Editor, Author at Newton-Evans Research Company, Inc.

Posted on May 19, 2014 by Editor

More Estimates on The U.S. Market for Distrubution Automation

From 2008 onward, Newton-Evans Research Company has completed one or two client-based, proprietary studies each year to provide mid-term and longer-term outlooks for one or more components of the burgeoning Distribution Automation market comprised of U.S.-based electric power utilities. The primary focus of these studies has centered on various DA field equipment types and associated controllers as well as DA software and platforms, located in the field, at the substation level or at the MV operations control center.

Research Methodology
These studies have included several weeks of primary research based on direct communications with major and mid-size utilities, requesting their insights regarding DA plans through 2020. These studies also included secondary research methods to learn about documented plans for DA among other North American utilities and to better understand the likely impact of economic growth projections and electric utility revenue outlook and CAPEX spending. Overall economic information used in the preparation of our range estimates was also based on NGO and a variety of government outlook documents.

The following observations are based on survey completions provided by scores of electric power utility officials during 2012-2014.

DA expenditure allocation among three purchasing categories
The overall indications from the surveys completed prior to 2014 pointed to somewhat more than one-half of the 2013-2015 DA budgets going to the procurement of field equipment, with an equal percentage of the remaining budget allocated for platforms and software, and for DA controller devices.

Over the longer term horizon (2016-2020) the DA expenditure outlook indicated a slight shift in spending patterns, suggesting increases in the percentage of program funding allocated to DA field equipment, and slightly lower percentages going toward platforms, software, and DA controller devices.

The following series of charts represent the Newton-Evans consensus view of low, mid-range and high estimates of likely DA spending for five components:

DA smart field-based distribution equipment
DA controllers
substation-based DA platforms and software
control center-based DA platforms and software
Telecoms for DA

Specific DA communications network developments are excluded from this outlook. The mid-range outlook is based in large part on the utility survey responses and a cautiously optimistic assessment of the near-term and mid-term.

The low range outlook takes into account the possible continuation of unclear energy policies at the federal and state levels, federal and local government budget woes, minimal growth in electric utility industry revenues and a continuation of relatively flat electricity consumption patterns.

The high range outlook factors in a stronger economic outlook for the periods from late 2013 thorough 2016, based on the economic analysis information reported by several external organizations.

References were made to recent publications provided by several organizations including The Conference Board, Moody’s Analytics, The World Bank, The Federal Reserve and the Bureau of Economic Analysis.

The historic DA spending baseline years in this study have been derived from the larger and more comprehensive mid-2010 study of North American utilities conducted by Newton-Evans Research Company.

The forthcoming update to the report series, “Overview of the 2014-2016 U.S. Transmission and Distribution Equipment Market: Distribution Automation Series” goes into more detail with respect to the market for specific DA equipment and spending categories such as Automatic Circuit Recloser Controls; DA/DMS System Components; Voltage Regulators; Capacitor Bank Controllers; Fault Indicators; Pole Top (and Pad Mount) RTUs; Line Mounted Monitoring Devices; Communications Components for DA; and Engineering Services for DA.

See our reports page for topic listings and pricing details, and be sure to send us an email at info@newton-evans.com or call 1 800 222 2856 to place your order.

Posted on May 7, 2014May 7, 2014 by Editor

Transmission and Distribution Equipment and Systems: Facts and Figures

Newton-Evans Research Company has completed hundreds of studies encompassing most aspects of the U.S. transmission and distribution equipment and related information management, monitoring and control systems markets in the nearly 36 years of its existence.

During the second quarter of 2014, the company will again be publishing more than 85 T&D segment management summaries which provide top-level overviews of most major components of T&D spending. These management summaries provide information on infrastructure topics as well as automation and control systems and engineering services. Definitions, Market size, market shares, recent year shipment estimates and the 2014-2016 outlook is provided in each summary. While some of the information provided in these reports is based on secondary research, much has been developed from meetings and discussions held directly with equipment manufacturers and systems integrators. In some instances, the supporting data is based on larger studies completed by Newton-Evans.

When coupled with the very large “third party services” market and operational communications network investments, T&D-related spending in the United States has grown to more than $25 Billion as of 2013. Importantly, much of these expenditures would occur naturally, without being classified as “smart grid” related. With a mature electrical infrastructure in place for decades, much of the procurement of T&D goods and services today centers on refurbishment and upgrades of existing facilities and field assets, and the smartening up of an older generation of “passive” equipment.

Spending for high voltage equipment itself accounts for more than $5 billion (excluding power transformers). HV substation upgrades, together with circuit breakers and switchgear, make up the bulk of HV-related spending. Gas insulated HV switchgear will likely grow in importance in the U.S. just as it has in countries around the world. Transmission monitoring and control is now being upgraded with the development and deployment of two relatively new technologies, synchrophasors and dynamic line rating systems. HV substation and transmission line/tower construction spending tends to vary each year and ranges from about $2.5 billion to more than $5 billion in recent years.

Shipments of medium voltage (MV) equipment are now approaching $4.5 billion in value. Major MV equipment categories include air-insulated metal-clad switchgear, reclosers and sectionalizers, load interrupters and surge arrestors. When coupled with spending for distribution automation, and a host of related services and control systems, MV-related spending exceeds $10 billion.

Looking at transformers, which can range from extra-large power transformers to medium power units, to a variety of pad-mount and pole-top distribution units, the value of product shipments for this entire category approaches $5 billion to about $6 billion in a “typical” year.

The emerging field of advanced distribution automation includes the monitoring and control systems supporting field instrumentation devices such as pole-top RTUs, faulted circuit indicators and controllers for capacitor banks and reclosers and voltage regulators. Supporting platforms required for processing data acquired from these devices include newer applications hosted locally, at substations or at the control center-based distribution management systems, which often includes modern “distribution SCADA” systems for mid-size utilities.

Operational control systems have been a mainstay of the electric power delivery industry since the early 1970s. Today, modern energy management systems are in operation in virtually every North American transmission utility. Distribution-focused SCADA systems are now installed and operating at nearly 1,900 U.S. utilities. Separate DMS hosting platforms supporting advanced DA activities are becoming prevalent in many of the largest utilities. When coupled with spending for geographic information systems, outage management systems, meter data management systems, mobile workforce management systems, market management systems, cyber-security applications software and supporting services, the annual external spending for supporting operational IT systems of the U.S. electric utility community is now approaching $2.5 billion.

Combining the very large market for systems protection in the form of protective relays, the market for smart/intelligent electronic devices (various types of substation meters, power quality monitors and event recorders) and the market for integration and processing of all of this data, the recent year aggregated market for HV and MV substation automation and modernization has hovered between $1.5 billion and $2 billion.

Realizing that the investor-owned community of electric utilities accounts for around 70% of all customers, industry revenues and spending on T&D, keep in mind that the 1,800 public power utilities and the more than 900 electrical cooperatives represent an attractive, growing (and often leading edge) user base for newer technologies, especially for MV equipment, systems and services.

In addition to the electric utility community, the 710,000 industrial companies and nearly 18 million commercial firms account for about 15% of all T&D equipment and services purchased in this huge $22-$25 billion marketplace.

Unlike many countries around the world, and unlike many other components of the American economy, U.S.-based factories produce more than 90% of all T&D equipment purchased by U.S. utilities. A few years ago this was not the case for large power transformers, but with the opening of several manufacturing facilities in the southern U.S., this has changed for the better, and has resulted in shortened lead times for power transformers. North American-based business operations also develop and provide the vast majority of services, systems and applications software needed for utility operations and implement virtually all control and monitoring systems used here.

In multiple recent studies conducted by Newton-Evans, the nation’s electrical equipment manufacturers have reported that they have the capabilities to produce whatever may be required to advance the development of a more resilient, more reliable power grid. Smaller firms continue to lead in research and development of advanced energy technologies, and the follow-on benefits of the 2009-2012 ARRA programs under the guidance of the U.S. Department of Energy continue to positively impact the development of a 21st century electric grid.

It will take sustained investment over the next 20-30 years, along with ongoing research and development, to realize a fully reliant, resilient and sustainable power grid here and elsewhere. The development of demand response techniques, inclusion of distributed energy resources, deployment of micro—grids, large scale energy storage, cost-effective underground distribution networks where sensible, and the integration of renewables are each poised to play an important role in the future development of a modern American grid. We don’t need to tear down and start over, but we do need to modernize and upgrade the grid components in an iterative and intelligent manner. We need to improve and safeguard what remains as one of the world’s great technical achievements of the past century, the North American electric power grid.

Posted on April 24, 2014April 24, 2014 by Editor

Electric Utility SCADA/DMS and OMS Convergence Trends

Here are some more excerpts from our latest study of the World Market Study of SCADA, Energy Management Systems, Distribution Management Systems and Outage Management Systems in Electric Utilities: 2013-2015. The information below was collected from 101 electric utilities in the U.S. and Canada between the 4th quarter of 2012 and 1st quarter 2013. The survey sample consisted of Investor Owned utilities (21%), Public Power (35%), Cooperatives (44%), and Canadian Utilities (13%).

Has your utility converged SCADA/DMS and OMS functions?
A total of 35% of utility respondents either had already converged SCADA/DMS and OMS or planned to do so by the end of 2015. Only 6% of Public Power utilities surveyed had already converged these functions, but another 21% had plans in place to do this by 2015.

Has your utility converged SCADA/DMS and OMS functions? (as of Jan. 2013)

What functions have been converged/or plan to be converged?
Eighteen respondents said they had either converged SCADA and OMS, or planned to. Some mentioned that their SCADA reported all operations and statuses of monitored devices to their OMS, and some indicated that SCADA and OMS were less tightly integrated (for example, in some cases SCADA might only report switch/breaker status to OMS.) Here are a few of the more specific comments that were mentioned on the survey:

AMI system will provide customer meters out to the OMS system on a limited basis.
All distribution SCADA functions have been integrated with OMS/DMS through interface applications.
SCADA reports all operations/statuses of monitored devices to OMS
One way interface from SCADA to OMS (breaker & switch status)
Integrated platforms – smart meter “last gasp” info feeding GIS & SCADA systems which then feeds Outage Notification system
Topology (coloring feeder); Load Flow; Real Time Metering; Volt-VAR Control; Outage Report
SCADA/DMS. SCADA provides the load data to operate the DMS.
Multispeak connections between SCADA and OMS
Predicted and actual outages
Telvent’s ADMS product (OMS&DMS) to be installed on top of upgraded Telvent OASyS DNA SCADA system.
Estimated restoration times, extent of outage, number of customers

Does your utility currently have real-time linkages between SCADA and GIS or OMS?
Sixty percent of utilities surveyed did not have any real-time linkages in place as of January, 2013. About one-third had real-time linkages in place between SCADA and OMS, while just 15% had real-time linkages between SCADA and GIS.

Larger Investor Owned utilities were more likely to have real-time communications linkages in these situations. Just over half of Investor Owned utilities (52%) had real-time linkages between SCADA and OMS, and 24% had real-time linkages between SCADA and GIS. Fifty-four percent of large utilities (i.e. serving more than 1 million customers) had real-time linkages between SCADA and OMS.

Does your utility currently have real-time linkages between SCADA and GIS or OMS? (as of Jan. 2013)

More details about the topics covered in this and other studies are available on our reports page.

Posted on April 14, 2014April 14, 2014 by Editor

Interest in Combining Control Systems on a Common Platform Among North American Electric Utilities

The following is excerpted from the Newton-Evans Research study, “World Market Study of SCADA, Energy Management Systems, Distribution Management Systems and Outage Management Systems in Electric Utilities: 2013-2015.” Read more about it on our reports page here.

Do you have any interest in combining EMS and DMS on a common platform?
In 2013, utility interest in combining these two systems was observed to be about the same as it was in 2010. A total of 26% of respondents had interest or had already combined their EMS and DMS systems. In 2010, 27% of utilities surveyed expressed an interest in doing this. Cooperatives showed less interest in combining, while Investor Owned utilities had more interest.

(Summary from the 2012 survey)

In the 2010 survey, there was some interest in combining EMS and DMS on a single platform; 27% of respondents answered “yes” they had an interest in combining the two. There was more interest among Canadian respondents (36%), IOUs and public power utilities (each at 32%), compared with only 13% of cooperatives (this sub-group of distribution cooperatives is less likely to use EMS technologies). Similarly, larger utilities were somewhat more interested in this combination of EMS and DMS than were smaller utilities.

Do you have any interest in combining DMS and OMS on a common platform?
Similar to what had been reported in the 2010 study, the 2013 study indicated that 41% of utilities either have interest in combining DMS and OMS (36%), or have already combined them (5%).

(Summary from the 2012 survey)

Overall, 40% of the 92 utilities responding to this part of question 3 expressed interest in a combined DMS/OMS platform. The highest level of interest was noted among Canadian respondents (64%); the lowest amount of interest was among U.S. cooperatives (17%). Fifty percent of utilities serving more than one million customers were interested in combining DMS and OMS capabilities on a single platform. Questions 3a and 3b are new questions added to the 2010 survey.

Posted on April 4, 2014April 8, 2014 by Editor

U.S. Market for Feeder Protection Relays

According to GE Digital Energy, a feeder protection relay can provide primary circuit protection on distribution networks and backup/auxiliary protection for transformers, generators and motors. With a total estimated market of about $60 million in direct sales to the nation’s electric utilities, this total is expected to grow to $72 million by the end of 2014. Modern (digital/numeric) feeder relays are a key segment of the overall substation modernization and distribution automation equipment market. Feeder relays are just one of 84 types of electric T&D equipment and services discussed in the Newton-Evans report series, Overview of the U.S. Transmission and Distribution Equipment Market, which is presently being updated to reflect year-end 2013 U.S. market values and provide market forecasts and outlook through year-end 2016. This summary of feeder relay activity is typical of the information contained in each of the 84 reports. Market segment shares for suppliers are also provided in each report. Here are a few of Newton-Evans’ observations on this important market segment taken from the 2011 market overview series as well as the Worldwide Study of the Protective Relay Marketplace In Electric Utilities: 2012-2014.

Average Unit Price Range:
Distribution feeder relays have been recently priced between $900 and $1,800 depending on whether or not other features like over-current protection are included.

Major Manufacturers:
ABB: REF615R Feeder Protection and Control, REF series
Basler: BE1-11f system
Beckwith: M7651
Cooper (now owned by Eaton): iDP210
Eaton: CH-Series, E-Series
GE: M Family, SR 3 350, F650
SEL: 751, 751a, 351S
ZIV: IRV, DRV
ERLPhase: F-Pro

Findings from the Worldwide Study of the Protective Relay Marketplace In Electric Utilities: 2012-2014 Volume 1 – North American Market:
The 2012 survey findings suggested a likely increase in purchase plans for transmission line relays and distribution feeder relays. In 2012, as in previous studies, distribution feeder relays made up the largest portion of planned relay purchases over the 2012-2014 time frame. A significant share of all utility relay purchases (units) planned for this period were distribution feeder relays.

The earlier 2009 study findings had indicated that distribution feeder relays were the “best-selling” and most widely used type of protective relay within the utility segment, even though redundancy in the distribution grid was not nearly as common as found in transmission applications. About 40% of the total number of units planned for purchase during the forecast period was to be distribution feeder relays.

Digital vs. Electromechanical
In 2012 the survey respondents indicated that 60% of distribution feeder relays in their installed base were digital/microprocessor relays. This percentage continues to grow as more digital relays are added to the current system every year. The earlier 2009 study observed that 53% of the installed base was digital, with 97% of planned unit purchases likely to be digital as well. As recently as 1999, the split was 50-50 (electro-mechanical versus digital/numeric).

To stay up to date on our progress with the Overview of the 2014-2016 U.S. Transmission and Distribution Equipment Market, sign up for our newsletter by emailing with the subject line “subscribe.” Visit our reports page for more information and to download a report brochure.

Posted on March 21, 2014March 21, 2014 by Editor

U.S. Electric Transmission & Distribution Equipment Market Overview

In 2014 Newton-Evans plans to update its U.S. T&D Equipment Market Overview report series to reflect market observations from 2013 and estimates for 2014-2016. This series of 2-3 page “top line” summaries will present the 2013 market shares for major participants in dollars and % of U.S. total. Each report will also present U.S. market segmentation in $MUSD, and a forecast out to 2016. Vendor and IEEE equipment definitions are provided.

Make sure to email info@newton-evans.com and sign up for our newsletter and report availability notifications for this series.

Here is a complete list of reports that will be available for $150 each:

Continue reading U.S. Electric Transmission & Distribution Equipment Market Overview

Posted on March 5, 2014March 5, 2014 by Editor

Smart Meter Deployments By Usage Segment

Even in mid-2013, American utilities continued to rely on more than 80+ million “dumb” electricity metering devices for data acquisition on electricity consumption. Most of the installed analog metering devices were manufactured in the United States. Smart metering technology is also largely developed and manufactured in the U.S.; at the very least, it is tested in the U.S., and its final assembly is completed here. There are several more suppliers of automated meters than there were of electromechanical meters. Here is Newton-Evans outlook for smart meter deployments in each of three key usage segments.

For more information about U.S. electric utility equipment manufacturing capabilities see our recent report, “American Manufacturing and Systems Integration Capabilities for Power Grid Modernization” on our reports page.

Posted on February 26, 2014February 26, 2014 by Editor

Encryption of Substation Communication Protocols On The Rise in North American Electric Utilities

The recent Newton-Evans survey of the Worldwide Market for Substation Automation and Integration programs in Electric Utilities: 2014-2016 reveals the increasing trend in North America of encrypting substation communication protocols. Here are a few facts about this topic:

1) Out of 59 North American electric utilities responding to the survey question, “What protocols do you use within the substation, between substations, and from the substation to the external host or network?” forty-five said they currently use DNP3 (serial) and 28 said they use DNP3 LAN (TCP or UDP) within the substation. For communication from substation to substation, 16 said they use SEL protocols and 21 said they use a version of DNP3. For communication from substations to the external host or network most respondents use a version of DNP3.

2) When asked the follow up question, “Are these protocols encrypted?” sixty-nine percent (41/59) said “No.” This seems like a lot, but the Newton-Evans survey has found that every few years more and more North American utilities are using encryption.

Are substation communication protocols encrypted?

3) Utilities were then asked, “If your protocols are encrypted, where do you employ encryption?” a) Inside the substation b) substation to substation c) substation to master (choose all that apply). Of the 15 North American utilities responding to this question, 14 indicated they encrypt protocols from substation to master, while only 3 use encryption within the substation and 2 from substation to substation.

Purchase the full report from our reports page for more detailed information on substation protocol use, encryption, and substation communications.

Posted on February 17, 2014August 27, 2014 by Editor

Excerpts from Volume 2 of The World Market for Substation Automation and Integration Programs in Electric Utilities: 2014-2016

The Newton-Evans Research Company has released findings from the International volume (Volume 2) of its newly published four volume research series entitled: The World Market for Substation Automation and Integration Programs in Electric Utilities: 2014-2016. In addition to looking at plans for over 20 types of equipment commonly used in substation-wide automation and integration programs, this 200+page report includes a comprehensive look at the market trends for:

choice of communication protocols within and between substations, and from substation to control center
wireless devices inside the substation
number of Ethernet ports in a substation
number of simultaneous wireless connections allowed
protocol encryption and redundancy
communications architectures and links
Time Synchronization methods
protective relays
outsourcing of substation-related services

Key findings from 5 other recently Newton-Evans studies on substation-related topics accompanies the information gathered in late 2013 from thirty-two global electric power utilities that participated in the latest five-page survey. A total of 96 unique utilities located in 57 countries around the world participated in one or more sections of the substation modernization study. On average, these international utility officials participated in two or three of the six topical surveys that form this report.

Some observations:
Potential obstacles to implementing substation automation and integration for both new and retrofit substations through year-end 2016
Similar to 2011, very few utilities ranked any of the listed “potential obstacles” as a 5. Of all the listed challenged, the two that least stand in the way are “Lack of appropriate communications technology inside the fence” and “Lack of appropriate communications technology substation to master.” Over 60% of respondents ranked these a 1 (“doesn’t stand in our way.”)

For new substations, “security concerns” was rated a 4 by 4 out of 31 respondents, as were “Not enough skilled internal staff” and “Substation equipment vendor community will not have required “open” products and equipment by year end 2016.”

Choice of protocol within the substation, between substations, and from the substation to the external host or network.
Within the substation, international utility respondents cited use of IEC 61850 as well as the variants for IEC 60870-5. Followed by Modbus (serial, LAN and Plus) versions. For the minority of utilities performing any peer-to-peer substations communications, IEC 60870-5 -101 and -104, led in mentions. These were closely followed by SEL mirrored bits, and by DNP 3, Growth in use of IEC 61850 for peer-to-peer communications is planned by this group. IEC 60870 variants were also the most widely used protocols for substation-to-control center communications internationally. Some DNP, common legacy protocols were also being used for substation-to-control center communications.

Additional information on the International 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 Two is available to new subscribers until March 8, 2014.

Posted on January 30, 2014January 30, 2014 by Editor

Excerpts from Volume 1 of The World Market for Substation Automation and Integration Programs in Electric Utilities: 2014-2016

The summaries in the Report Findings section of this report provide top-level views and synopsis of all 77 North American utility respondents combined. In the Data Tables section of the report, survey results are cross-tabulated by size and type of responding utility.

The Newton-Evans 2014 sample for this study represents a total of at least 32,594,000 end-use customers, 2,019 transmission substations and 7,649 distribution substations in the United States and Canada. The sample distribution of North American utilities in this study is similar to previous year studies. About one-fifth of the responding utilities are U.S. Investor-owned, 36% are public power utilities, 32% are cooperatives and 12% of the respondents in the sample are Canadian provincials and municipals.

1. Please rank the significance from 1 to 5 for all of the following listed “potential obstacles” to implementing substation automation and integration for both new and retrofit substations through year-end 2016. Use: “1 = doesn’t stand in our way” to “5 = formidable obstacle.”
Just as in 2011, utilities seem to be least concerned with “lack of appropriate communications technology inside the fence.” For new substations, 69% of respondents said this “doesn’t stand in our way,” and for retrofitted substations, 48% said the same. “Lack of funding” for retrofitted substations seemed to be a potential obstacle, with 51% rating it a 3 or higher. This was also the chief obstacle in 2011, although “security concerns” was rated a 4 or higher by 33% of the same group. The current survey shows only 20%-24% of utilities in the sample rating “security concerns” a 4 or higher.

More information on how to order volume 1 or other volumes of this report series is available on our reports page.

Posted on December 19, 2013January 3, 2014 by Editor

Market Trends Digest

A special December 2013 edition of the Newton-Evans Research Company’s Market Trends Digest is now available on our website. This edition looks at some of the studies Newton-Evans has put together in 2013. Also, see some preliminary results from our study of the World Market for Substation Automation & Integration 2014-2016, and read two articles by our CEO Chuck Newton:

1. ASAT and Alstom Grid: One Year Post-Merger
2. Cyber-security: Still Time to Heed the Warning Signals

Posted on November 12, 2013 by Editor

Newton-Evans Study Shows Cumulative Shipments Of HV/MV Instrument Transformers During 2013-2016 Will Approach $1.5 Billion

According to a recent study published by Newton-Evans Research, the “Mid-2013 Assessment and Outlook for the North American Market for HV and MV Instrument Transformers,” the manufacturing of HV IT equipment has a high “concentration ratio” of suppliers. MV IT equipment manufacturing is less concentrated, and the market is supplied by several participants.

Of the key North American IT equipment manufacturers, only ABB participates to a significant extent in both the HV and MV segments. ABB is the clear market segment leader in MV IT shipment values, and is growing to become a significant player in the HV IT segment in North America. One competitor did state that in their opinion, most of ABB’s HV IT shipments to U.S. and Canadian customers are still in sub-transmission and lower HV ranges. ITEC believes its own business will grow nicely with planned new HV offerings in the 230kV range.

Overall, the IT sub-industry group of firms is positive regarding the outlook for IT equipment sales as the deployment of substation automation devices, including more relays and additional substation meters, continues to increase. Utility personnel and T&D engineering consultants we talked with also believe that the IT market is growing nicely, thanks to increases in transmission expenditures and the expansion of renewable energy facilities.

The full 14 page report is available for $575 on our reports page (scroll down to “Mid-2013 Assessment and Outlook for the North American Market for HV and MV Instrument Transformers”)

Posted on October 30, 2013 by Editor

Substation Automation, A Look Back: External Assistance Required by Utilities for Substation Automation-related Activities

One subject Newton-Evans tries to measure in many surveys is the need for third party services among electric utilities that – for many possible reasons – might find themselves understaffed or lacking the specific technical expertise for a new type of equipment.

When we asked the question in 2010 to electric utility substation planners and engineers, “Will any external assistance be needed for substation automation and integration-related activities?” here is how our sample responded:

North America:
The Newton-Evans 2010 North American sample included 58 utilities in the U.S. and Canada representing a total of 27,459,646 end-use customers, 1,633 transmission substations and 5,448 distribution substations.

Engineering drawing support was indicated as a near-term requirement by 38% of the respondents. Training services followed with about one third citing a need for educational support.

Growth areas for services were expected for security-related services (vulnerability assessments, remediation services), training services and installation support.

External Assistance Needed For Substation Automation And Integration-Related Activities: North America

International:
The Newton-Evans 2010 International sample included 43 utilities in 32 countries.

Personnel training was the substation-related activity that most required outsourcing to a third party. Sixty-two percent of international respondents required assistance with training in 2010, and 29% were estimated to require it by 2013.

Commissioning and testing, Installation, and security also currently require third party assistance by more than 40% of respondents, similar to the 2005 survey results.

External Assistance Needed For Substation Automation And Integration-Related Activities: International

In the 2005 study, training was the most important “external” service required by the world’s utilities for substation automation activities, mentioned by 54% of the respondents. This was followed by installation services and commissioning and testing services (both at 42%).

For more information about the world market for Substation Automation and Integration activity, write to us at info@newton-evans.com or give us a call: 1 410 465 7316. Also see our sample material and brochures for the upcoming 2014-2016 substation automation world market study on our Reports page.

Posted on October 24, 2013 by Editor

Newton-Evans Fourth Quarter 2013 Research Efforts and Topics

In-house Studies
Substation Automation & Integration: 2014-2016
This survey-based report series is currently in the planning stages. Newton-Evans is currently requesting suggested topics for inclusion in the survey questionnaire from early subscribers to this series.

RESEARCH IS CURRENTLY PLANNED TO BEGIN SHORTLY. THIS IS THE FINAL OPPORTUNITY FOR SUBMITTING CLIENT INPUT TO THE SURVEY BEFORE IT GOES OUT. VISIT OUR REPORTS PAGE NOW AND ORDER WITH A CREDIT CARD TO SAVE $1,500 OFF THIS 4-VOLUME REPORT SERIES DUE OUT IN JANUARY 2014!

Our Reports

For examples of previous Substation Automation studies, see our reports page or go to the following URL for samples from the past study:
www.newton-evans.com/SSA2011_Samples.zip

Recent Reports
American Manufacturing and Systems Integration Capabilities for Power Grid Modernization – Important Resource for staff and management at manufacturing companies and systems integration firms. Multiple facets of “smart grid” are discussed, including substation modernization.

Assessment and Overview of the World Market for Time Synchronization in Electric Power Substations: A Utility and Industry Survey-Based Report on Precision Timing Requirements – “Must Have” Information on Timing Requirements for Substation Modernization Programs involving utility clients at the substation level.

Global CAPEX and O&M Expenditure Outlook for Electric Power T&D Investments: 2013-2014, Funding Outlook for Smart Grid Development Based on Summer 2013 Survey Results – Great resource for global and regional outlook on grid modernization- focused on control systems, substation modernization and other key components of “smart grid” interest to the supply and demand side of electric power delivery industry.

Posted on October 18, 2013 by Editor

Overview of the U.S. Market for Fuses and Fusing Products Among Mid-sized Electric Utilities

This past summer Newton-Evans Research conducted a market survey of mid-sized electric utilities in the U.S. on the topic of fuses and fusing products. A total of 38 replies were received from utility operations officials. This respondent group included: 4 Investor Owned utilities, 21 Public Power utilities, and 13 Cooperatives. These 38 utilities serve a combined total of 8.2 million end user customers, or about 6% of the 144.5 million U.S. electricity end users.

Among several of the survey questions, utility engineers were asked to select the five voltage, current and speed power fuse combinations that were most used. Thirty-two respondents answered this question. Some respondents selected less than five combinations, and some selected more than five combinations. Twenty-seven respondents use 100 amp power fuses at either 7.2kV, 14.4kV, 25kV or 34.5kV. The table below provides a complete count of each combination selected on the survey.

Voltage, current and speed power fuse combinations used most: number of mentions

*Note: respondents were allowed to pick multiple options.

Utility officials were also asked about their typical annual budgets for fusing products, as well as which manufacturers are used as a percent of their overall fuse purchases.

This new 37 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. The fuse products report is priced at $675.00.

See our reports page to place an order.

Posted on October 11, 2013November 12, 2013 by Editor

Upcoming World Market Study of Substation Automation

Newton-Evans Research Company is currently in the survey design phase as we update our biennial world market study of substation automation and modernization. As usual, the results of this survey will be published in a 4-volume report series titled, “The Worldwide Market for Substation Automation and Integration Programs in Electric Utilities: 2014-2016” which will be available near January 15 of next year.

The report series will forecast spending on many aspects of substation automation and construction, and it will also track technology trends in substation communications, security, computing platforms, protocols, router requirements, and other topics. The report will also discuss challenges utilities face with regard to updating and modernizing substations, their approaches to equipment purchasing and installation, need/lack of need for third party services, and more.

With a typical world market potential in the tens of billions of dollars, substation automation is a key piece of the Smart Grid modernization picture. Insights from this study will help both utilities and electric power equipment manufacturers alike plan for the future.

See our brochure for a complete list of topics that have been covered in previous studies of the Substation Automation market.

Posted on September 25, 2013September 25, 2013 by Editor

Power Fuse Applications in the U.S. Electric Utility Industry

Earlier this year, Newton-Evans received 38 responses to a four page survey on the topic of power fuses, current limiting fuses and fuse links. Topics on the survey included number of power fuses, current limiting fuses and fuse links purchase annually; what brands are used; which current levels, voltage levels and speed ratings (K, E and DR) are used the most; what % of fuses are re-fillable vs. one-time use; and what % are used for indoor vs. outdoor applications.

What percent of power fuses being purchased are re-fillable power fuses (i.e. SM4, SM5) versus one time use (replaceable) power fuses (i.e. SMD20/SMU20, SMD40/SMU40)?

Newton-Evans Research found that most utilities either buy nearly all re-fillable power fuses or nearly all one time use power fuses. Among the sample, an average of 40% of power fuses are re-fillable, and an average of 60% are for one-time use. A frequency distribution of individual responses shows that the 2 largest portions are either 0% or 90-100% for either type.

What % of Power Fuses Are Refillable Vs. One-time Use?

What percent of power fuses are used for indoor applications (i.e. SM4Z, SM20) versus outdoor applications (i.e. SMD20, SMD40)

Overall findings from the surveyed utilities indicated that about 86% of power fuses are purchased for outdoor applications, and the remaining 14% for indoor applications. However, note that five survey respondents indicated that 70% or more of their power fuses were in fact for indoor applications.

What % of Power Fuses Are For Indoor Use Vs. Outdoor Use?

To download a sample .pdf of this report or to order online, see our reports page.

Posted on September 3, 2013September 3, 2013 by Editor

Use and Plans for Vendor Security Certification Programs: 2011-2013

The final question in the 2011 survey requested information on vendor security certification requirements that utilities may have adopted since the previous study in 2008. In North America, only 11% of utilities in the sample had implemented such a program, but another 19% planned to require vendor security certification by year end 2013. Two thirds of the utilities have no plans for such vendor security certification.

North America Sample, 2011:

Of the International utilities that answered this question in 2011, three out of twenty-one (14%) had implemented such a program, while another 33% plan to require vendor security certification by year end 2013. Almost half had no plans for such vendor security certification. Of the three out of twenty-one utilities with such a plan, all of them said it involved commissioning and maintenance processes; two said it involved product and service design, development and testing, and one indicated that their plan also involved organizational processes and disciplines.

International Sample, 2011:

To get more excerpts from our research studies, and to receive news and updates about our upcoming research projects like World Market for Substation Automation and Integration Programs in Electric Utilities: 2014-2017, write to info@newton-evans.com with a subject line, “Sign me up!”

Posted on August 30, 2013August 30, 2013 by Editor

Substation Automation Spending: Recap

Here are some of the key findings from the last survey of the World Market for Substation Automation and Integration Programs in Electric Utilities which was conducted in 2011. This study will be updated when research begins in 4th quarter of 2013. The 2011 study sampled roughly 20% of electric utilities worldwide by number of end use customers.

How much is your utility likely to spend on new and retrofit substation automation and integration programs between 2011 and 2013?

A frequency distribution shows that most of the respondents in the sample did not have funds budgeted for one or more years in both categories (retrofit and new). About twenty utilities were spending less than $100,000 in one or more years, and eleven utilities planned to spend over $1 million. A handful of respondents planned to spend between $500,000 and $600,000.

The international sample of utilities outside the U.S. and Canada had a larger proportion of respondents spending over $1 million, however, the international utilities in the sample tend to individually represent much larger, less deregulated infrastructures than U.S. utilities. The sample of international utilities spent an average of $6.5 million per year on new substations with a median of $1.4 million.

To get more excerpts from our research studies, and to receive news and updates about our upcoming research projects like World Market for Substation Automation and Integration Programs in Electric Utilities: 2014-2017, write to info@newton-evans.com with a subject line, “Sign me up!”

Posted on August 21, 2013August 21, 2013 by Editor

Substation Communications Protocols

Choice of protocol within the substation, between substations, and from the substation to the external host or network.

Newton-Evans studies of the North American market for substation automation suggest that while there has been some (minimal) movement toward at least testing and piloting IEC 61850 in the U.S. and Canada, there has been no significant shift toward widespread adoption of the protocol suite among North American utilities. Nonetheless, previous studies have predicted that by the end of this year 10% of North American electric utilities may be using some level of IEC 61850, probably in conjunction with other protocols.

The current users of DNP 3 and Modbus continue on with these protocols (migrating from serial to LAN-based versions) through the end of this year. Several utilities are reliant upon SEL protocols in more of their substation integration activities, at least among SEL customers.

Are protocols encrypted?
The trend towards encryption of substation communications is growing steadily every few years, as is evident from previous Newton-Evans studies.