grid.com/e107_plugins/content/content.php?content.9586#.USUiB1f_qsk
Smart Grid News – February 15, 2013
“Study reveals U.S. utilities falling behind in adoption of essential best practices”
http://www.smartgridnews.com/artman/publish/Technologies_Standards/Study-reveals-U-S-utilities-falling-behind-in-adoption-of-essential-best-practices-5517.html/?fpt#.USUhWlf_qsk
PowerGrid International, January, 2013
“Newton-Evans: EMS, SCADA, DMS, OMS Likely to See Much Growth Through 2015″
Print Magazine article (page 20)
Global Spending for Power Delivery Control Systems for 2012-2015 Likely to Exceed $5.5 Billion . . . If Economic Outlook Strengthens, Market Could Reach $6.5 Billion
Standards Compliance for Many Systems Components Important Internationally while Surprisingly High Level of Interest in NERC CIP Compliance Reported From Outside of North America
February 12, 2013. Ellicott City, Maryland. The Newton-Evans Research Company has released its 2013 edition of a four volume study of EMS, SCADA, DMS and OMS usage patterns in the world’s electric power utilities. This release marks the tenth such research program in this series completed since 1984.
Newton-Evans staff conducted surveys and interviews with more than 150 utilities in 37 countries. These included many of the TOP 100 utilities in the world. Among the observations gleaned from interviews and surveys with these utilities, along with views from control systems integrators and power delivery consultants are these:
Rationale for Increased Spending on Control Systems: A number of factors were cited by participants as the basis to support the increased levels of systems augmentation, upgrades and replacements over the next 36 months including the need for new applications to improve operator visualization and situational awareness; adding redundancy to communications pathing; improving cyber defenses; complying with new regulatory mandates; and in some instances, a desire to combine two or more systems onto common platforms.
Differences in International and North American perspectives and approaches to Standards for control systems: The role of international standards is more important to utilities outside of North America than to domestic utilities. While IEC standards compliance dominates systems procurements and communications approaches internationally, in North America the roles of IEEE, ANSI, NEMA and de facto standards play a much more important role. Forty percent of international respondents indicated having a requirement for OPC (Open Platform Communications) compared with only 27% of North American replies. Similarly SOA (Service Oriented Architecture) was viewed as being much more important internationally than was reported by North American respondents. Two-thirds of international utilities and 19% of North American utilities reported interest in using CIM standards for model maintenance related to distribution circuit design transfers from GIS (Geographical Information Systems) to DMS.
Similar Levels of Concern with Cyber Security: Eighty percent of North American utility officials and 82% of international utilities cited a need for cyber security features to be designed as an integral part of their control systems, not provided as an “add-on.” Interestingly, many international utilities are modeling their cyber security mandates for power delivery control systems on North America’s NERC CIPs. Across the world, several utilities also called for control systems integrators to do more to make NERC (and other) compliance and regulatory reporting easier and more automated.
Third Party Control Center Services: Consulting services are being used and more likely to be relied upon to assist with expanding NERC CIP compliance issues, for the conduct of vulnerability assessments and for consulting on smart grid topics. In addition, several comments were directed toward the increased reliance on third party services to assist utilities as they cope with workforce retirements in their operational control centers.
Role of Operational Analytics: Noticeable differences in current and planned usage of operational analytics were found for asset analytics, DMS analytics (load and voltage balancing et al) and customer analytics. Each of these are now being used (or soon will be) more widely internationally than in North American utilities. OMS analytics (e.g., fault location) are of similar levels of usage and plans among both groups.
The four volume study includes separate reports on (1) North America with details by type of utility, (2) International community with detailed findings by world region; (3) Profiles of leading systems integrators and (4) World regional market outlook for each type of power delivery control systems through 2015. The complete set of reports is available for $7,500.00, and individual reports are also available for online ordering.
Further information on this new series entitled The World Market Study of SCADA, Energy Management Systems, Distribution Management Systems and Outage Management Systems in Electric Utilities: 2013-2015 is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit us at www.newton-evans.com to order this series or any of more than 100 related reports. Chuck Newton can be reached at cnewton@newton-evans.com.
Release of North American 2013-2015 EMS, SCADA, DMS and OMS Report – Now Available for Secure Online Purchase and Download!
EMS, SCADA, DMS and OMS Systems to be Significantly Upgraded or Replaced to Meet New Regulations and to Provide Improved Situational Awareness and Visualization Tools for Systems Operators
Role of Operational Analytics for Outage Management Growing Rapidly in Attempts to Improve Reliability and Minimize Outage Duration and Frequency
January 25, 2013. Ellicott City, Maryland. The Newton-Evans Research Company has released highlights of findings from its newly published study of EMS, SCADA, DMS and OMS usage patterns in North American electric power utilities, one of four component reports of the company’s 2013 global market assessment series on power delivery operational control systems.
Among the observations gleaned from interviews and surveys with more than 110 participants from a wide range of participating U.S. and Canadian electric utilities, are the following:
- Plans call for upgrades or retrofits to EMS (energy management systems) and SCADA (supervisory control and data acquisition) systems among a large percentage of these utilities. Related industry expenditures will likely increase by more than 25% over the next 24 months.
- Plans for procurements of new DMS (distribution management systems) and OMS (Outage management systems) are significant, with more than one quarter planning to purchase a new or replacement DMS and nearly one-in-five planning OMS procurements.
- Eighty percent of utility officials cited a need for cyber security features to be designed as an integral part of their control systems, not provided as an “add-on.” Most officials also called for control systems integrators to do more to make NERC compliance and regulatory reporting easier and more automated.
- Third party services are being used and relied upon to assist with NERC CIP compliance issues, for the conduct of vulnerability assessments and for consulting on smart grid topics.
- DNP 3 continues to be the most prevalent operational data communications protocol throughout North American electric power utilities. Plans call for continuing the use of DNP 3 for the foreseeable future, among the majority of these utilities. Increased use of IEC 61850 for intra-substation communications has been reported in newly constructed transmission substations.
The North American report is one of four volumes of study completed for the company’s fourteenth bi-annual series of EMS, SCADA and DMS studies published by Newton-Evans Research since 1984.
Further information on this new series entitled The World Market Study of SCADA, Energy Management Systems and Distribution Management Systems in Electric Utilities: 2013-2015 is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit us at www.newton-evans.com or to order any of more than 100 related reports. For readers interested in purchasing this new series please call or email the company for special introductory pricing. Chuck Newton can be reached at cnewton@newton-evans.com.
Preliminary Findings Point to Solid Growth for EMS, SCADA, DMS and OMS during 2013-2015 among North American Electric Power Utilities
Real-time Inter-systems Communications Capabilities Lag, but DNP 3 Continues as the Preferred Protocol for Operational Data Communications
December 1, 2012. Ellicott City, Maryland. The Newton-Evans Research Company has released interim findings from its current study of EMS, SCADA, DMS and OMS usage patterns in North American electric power utilities, one of four components of the company’s global market assessment series on operational control systems.
Among the initial observations gleaned from interviews and surveys with 50 initial participants from a wide range of participating U.S. and Canadian electric utilities, are the following:
- Energy Management Systems (EMS), supervisory control systems (SCADA), distribution management systems (DMS) and outage management systems (OMS) are likely to show very good growth over the 2013-2015 years, in light of the positive responses from this initial group of utility responses.
- Plans call for upgrades or retrofits to SCADA systems among a large percentage of these utilities
- Plans for procurements of new DMS and (OMS) are significant, with more than one quarter planning to purchase a new or replacement DMS and nearly one-in-five planning OMS procurements.
- There is interest shown among one-third of these early respondents to combining DMS and OMS on a common platform, but cyber security concerns have been voiced by several operations officials looking into such system combinations.
- Third party services are being used and relied upon to assist with NERC CIP compliance issues and for the conduct of vulnerability assessments.
- DNP 3 continues to be the most prevalent operational data communications protocol throughout North American electric power utilities. Plans call for continuing the use of DNP 3 for the foreseeable future, among the majority of these utilities.
- More than a score of additional topics are surveyed in this new study including the impact of NERC CIP compliance on budgets and workloads; distribution network model maintenance; hardware maintenance responsibilities and preferences for new applications procurement methods.
The North American report is one of four volumes being produced for the company’s fourteenth bi- annual series of EMS, SCADA and DMS studies published by Newton-Evans Research since 1984. Work on the other three volumes is underway; the entire series will be published in January 2013.
Further information on this new series entitled The World Market Study of SCADA, Energy Management Systems and Distribution Management Systems in Electric Utilities: 2013-2015 is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit us at www.newton-evans.comor to order any of more than 100 related reports. For readers interested in purchasing this new series please call or email the company for special introductory pricing. Chuck Newton can be reached at cnewton@newton-evans.com.
Newton-Evans Finds Major Electric Power Operations and Enterprise Software and Systems Sales in U.S. Now Exceeds $1.1 Billion
Three year growth from 2011 to 2014 projected at 26% for the entire group of ten key operational topics. Cyber Security Software Growth to outpace Other Topics in this series
November 12, 2012. Ellicott City, Maryland. The Newton-Evans Research Company has announced its publication of a set of 10 U.S. market summaries covering operational systems and software used by American electric power utilities. The newest series of market overview reports (executive two-page market summaries) includes supplier listings, representative products, and estimated market size for each topic, vendor market share estimates, and market outlook through 2014. For several topics, typical software and/or system cost ranges are also provided. Electric utilities accounted for more than 95% of all purchases of control-related systems and utility CIS software. Total 2011spending for the systems and packaged software included in this series exceeded $1.1 billion, with an even larger amount spent internally or with developers for custom development and maintenance of these systems and applications software packages.
The Control Systems series ($975.00) includes U.S. market size, market share estimates and market outlook for these ten topics: CS01 – EMS Systems Integration, CS02 – Distribution SCADA, CS03 – Geographic Information Systems, CS04 – Customer Information Systems, CS05 – Outage Management Systems, CS06 – Meter Data Management Systems. CS07 – Mobile Workforce Management Systems, CS08 – Advanced Distribution Automation, CS09 – Electric Power Market Management Systems and CS10 – Cyber Security Software for Control Systems
Other T&D topical series published this year by Newton-Evans Research are also available including: substation automation (13 market segment snapshots), power transformers (11 market segment snapshots), distribution automation (12 market segment snapshots), protective relays (8 market segment snapshots), high voltage equipment (15 market segment snapshots) and medium voltage equipment (20 market segment snapshots). Forty companies represent the majority of sales of products, systems and software covered in the series. This group of market overviews is the final series to be published in 2012. In total, 84 T&D-related equipment, software and services market segment overviews are available.
Total shipment values for the 84 components of the Newton-Evans U.S. T&D market overview series exceeded $15 Billion in 2011, and are projected to reach $18 Billion by 2014. The report summaries can be purchased online, either individually or by topical series. More than 200 suppliers are each represented in at least one report.
Further information on this new series of U.S. electric power transmission and distribution market snapshots is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit the specific Newton-Evans website page at http://www.newton-evans.com/wp-content/uploads/MktSummarySrs-2012-brochure.pdf for a brochure or to order any of the related report series or individual report summaries online. For those interested in subscriptions to multiple summary report series, please call or email us for special introductory pricing offers. Khristina Newton can be reached at knewton@newton-evans.com .
summary reviews and highlights from completed studies
