Category: Announcement

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Measuring the Impact of GE Energy’s Acquisition of SNC Lavalin ECS Business Unit

August 2, 2010. Well, it was inevitable that GE would make a play for a larger share of the global EMS/SCADA/DMS market and today the company announced the acquisition of the Montreal-based Energy Control Systems business unit of SNC Lavalin. With this acquisition, Newton-Evans believes GE Energy now ranks fourth in the world in terms of numbers of significant energy management, large SCADA and large distribution management systems. Note that the “GENe” name of the ECS’ offerings might just be an added plus!

A few quick facts about the impact of this acquisition:

Continue reading Measuring the Impact of GE Energy’s Acquisition of SNC Lavalin ECS Business Unit

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Chuck’s Composite (July 2010)

Very Large Power Transformer Industry: Well, wouldn’t you know it, now that EFACEC has opened the first major new transformer plant in the U.S. in decades, there is more to come. First, the leading India-based transformer manufacturer, Crompton-Greaves, has just opened a new large transformer facility in Missouri. Now word is that Hyundai will construct a large power transformer plant in Alabama. Interestingly as well, the GE PROLEC large power transformer business, having recently completed a significant plant expansion in its Monterrey, Mexico facility, has now surpassed the billion dollar level of business in its own right, based on our estimates.

All in all, these are very interesting and important developments that may help drive decisions among North American utility planning staffs to get moving with procurements for a new generation of “smarter” large power transformers to replace the aging fleet of some 50,000 large power transformers now more than 25 years old, and with a good percentage approaching 40 years of service.

Possible Acquisitions: Rumors have reached Newton-Evans about potential acquisition discussions between two giants (one a mega-giant) in the North American electric power T&D equipment and grid automation business. Could be a lot of industry excitement if this actually develops beyond the “whispers” heard recently.

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Preliminary Findings from Mid-2010 Study of Energy Management Systems, SCADA and DMS/DA Systems

June 21, 2010 update. This interim client summary is based on tabulations of 65 survey completions from very large, large and mid-size North American utilities, together accounting for about 20% of served end-users. Bold print indicates a change from the preliminary findings released on June 14. These observations on some of the key topics covered in this year’s study (the 12th Newton-Evans Research world study of EMS, SCADA and DMS/DA over the past quarter century) will continue to be updated for clients as our sample size increases dramatically. The current sample represents about 20% of North American end users of electricity. The next update will feature observations and findings from more leading investor-owned utilities and will represent about 25% of served North American end users.

Smart Grid Initiatives – Funding

  • Most utilities plan to proceed with self-funded approaches to smart grid initiatives. Nearly 80% indicated that they would be making some effort over the next 24-36 months on funding smart grid initiatives.

Control Systems Upgrades and Replacements

  • Several upgrades and system replacements are being planned for EMS (23%) and for SCADA (29%) during the 2010-2012 periods.

Continue reading Preliminary Findings from Mid-2010 Study of Energy Management Systems, SCADA and DMS/DA Systems

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ABB and the Ventyx Acquisition – Why Now, What Next?

By Charles W. Newton, Newton-Evans Research Company, Inc.

(Updated May 7)

The May 2010 announcement of the ABB acquisition of Atlanta-based Ventyx is likely to serve as a wake-up call to the major competitors of ABB in the electric power T&D and operational smart grid market, primarily the likes of Areva T&D, GE and Siemens. This week’s acquisition puts ABB squarely in the heart of “smart grid” activities – both from an operational perspective, where it has been a global market co-leader, and now set to gain a significant market position in the burgeoning enterprise utility “smart grid” software market, a perspective beyond that of any direct competitor.

ABB will now be in a better position for more smart grid-related opportunities than any other of the IT-centric “smart grid” players, none of whom can compete directly in the operational side of “smart grid” with smart field equipment offerings. Overall, this eases the “shopping/procurement” burdens of utilities. The effect of ABB’s acquisition of perhaps the best available and largest independent energy industry applications software provider positions ABB for a larger role in the hundred-billion dollar-plus market for operational equipment and for energy enterprise software.

Continue reading ABB and the Ventyx Acquisition – Why Now, What Next?

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Newton-Evans Research Announces New Report on U.S. Smart Grid Projects with Cumulative Values of $13.4 Billion.

More than 150 U.S. smart grid projects have been identified, summarized and categorized by Newton-Evans Research staff in this April, 2010 compilation of smart grid project summaries. The 60-page report contains narrative summaries of each of the projects, and includes a sortable EXCEL spreadsheet of the identified projects. Utility funded projects and projects that have received DoE stimulus funding are included in the report. Total values of the projects uncovered in this report stand at $13.4 billion.

This report has been prepared by the Newton-Evans Research Company to serve as a quick reference guide to the U.S. electric power utility smart grid activities planned and in progress as of the second quarter of 2010. Each of more than 150 projects have been included here, complete with a utility listing, followed by a brief summary of the smart grid program. Where possible, the total budgeted dollar amount for each specific project has been included, and any stimulus funding also noted. These projects have been categorized by our research team into one or more of 11 smart grid-related project categories (as defined by the GRIDWISE Alliance) on a “best-fit” basis.

The report includes a number of utility self-funded smart grid projects as well as those programs receiving ARRA stimulus funding grants from the U.S. Department of Energy.

In addition to the narrative report summaries for each project, the e-report includes an EXCEL spreadsheet of project listings, enabling the interested reader to sort on a variety of categories (i.e. high-to-low funding; project classification, etc.)

The SMART GRID PROJECTS  2010 report, priced at $195.00,  is available for immediate download on our reports page.

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New Distribution Automation Study Includes Detailed “Sub-Segment” Level Market Information.

The newest DA report (March 2010) from Newton-Evans Research includes summary level tables of market data for a total of 21 related market categories of equipment, software and services. The 21 tables are grouped under one of four major DA market segmentation categories including feeder primary components; feeder electronics; feeder automation software and services; and distribution management activities.

Each table includes a summary of key trends, market size estimates and key players active in the North American market. The 21 categories for which the summaries have been prepared include: reclosers, sectionalizers, voltage regulator transformers, capacitor banks, small power (MV) transformers and distribution transformers. Summary tables for electronic recloser controls, voltage regulators, capacitor bank controllers, fault indicators, pole-top and pad-mount RTUs, and DA communications are included.

Rounding out the market data summaries are these: DA software, related engineering services, SCADA, OMS, Network analysis, substation transformer load management, voltage control systems, condition monitoring and fault location.

When all components of distributon automation are evaluated together, the DA-related equipment and services market is now above $750 million in the U.S. and Canada, and more than two billion dollars globally. Much more information is provided in the Newton-Evans study entitled “Distribution Automation: Trends, Developments and Retrospectives 2007-2018.” (see the report order steps here http://www.newton-evans.com/?page_id=7 for purchase details).

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Density of Distribution Network Intelligent Electronic Devices Seen as Key to Selection of DA Communications Approach

March 13, 2010 —Ellicott City, Maryland. The Newton-Evans Research Company today announced the publication of its newest report titled, “Distribution Automation: Trends, Developments and Retrospectives 2007-2018.” This report is a compilation of findings from several recently completed Newton-Evans’ market and technology studies and includes new and updated tables on smart field device density, communication approaches planned for adoption for DA, DA market size projections, DA adoption rates, and CAPEX and O&M budget trends for DA. Continue reading Density of Distribution Network Intelligent Electronic Devices Seen as Key to Selection of DA Communications Approach

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Utility CAPEX Report Published from the January 2010 Newton-Evans Study of Electric Power T&D Investment

Tracking Study Finds Increased 2010 CAPEX and O&M Budgets for Smart Grid-Related Automation and Transmission Categories

February 25, 2010 —Ellicott City, Maryland. The Newton-Evans Research Company today announced the publication of its third study in the multi-year tracking research program looking into electric power utility CAPEX budgets related to smart grid investments and infrastructure spending plans.
Findings from the January 2010 Newton-Evans global tracking study of electric power transmission and distribution investment are somewhat positive, compared with the two earlier tracking studies conducted in 2008 and 2009. Each of five “smart grid” component areas, plus transmission and distribution infrastructure development, has been reported by utilities located in more than 25 countries to more likely be either “increased” or “unchanged” rather than “decreased” from June of last year. The highest percentages of officials reporting increases were in the areas of protection and control, and transmission infrastructure CAPEX budgets. Continue reading Utility CAPEX Report Published from the January 2010 Newton-Evans Study of Electric Power T&D Investment

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Areva T&D Apparently To Remain in French Hands After All

After months of internal debate and consideration of proposals from GE and Toshiba, Areva’s top tier of executives have decided to keep the $7 billion-plus T&D business under French control. AREVA’s Supervisory Board met on November 30, 2009 to examine the bids. After review, the Supervisory Board asked the Executive Board to begin exclusive negotiations with Alstom/Schneider.

The consortium offered 2.29 billion Euros in equity value, i.e. 4.09 billion Euros in enterprise value. The bid does not include any requirement for a seller’s warranty but includes a buyer’s commitment to maintain all European sites for a 3-year period.

To ensure that all AREVA T&D team members are integrated properly, Alstom/Schneider have also agreed to offer to all European employees a similar position in the same geographic area, at an equivalent qualification level and without loss of compensation or seniority.

Finally, unless the economic environment deteriorates significantly, the buyers made a commitment not to implement any layoff program except for voluntary terminations. There are still many unresolved issues including these: Continue reading Areva T&D Apparently To Remain in French Hands After All

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Potential Synergies of an Areva T&D Acquisition by General Electric: Why Alstom-Schneider and Toshiba are Also in the Bidding

As many regular readers of Newton-Evans’ reports already know, there are three major contenders for the $7 billion Transmission and Distribution business units of Areva Corporation. These are the American firm General Electric, the French corporate combination of Alstom and Schneider Electric, and the Japanese company, Toshiba.

Newton-Evans Research believes the greatest benefit to the electric power industry may result if General Electric’s offer becomes the winning bid. The reason: Areva T&D fills several product/equipment gaps in GE’s T&D product line and related automation offerings. 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 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 $25-40 billion on a worldwide basis. Areva T&D earned about $3.5 billion in HV equipment sales in 2008-2009. Continue reading Potential Synergies of an Areva T&D Acquisition by General Electric: Why Alstom-Schneider and Toshiba are Also in the Bidding

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Critical Issues In Protective Relaying: Engineering Perspectives From 24 Countries

The newest study of electric power grid protection and control, published by Newton-Evans Research on October 30, 2009 is now available for on-line purchase. The 81 page report is based on extensive surveys of protection and control engineers and P&C management from around the world. The survey was designed by engineers to include study of key topics of interest to the P&C community. Issues covered in the study  include equipment/device issues; tripping and control practices, settings and analysis, testing frequencies and methods.

One theme that emerges from the varying responses is that there is no particular “right” way or “wrong” way to go about designing and implementing a particular relay scheme. Some utilities design schemes in a certain way, while others do it another way. What our project manager labels “Philosophy of Engineering” is evident in this study, especially in the choices made by P&C engineers as they apply relays to their systems.

This report includes more respondent comments than any previous relay survey conducted by Newton-Evans. We encourage you to read through these list compilations, as there is a wealth of information contained therein. What is a major issue for one engineer is not even a concern for another engineer.

As one example of utility diversity, it is fascinating to see in Section D: Strategy/Policy Issues the variety of ways Utilities are structured to handle the responsibilities of their Relay Organization, as well as to review the tactics used to attract and retain the next generation of relay engineers. Some Utilities have extensive training programs for young talent, while many do nothing or do not even recognize it as a potential problem. Continue reading Critical Issues In Protective Relaying: Engineering Perspectives From 24 Countries

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Mid-2009 Global Protective Relay Market Study Completed – Four Volume Study Released

Market Indications Point to Lower CAPEX Investment and Some Project Deferrals for Protection and Control Activities in mid-2009, Rebounding by mid-2010

June 29, 2009 Ellicott City, Maryland. Newton-Evans Research Company has completed a four-month research study and survey of protective relay usage patterns in the global electric power business. Findings from more than 130 utilities located in more than 40 countries, point to a number of changes in buying patterns and usage trends since the company’s last topical study was completed in late 2006.

The percentage of digital relays in the mix of all protective relays used by utilities continues to increase. More than 50% of all generator and transmission line relays installed in the surveyed North American utilities are now digital units. The vast majority of new and retrofit units being purchased in North America and around the world are also digital relays, but in some of the protection applications studied, such as motor protection and large generator applications, electromechanical and solid state relays continue to have a niche market position.
Additional highlights from the mid-2009 study include the following:

  • Worldwide sales of medium voltage and high voltage applications of protective relays currently exceed $1.5 billion. Electric utilities, industrial companies and OEM manufacturers purchase and integrate these devices into grid operations, motor controls and as components of transmission and distribution equipment such as power transformers and switchgear.
  • At least five protective relay manufacturers each ship more than $150 million worth of protective relays each year. These firms include ABB, Areva T&D, GE Multilin, SEL Inc. and Siemens Energy. Several additional suppliers have annual shipments of from $25 million to $150 million.
  • Electric utilities accounted for about $575-675 million worth of direct purchases of protective relays in 2008. Industrial purchases accounted for at least $350-425 million.
  • Electro-Mechanical units continue to account for more than $100 million on a global scale.
  • The protection and control market is now being impacted by the global recession, but is expected to rebound by mid-2010, in the views of hundreds of survey respondents to both this study and a separate CAPEX study undertaken by Newton-Evans in June 2009.

The Newton-Evans survey of protection and control officials included more than 20 detailed product functionality and related technical questions, incorporating more than 300 items of information obtained from each of the participating utilities.

The mid-2009 Protection and Control study has been published by Newton-Evans Research Company in a series of four reports. These reports are geared to the planning needs of protective relay suppliers, power industry consultants, and utility protection and control departments. These volumes include the North American Market Study, the International Market Study, Supplier Profiles, and Global Market Assessment and Outlook.

Further information on the research series The World Market for Protective Relays in Electric Utilities: 2009-2011 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 additional information. Send email to info@newton-evans.com

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Volume One of 2009-2011 World Study of Protective Relay Use and Plans Just Released

The Newton-Evans Research Company has published Volume One of its newest study of protective relaying usage patterns and technology trends in the world’s electric utilities.  Volume One provides detailed information on the North American market.  The 165 page report features several topical discussions and survey analysis of IEC 61850, substation cyber security, demand levels for several types of protective relays, vendor assessments and plans for future use.  Volume Two, based on survey research with international utilities, will be published by 15 June 2009.  Please contact Newton-Evans for a descriptive brochure on this report series.

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Market Trends Digest

The first quarter 2009 issue of Market Trends Digest is now available. This issue includes a look back at our study of substation automation completed last year, as well as a look ahead at some interim findings from our study of protective relays which is now currently underway (scheduled for completion in May). Also included in this issue is an article by CEO Charles Newton and a brief look at Smart Grid expenditures and IT spending for Adminstrative and Operational activities in 2009 and 2013.

Click image to open .pdf in a new window.

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Protective Relay Marketplace – Our 7th Worldwide Study Now Underway

Newton Evans Research Company is embarking upon its 7th worldwide study of the protective relay marketplace. The 2009 survey has been co-designed by Newton-Evans’ staff, major electric utilities and leading suppliers and has been extensively reviewed and pre-tested.  Global fieldwork is now underway with participation from the world’s leading protection and control community within the electric power delivery industry expected to exceed 100 major participants.  The 4 volume report series is currently anticipated to be available in April 2009.

Please see our new brochure on this topic (.pdf) here:
relay_brochure2009.pdf

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Global CAPEX and O&M Expenditure Outlook for Electric Power Transmission and Distribution Investments: 2009-2010

This recently completed study of Electric Utility T&D budget plans for Capital Expenditures, Operations and Maintenance includes survey responses from over 100 utilities worldwide. This study looks at general reasons for or against increasing, decreasing or maintaining budget levels through 2010. This bold new report has captured 2008 year-end information from leading utilities concerning all aspects of operational planning for smart grid initiatives including control systems, substation automation, AMR/AMI, distribution automation and protection and control.  The outlook for transmission and distribution infrastructure spending is also included.

Purchase the study online by visiting our reports page to order.

Please see our news release on this topic (.pdf) here:
news_release-CAPEXstudyjan09.pdf

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World Market for Substation Automation and Integration Programs in Electric Utilities: 2008-2010 Volume 2 – International Market Now Available

December 1, 2008. . . . Ellicott City, Maryland. The Newton-Evans Research Company has released research findings from its mid-year study of International utility substation officials. Forty-nine large and mid-size electric utility organizations participated in this new mid-year study.

See our services and reports page for ordering details.

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Remote 2008 Conference & Expo – SCADA, Device Networking, M2M, Wireless Technology, Onsite Power and Security for Remote Sites

The Remote 2008 Conference and Expo will be held November 5-6, 2008 at the Atlanta Marriott Marquis Hotel, Atlanta, GA. This technology-driven and solution oriented event brings together innovators and users from multiple industries, including utilities, power, oil & gas, telecom, industrial, water & public utilities, agriculture and facilities management.

The conference will focus on the leading advancements for the monitoring and management of distributed equipment and facilities, remote assets, automated process & system controls and device networks. Industry experts will speak on SCADA, security (cyber and physical), control, automation, onsite and back-up power, M2M, networking, emerging wireless technology, telemetry, environmental monitoring, grounding and remote smart services.

Newton-Evans CEO Charles Newton will be Keynote Speaker on Thursday morning, and he will speak on Trends in Substation Automation, Control Center Operations and Field Automation for the World’s Utilities. Mr. Newton will provide a synopsis of findings from Newton Evans Research Company’s 2008 global study of substation automation and control center SCADA operations. These research studies encompassed current issues, including cyber security for NERC CIPS compliance, communication protocol usage and overall smart grid investment focus for utilities located in more than 50 countries. Coverage of additional remote monitoring and control functions such as FDIR (fault detection, isolation and service restoration) being performed by electric utilities will be included in the presentation.

Additional information available from the Remote Site and Equipment Management website.