Category: Power Equipment

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A Look at the U.S. Medium Voltage Electric Power Equipment Services Market

The total MV services market is very large – possibly in excess of $15 billion. This larger view of the MV services market encompasses multiple segments such as field and in-plant equipment maintenance and refurbishment; construction-related services for distribution substations and MV under-grounding activities; training classes for utility/C&I engineering and operations staffs; site analysis and permitting for distribution utilities and renewables projects; and MV equipment testing services, including commercial test labs and field service diagnostics and testing firms. In addition, vegetation management and telecommunications services are both very large power utility-related businesses in their own right, with significant portions of segment revenue obtained from medium-voltage projects, and these topics will be covered in articles later in 2024.

U.S. Medium Voltage Equipment Services
The U.S. MV equipment services market itself is very large (>$4 billion is our estimated minimum market size) in total, comprised of at least three major sub-segments and is served by hundreds of national, regional and local-area electrical equipment service providers.

While much of MV equipment services growth for third party firms seems likely to be in the 3-5% range, there are a few areas that may see larger increases in revenues, including the upper MV ranges of switchgear, along with gas-insulated units and underground equipment. As well, transformer maintenance, repairs and retrofits are commanding more attention and relying on third party services as new transformer prices, product availability and long lead times affect grid reliability.

Numerous MV Maintenance Market Participants
In multiple research studies conducted over several decades, Newton-Evans Research has found more than 275 U.S.-based companies and organizations provide one or more types of MV equipment-related services to electric utilities and to C&I customers. Each of these was earning related revenues of at least $10 million in annual revenue, with about 45-50 firms in the group earning in excess of $20 million annually from the provision of MV-related services. There is a growing group of domestic firms earning in excess of $250 million in MV services revenue. Another large segment of commercial providers offers services in addition to equipment maintenance, repair and refurbishment. These include utility staff training services, equipment testing services and some portion of construction related (design/build) services.

When it comes to MV equipment services, two product categories account for the lion’s share of segment revenue. These are switchgear/circuit breaker and distribution transformer equipment services.  Let’s take a closer look at these.

MV Switchgear Services Revenue Assumptions based on Third Party Service Firm Website Information
Switchgear services (maintenance, repair, refurbishment and re-manufacturing) are often grouped with similar Circuit Breaker services and together account for several hundred million dollars of utility and C&I expenditures. There are national, regional and local area third-party T&D services firms that provide various levels of equipment services for utilities and the C&I communities. Some of the national names prominent in the switchgear services, maintenance and repair/refurbishment market include Shermco, CBS Services and Saber Power Services.

While many services firms are in the “small business” category and earn less than $10 million annually, there are several others that earn in excess of $100 Million from a variety of T&D equipment service offerings.

Distribution and Power Transformers
While Newton-Evans estimates as much as $900 million is spent annually on electric power transformer services and replacement parts, the majority of this amount goes for power transformers. Nonetheless, there are several firms that specialize in service and repairs for pole-top and pad-mount distribution transformers. Among the large firms that service, repair and refurbish transformers of all sizes and offer nationwide services, include companies such as IPS, Sunbelt Solomon, RESA and others. A number of smaller firms specialize in maintenance, repairs for distribution transformers at a regional level, including Northeast Power, UTB Transformers and Valley Transformers, Inc.

Twenty years ago, a Newton-Evans survey found that many utilities did not bother with repairs to, nor did they consider third party maintenance, of pole-mount distribution transformers. Unit replacement was easier and faster than was rework and repair. At that time, manufacturing capacity for pole-mount units was sufficient to meet domestic U.S. demand, and lead-times were quite short, compared with today’s market. Most electric power utilities had been able to procure and store scores or hundreds of spare pole-top units for emergencies or time-based replacement up until the COVID years.

All Other MV Equipment Services: The third arm of MV equipment services we consider to be comprised of “all other” equipment of significant cost – that is, costing multiple thousands of dollars. Based on a small sample utility survey conducted during late 2023, it appears that relatively low-cost equipment including reclosers, sectionalizers, fuse links, distribution line monitors, fault current limiters, surge arresters and MV capacitors were very likely to be replaced rather than repaired.

Our next article on MV Services will focus on construction-related services for distribution substations and MV undergrounding activities; training classes for utility/C&I engineering and operations staffs; site analysis and permitting for distribution utilities and renewables projects; and MV equipment testing services, including commercial test labs and field service diagnostics and testing firms.

Keep in mind if you need to have an understanding of the U.S. medium voltage equipment market, our report series of two to four page U.S. market overviews, covering 17 MV equipment types, may be helpful to you. The link for for further information and to place an online order is here:
https://www.newton-evans.com/product/overview-of-the-2024-2026-u-s-transmission-and-distribution-equipment-market-medium-voltage-series/

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Voltage Regulators –Guardians for Maintaining High Quality Power Distribution

 

Voltage Regulators –Guardians for High Quality Power Distribution  –   In an electric power distribution system, voltage regulators may be installed at a substation (1p/3p) or along distribution lines/feeders (1p) so that all customers receive steady voltage independent of how much power is drawn from the line. The distribution automation portion of the VR market is primarily for automated control of single-phase units installed along MV distribution lines.  In both distribution feeder and substation applications, VRs are often paired with power capacitors.

Currently the single most important factor behind the growth in use of single-phase VRs is the increase in installations of distributed energy resources (DERs) and the impact that these grid-connected resources are having on grid voltage stability.  Because of the variable or intermittent nature of DERs, there is a need to control voltage fluctuations, hence the push to utilize more VRs by utilities that are actively involved with DERs in their service territories. New construction of C&I sites, residential developments in the suburbs as well as feeder length in large rural areas are also key factors affecting the increase in use of VRs.  Certain regulatory actions in place or planned will continue to influence the need for VRs.  See the chart just below for a look at key drivers for using VRs among IOUs, Public Utilities and electric power cooperatives.

Click on chart to enlarge! Keep in mind that the nation’s electric power delivery/distribution system was designed for one-way (or uni-directional) power flow, and with the development of DERs, we are confronted with a need to accommodate two-way (bi-directional) power flows.  This changes the feeder voltage profile making voltage regulation more challenging, with DERs tending to cause local voltage rise along a distribution feeder.  The expansion of variable renewable generation resources owned by industrial/commercial companies will mean growth in the non-utility/C&I portion of the VR market.  VRs will continue to be used to control voltage levels from these intermittent resources.

 Market Size Summary:

Some suppliers have suggested to Newton-Evans that growth of 10-15% per year is on the horizon.  A lot will depend upon continuing economic recovery and the promulgation of DER-friendly policies and regulations being planned over the coming years.  Currently, there are three principal manufacturers of automated voltage regulators serving the domestic U.S. market.  These are General Electric, Eaton Corporation and Siemens.  Together the “Big Three” control about 75-80% of the combined VR market.  Howard Industries is next, followed by Schneider Electric, Delta Star and Basler Electric with each having a few dozen important utility customers and together comprise the remaining 20-25% of the VR equipment manufacturing market.

Market Drivers:

Currently the single most important market driver for using VRs is the increasingly important role of distributed energy resources (DERs) and the impact that these resources are having on grid voltage stability.  Because of the variable nature of DERs, there is a need to control voltage fluctuations, hence the push to utilize more VRs by utilities that are actively involved with DER in their service territories. New construction of C&I sites and residential developments in the suburbs are also key factors affecting the growth in use of VRs.  Feeder length among suburban, exurban and rural areas and some regulatory actions also impact the need for VRs.  Perhaps offsetting some of the demand from DER sites will be a new generation of smart inverters that may be able to provide voltage stability from DER sites to the grid interconnection point, perhaps nullifying the need for a separate VR on-site.  The publication of IEEE 1547-2018 provides for performance criteria for DERs including such functionality as Volt-Var control which can also be used to help regulate the distribution system.

Operational Driver:

While the use of single-phase VRs can be found among many hundreds of IOUs, public utilities and cooperatives, the use of three phase VRs is less widely used among munis and co-ops.  Many of these utilities have switched to using single-phase units where, in the past, they may have used a three-phase unit.  There are also about 10-15% of utilities that do not use VRs, but rely on on-load tap changers (OLTCs) with substation transformers – most within urban corridors with relatively short distribution feeders.  You may want to return here for more articles on grid modernization over the coming weeks and months.

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Newton-Evans Research Publishes 15 Market Snapshot Reports on High Voltage Power Equipment and Transmission Substations

March 22, 2021.  Ellicott City, Maryland.  The Newton-Evans Research Company has announced publication of a set of 15 U.S. high voltage equipment and substation market two-to-four-page summaries.  The new series of market overview reports (executive market summaries) includes supplier listings, representative products, and estimated market size for each topic, including vendor market share estimates and market outlook through 2023.   Electric utilities accounted for about 86% of HV-related equipment and transmission substation spending overall.

  • Commercial and industrial end-users accounted for more than $300 Million on substation construction projects in 2020, according to Newton-Evans’ estimates. Much of this amount was for construction of renewable energy gathering substations.
  • Substation construction represents the largest single investment area among all bulk power system components.
  • HV gas-insulated substations and gas-insulated switchgear represent a growing segment of bulk power-related investments. Growth is likely to accelerate once non-SF6 gas alternatives are more widely available for higher voltage equipment.
  • NERC projections suggest that as many as 14,000 HV line miles will be constructed over the 2021-2030 period. Importantly, more than one half of the expected expansion will be at 200kV or higher.  This will mean a need for about 250-300 new/up-rated transmission substations.
  • IOUs, G&Ts and federal agencies were most closely identified as having HV substation construction plans. Distribution cooperatives, municipal operations and industrial sites were more likely to plan MV substation construction projects.  Following is a look at identified transmission projects.

 

 

 

 

 

 

 

  • HV circuit breaker shipments likely exceeded $900 Million in 2020, with more than one half of the total investment made for 69kV-200kV range of breakers.

 

 

 

 

 

 

Further information on the 2021-2023 series of U.S. High Voltage Equipment market overviews is available on the Newton-Evans Research Company website:  https://www.newton-evans.com/our-reports/ for a brochure or to place an order for this new series or many other available T&D-related market reports.  This series is available via online purchase and immediate download.  Individual HV topical reports are priced at $150 per report, and the entire 15-report series is priced at $1,250.00.  Newton-Evans Research Company, P.O. Box 6512, Ellicott City, Maryland 21042. Phone: 410-465-7316.

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Estimated U.S. Sales of Medium Voltage Equipment, Components and Related Services Accounted for about $3.6 Billion in 2017 – Likely to Reach $3.9 Billion in 2020

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 2020. Electric utilities accounted for nearly two-thirds of purchases of the medium voltage product categories in this series, with industrial and commercial usage accounting for about one third of the value of MV equipment shipments. A majority of the included grid infrastructure equipment and products continue to be manufactured and/or assembled in the United States.

Continue reading Estimated U.S. Sales of Medium Voltage Equipment, Components and Related Services Accounted for about $3.6 Billion in 2017 – Likely to Reach $3.9 Billion in 2020

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Proposed Import Tariffs: A BAD IDEA for the U.S. Electric Power Industry

by Chuck Newton

We all know that the current administration wants to “make America great again,” but using tariffs to prop up our homeland infrastructure is not the right approach to take at this time.

The U.S. electric power industry can ill afford the extra costs that would be incurred with the placement of 10-25% tariffs on iron, steel, and aluminum, which are core building blocks of our nation’s electrical infrastructure with a good percentage of finished electrical apparatus, equipment and ancillary products manufactured with imported steel and aluminum. Continue reading Proposed Import Tariffs: A BAD IDEA for the U.S. Electric Power Industry

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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

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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
VCSusedMost
*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.

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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?
powerFuses_refillV1time_tblchrt

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?
powerFuses_indoorVoutdoor_tblchrt

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