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Update to 2019 Market Outlook for Protective Relays and Grid Modernization Efforts

Refreshing the Outlook for P&C Investments Specifically and for Grid Modernization

The Newton-Evans study of protective relays that was completed several months ago was based on a 2019 multi-month survey-based study of protection and control engineering department heads and senor staff members at key electric power utilities in 30 countries. A total of 97 utility P&C managers and staff discussed their usage patterns and plans for relay applications, protocols and telecommunications architectures as well as their investment plans for protection and control activities during the field collection phase of the study. In addition to utility surveys, more than 30 industry officials from several protective relay manufacturing firms around the world also participated in the study.

The report series provides updated information on a variety of “universally-applied” protective relay types including generator, transmission line, distribution feeder, transformer and motor protection units.

Estimates and forecasts contained in the 2019-2022 report were premised on five sources of information:

  • In-depth utility surveys and interviews of 98 utility protection and control officials located in 30 countries conducted in 2019.
  • Relay manufacturer surveys and channel member interviews together with available financial information from suppliers.
  • Protection and Control consulting firms in six countries.
  • Excerpts from related multi-client and commissioned studies undertaken and completed by Newton-Evans Research Company.
  • Economic and financial global market outlook information developed by a number of respected public and private sources (e.g., World Bank, UNDP, IMF, Bloomberg, and others).World and Regional Economic Outlook: Implications and Viewpoints for the Protective Relay Market

Continue reading Update to 2019 Market Outlook for Protective Relays and Grid Modernization Efforts

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Transmission & Distribution World – New Article by Chuck Newton

Grid Modernization from an Energy Policy Perspective in 2019

by Chuck Newton

This article has just been published in the November 21, 2019 online edition of Transmission & Distribution World.  The article is part one of a two-part series on current policy trends, first  presented by Chuck Newton at the Little Rock, Arkansas EMMOS Users Conference in September 2019.  The link to the T&D World article is here:  https://www.tdworld.com/smart-grid/grid-modernization-energy-policy-perspective-2019 .

I hope you find the article informative and helpful in navigating the fairly complex regulatory and policy-making organizations that affect and drive the U.S. electric power industry – affecting utilities, equipment manufacturers, systems and services providers, the engineering consulting community and the many millions of residential, commercial and industrial electric power users.

Kind Regards,

Chuck

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Wide Variations in Networking Technologies Used for Substation Communications Noted

November 8, 2019.  Ellicott City, Maryland.  With nearly 100 officials from 30 countries participating in the 2019 Newton-Evans study of trends in protection and control practices, there were some wide variations noted in the use of networking technologies across the world.

Among 55 North American utility respondents, the most prevalent networking technologies in use during 2019 included SONET/SDH (40%), T1/E1 (33%) and a mix of T1/E1, SONET and packet-based (33%). This seems to imply that SONET is the leading technology among the sample. However, the two networking technologies to watch out for in the next 4 years are IP/MPLS and SDN; 18% plan to use IP/MPLS and 15% plan to use SDN by 2022.

The most prevalent networking technologies used in 2019 among the 42 international utility survey participants included SONET/SDH (31%), Industrial Carrier Ethernet (29%) and IP/MPLS (26%). Based on the survey sample, the leading technologies planned for development by 2020 include MPLS-TP (29%) and SD-WAN (24%).

The Worldwide Study of the Protective Relay Marketplace in Electric Utilities: 2019-2022 measures current market sizes and contains projections on a world region basis for the next few years. More than 35 topics are covered in the utility survey portion of this study with participation from nearly 100 utility P&C officials from countries around the world.  The complete four-volume study of protection and control practices and trends is available from Newton-Evans Research Company.  Details are available at https://www.newton-evans.com/product/the-worldwide-study-of-the-protective-relay-marketplace-in-electric-utilities-2019-2022/ .

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U.S. Market for Distribution Transformers Standing at $3 Billion, Based on Findings from Recent Newton-Evans Study

7 November, 2019.  Ellicott City, Maryland.  Based on the findings obtained in a recently completed study of the distribution transformer market in the United States, Newton-Evans provides the following information summary.

Distribution Transformer Market Size Estimates

The aggregated U.S. market for three groupings of distribution transformers stood at about $3 Billion in 2018 as seen in the above chart.  The market was segmented by Newton-Evans as shown here to include residential pole and pad mount units; dry type transformers, and small power/large distribution transformers ranging from 1-25 MVAs.

Institutional Barriers to U.S. Market Entry for Distribution Transformers

The third quarter 2019 Newton-Evans study included survey questions for both end-users and suppliers about any institutional barriers they see to potential market entry by non-North American manufacturers.

Among utility respondents, nearly one-half indicated compliance with recently enacted DOE regulations and recommendations for energy efficient distribution transformers as being a key barrier to market entry by foreign-based suppliers (outside of the NAFTA region). One quarter indicated “buy American” programs at their utility was also a deterrent. About 1 in 5 respondents indicated that Underwriters Lab certification was also important, and several respondents had other supporting comments to offer.

Suppliers commented that the enactment of tariffs also served as a deterrent to foreign manufacturers, while one of the largest domestic suppliers of overhead distribution transformers cited the importance of rapid post-storm response times as being a key factor in re-supplying utilities quickly. Another major U.S. transformer manufacturer cited three factors: UL Certificate requirement, DOE Efficiency requirements and “Buy American” initiatives.

Continue reading U.S. Market for Distribution Transformers Standing at $3 Billion, Based on Findings from Recent Newton-Evans Study

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40% off “The World Market for Substation Automation and Integration Programs in Electric Utilities: 2017-2020.”

In 2017 Newton-Evans completed its eleventh worldwide study of the market for substation automation and integration systems in electric utilities. This 4-volume report series measures current market sizes for several sub-categories of equipment and services in North America and by World Regions. It also estimates and forecasts demand for substation automation equipment through year-end 2020, and profiles utility requirements as well as broader product and market requirements.
Continue reading 40% off “The World Market for Substation Automation and Integration Programs in Electric Utilities: 2017-2020.”

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40% off “The World Market Study of SCADA, EMS, DMS and OMS in Electric Utilities: 2017-2019”

In 2017, Newton-Evans published its 14th survey-based study of the market for electric power control systems (EMS, SCADA, DMS and OMS). Thirty-two of the 68 North American utilities indicated they are planning an upgrade to their existing SCADA system by year-end 2019.

“Do you plan to add any new/replacement or upgraded/retrofitted systems by 2019?” 
Continue reading 40% off “The World Market Study of SCADA, EMS, DMS and OMS in Electric Utilities: 2017-2019”

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Market for “Smart” RTUs Linked to Increase in Sensor Data

According to Schneider Electric, one of the world’s leading RTU manufacturers, Smart RTUs “combine the monitoring and communication capabilities of a remote terminal unit (RTU) with the processing and data-logging power of a programmable logic controller (PLC).” Two recent Newton-Evans studies take a look at Smart RTUs both inside the substation and outside in the field.

Continue reading Market for “Smart” RTUs Linked to Increase in Sensor Data

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Electric Utilities Will Require More 3rd Party Assistance for Cybersecurity in the Next 3 Years

The recently completed Newton-Evans study of the Global Market for Protective Relays shows that out of 97 electric utilities surveyed around the world, 20% claim they currently require outside assistance for cyber security audits of their relay systems, and an additional 42% claim they will need third party assistance by 2022.

Continue reading Electric Utilities Will Require More 3rd Party Assistance for Cybersecurity in the Next 3 Years

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Slight increase in the use of PMUs among Electric Utilities according to survey

According to a survey of 97 electric utility officials in 30 countries, the use of Phasor Measurement Units (PMUs) may be on the rise. The 2019 Newton-Evans study of protective relay usage, plans and trends found that 44% of International utilities and 31% of North American utilities surveyed indicated use of PMUs; a 3% increase over the previous study’s findings. See the comparison of findings in Figs. A and B below.

Continue reading Slight increase in the use of PMUs among Electric Utilities according to survey

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One-Third of Electric Utilities Surveyed Indicate Over Half of Relays Have Been In Service for >15 Years

Roughly one-third of electric power T&D utility officials indicated in a survey that more than half of protective relays on their systems have been in service for more than 15 years. This is not such a long lifespan for EM relays, which can last 50 years or more, but for programmable, microprocessor relays the average lifespan is usually more in the ballpark of 20-25 years.

Newton-Evans Research Company has published findings from 97 surveyed electric power utility officials, relay manufacturers, suppliers and consultants. Here are a few observations on aging relays and testing intervals for microprocessor relays:
Continue reading One-Third of Electric Utilities Surveyed Indicate Over Half of Relays Have Been In Service for >15 Years

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69% of Electric Utilities Surveyed Separate OT Networks From IT Business Networks

A recent Newton-Evans survey of 55 North American electric utilities finds that companies are even more hesitant than they were in 2016 to combine networks for operational technology with networks used for IT business processes.

Survey participants were asked, “Does your company manage operational technology (OT) protection, control, and automation Ethernet networks separate from your information technology (IT) business process Ethernet networks?” This question is one of several that were asked previously on a 2016 survey of the protective relay marketplace.

In 2019, 69% percent of North American utilities responded that they manage OT networks separately from IT business process Ethernet networks. In 2016, 55% said they manage the networks separately.

Continue reading 69% of Electric Utilities Surveyed Separate OT Networks From IT Business Networks

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35% of Utilities Surveyed Said More Than Half Of Relays Are Over 15 Years in Service

Newton Evans Research Company has recently completed Volume 1 (the North American Market) of the Worldwide Study of the Protective Relay Marketplace: 2019-2022, a four volume market report. Here are a few observations gleaned from the survey:

Survey respondents were asked, “Approximately what % of your relays have been in service for more than 15 years? (Best guess estimate)”

On average, 44% of relays in the utilities surveyed have been in service for more than 15 years. The average percent of relays older than 15 years among Canadian utilities surveyed was 61%; the average among U.S. Cooperatives was 25%.
Continue reading 35% of Utilities Surveyed Said More Than Half Of Relays Are Over 15 Years in Service

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94% of North American Electric Utilities Surveyed Use DNP3 for SCADA

Newton Evans Research Company is currently surveying for the upcoming Worldwide Study of the Protective Relay Marketplace: 2019-2022, a four volume market report. Participants in this market study include utility engineers and managers from investor-owned utilities, municipal and provincial utilities, cooperative utilities within the United States and Canada, together with national power systems throughout the world. This year’s study also includes separate surveys of P&C consultants and relay manufacturers.

Interim findings from the survey of North American electric utilities validate earlier Newton Evans observations that DNP3 is more commonly used for SCADA but less so for Substation Automation, controlling actions issued externally to relays, and communications-assisted protection. Almost all North American utilities surveyed indicated the use of DNP3 for SCADA, while 60% said they use it for substation automation. Only 38% indicated the use of DNP3 for communications-assisted protection. Early tabulations have found some increase in deployments of IEC 61850.
Continue reading 94% of North American Electric Utilities Surveyed Use DNP3 for SCADA

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The U.S. Submersible Medium Voltage Switchgear Market

In an electric power system, submersible switchgear is the special combination of electrical disconnect switches, fuses or circuit breakers used to control, protect and isolate electrical equipment all enclosed in a “vault-like” casing to prevent flooding damage. Submersible switchgear is used both to de-energize equipment to allow work to be done and to clear faults downstream. This type of equipment is important because it operates in the same way as other forms of switchgear and is directly linked to the reliability of the electricity supply.

A variety of interrupting devices can be used with vaulted submersible switches including fuses, air circuit breaker, oil circuit breaker, vacuum circuit breaker or gas (SF6) circuit breaker.

Newton-Evans has estimated the 2017 U.S. market for submersible switchgear to have been about $140-$155 Million – and growing at about 5% per year, a rate somewhat higher than other MV market segments for electric power infrastructure equipment.
Continue reading The U.S. Submersible Medium Voltage Switchgear Market

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Global Study Finds Continuing Moderate Growth in Protective Relay Market with Commitment to Improving Protection Coordination and Grid Security Practices

In 2016, Newton-Evans Research Company completed a six-month research study and survey of protective relay usage patterns in the world community of electric power utilities. Findings from 114 large and mid-size utilities in 28 countries pointed to some newer trends in adoption and use of protection and control technology.

Among the key findings reported in the 2016 four-volume study were these:

  • There was a receptive market for incorporating advanced technological capabilities.
  • The role of synchrophasors and teleprotection continued to expand; providing better situational awareness and visualization for control system operators.
  • Most new and retrofit relay units being purchased were digital relays, but in some of the protection applications studied, such as motor protection and
  • large generator applications, and in installations where electrical interference is strong, electro-mechanical and older solid state relays continued to have a niche market position.

Continue reading Global Study Finds Continuing Moderate Growth in Protective Relay Market with Commitment to Improving Protection Coordination and Grid Security Practices

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Protective Relays and IT/OT Convergence: What Will Be Trending in 2019?

In 2016, Newton-Evans Research Company conducted a six-month research study of protective relay usage patterns in the world community of electric power utilities. Findings from 114 large and mid-size utilities in 28 countries pointed to some newer trends in adoption and use of protection and control technology. Newton-Evans Research Company plans to update this market study in January of 2019: Worldwide Study of the Protective Relay Marketplace: 2019-2022.

Here are some findings from the survey that was conducted in 2016, when we asked utilities how they collect IT information from OT networks:

Where do you provide demarcation between the physical IT and OT networks in order to safely collect IT information from the OT networks? (Check all that apply)
NORTH AMERICA: In 2016, just over half of North American respondents said the demarcation between physical IT and OT networks is at the control center, and 47% said demarcation is in the substation. Seven respondents said demarcation between the two networks is provided at both the control center and in the substation.

Continue reading Protective Relays and IT/OT Convergence: What Will Be Trending in 2019?

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Newton-Evans Study Finds Market for Relay-Centric Devices and Controls Expanding with Emergence and Growth of Newer Industry Segments

In 2016, Newton-Evans Research Company conducted a six-month research study of protective relay usage patterns in the world community of electric power utilities. Findings from 114 large and mid-size utilities in 28 countries pointed to some newer trends in adoption and use of protection and control technology.

Importance of Purchasing “Known” Relays: Sixty-five percent of the North American respondents strongly agreed with the statement, “It is important that we purchase known relays (a proven product with which we have had prior experience).” Overall, 97% of North American respondents strongly agreed (65%) or agreed (32%). Three people were neutral about this statement. None of the respondents expressed any level of disagreement. Eighty-two percent of North American utilities serving more than 500,000 electricity end users strongly agreed with this statement.

Fifty-three percent of international respondents strongly agreed with this statement. Forty-one percent agreed only somewhat. One person disagreed and one person was neutral about this statement.

Agree or Disagree: “It is important that we purchase known relays (a proven product with which we have had prior experience.)”

Continue reading Newton-Evans Study Finds Market for Relay-Centric Devices and Controls Expanding with Emergence and Growth of Newer Industry Segments

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Worldwide Study of the Protective Relay Marketplace in Electric Utilities: 2019-2022

Beginning early in January, Newton-Evans Research Company will again be gathering survey-based data for its newest four-volume market study, the Worldwide Study of the Protective Relay Marketplace: 2019-2022, planned for publication late 1st quarter 2019. Some of the questions this study will answer include: 1) Will IEC 61850-based protective relay products gain a higher market share among North American utilities? 2) Is there a change coming in protective relay market leadership? 3) With growing utility emphasis on DA, the integration of renewables, storage devices and demand-side management tools, will there be a need for additional protective relays in MV substations and embedded in a new generation of distributed field equipment?

The 2019 study will measure current market sizes and will include market projections on a world region basis for the next few years. The extensive research program will define the product and market requirements which suppliers must meet in order to successfully participate in one or more of these diverse world market regions.

Newton-Evans Research Company estimates from our earlier 2016 relay market study indicate that the North American protective relay market then stood at $660 million for the combined utility and industrial market segments. It will be important for the P&C community to learn how changes in the world market and grid modernization since 2016 will affect the outlook for 2019-2022.

Continue reading Worldwide Study of the Protective Relay Marketplace in Electric Utilities: 2019-2022

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North America Factory Shipments of Protective Relays Could Top $700 MUSD in 2018

A four-volume Newton-Evans study conducted in 2016 of the worldwide protective relay marketplace showed a steady increase in factory shipments of protective relays between 1996-2016. If this pattern continues, relay shipments could exceed $700 million by the end of this year.

Continue reading North America Factory Shipments of Protective Relays Could Top $700 MUSD in 2018

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Control Systems, Protective Relaying and Substation Automation Report Series Year-End Discount

Research findings from recently completed Newton-Evans studies see an upswing in cyber security investments worldwide, while substantial differences for communications protocols and methods are also evident. Order all 3 of Newton-Evans Research Company’s flagship studies on electric power control systems, substation automation and protective relays and save $9,800 off the initial retail price! Here is what is included:

Continue reading Control Systems, Protective Relaying and Substation Automation Report Series Year-End Discount