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Release of North American 2013-2015 EMS, SCADA, DMS and OMS Report – Now Available for Secure Online Purchase and Download!

EMS, SCADA, DMS and OMS Systems to be Significantly Upgraded or Replaced to Meet New Regulations and to Provide Improved Situational Awareness and Visualization Tools for Systems Operators

Role of Operational Analytics for Outage Management Growing Rapidly in Attempts to Improve Reliability and Minimize Outage Duration and Frequency

January 25, 2013.  Ellicott City, Maryland.  The Newton-Evans Research Company has released highlights of findings from its newly published study of EMS, SCADA, DMS and OMS usage patterns in North American electric power utilities, one of four component reports of the company’s 2013 global market assessment series on power delivery operational control systems.

Among the observations gleaned from interviews and surveys with more than 110 participants from a wide range of participating U.S. and Canadian electric utilities, are the following:

  • Plans call for upgrades or retrofits to EMS (energy management systems) and SCADA (supervisory control and data acquisition) systems among a large percentage of these utilities.  Related industry expenditures will likely increase by more than 25% over the next 24 months.
  • Plans for procurements of new DMS (distribution management systems) and OMS (Outage management systems) are significant, with more than one quarter planning to purchase a new or replacement DMS and nearly one-in-five planning OMS procurements.
  • Eighty percent of utility officials cited a need for cyber security features to be designed as an integral part of their control systems, not provided as an “add-on.”  Most officials also called for control systems integrators to do more to make NERC compliance and regulatory reporting easier and more automated.
  • Third party services are being used and relied upon to assist with NERC CIP compliance issues, for the conduct of vulnerability assessments and for consulting on smart grid topics.
  • DNP 3 continues to be the most prevalent operational data communications protocol throughout North American electric power utilities.  Plans call for continuing the use of DNP 3 for the foreseeable future, among the majority of these utilities.   Increased use of IEC 61850 for intra-substation communications has been reported in newly constructed transmission substations.

The North American report is one of four volumes of study completed for the company’s fourteenth bi-annual series of EMS, SCADA and DMS studies published by Newton-Evans Research since 1984.

Further information on this new series entitled The World Market Study of SCADA, Energy Management Systems and Distribution Management Systems in Electric Utilities:  2013-2015 is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit us at www.newton-evans.com  or to order any of more than 100 related reports.  For readers interested in purchasing this new series please call or email the company for special introductory pricing. Chuck Newton can be reached at cnewton@newton-evans.com.

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Preliminary Findings Point to Solid Growth for EMS, SCADA, DMS and OMS during 2013-2015 among North American Electric Power Utilities

Real-time Inter-systems Communications Capabilities Lag, but DNP 3 Continues as the Preferred Protocol for Operational Data Communications

December 1, 2012. Ellicott City, Maryland. The Newton-Evans Research Company has released interim findings from its current study of EMS, SCADA, DMS and OMS usage patterns in North American electric power utilities, one of four components of the company’s global market assessment series on operational control systems.

Among the initial observations gleaned from interviews and surveys with 50 initial participants from a wide range of participating U.S. and Canadian electric utilities, are the following:

  • Energy Management Systems (EMS), supervisory control systems (SCADA), distribution management systems (DMS) and outage management systems (OMS) are likely to show very good growth over the 2013-2015 years, in light of the positive responses from this initial group of utility responses.
  • Plans call for upgrades or retrofits to SCADA systems among a large percentage of these utilities
  • Plans for procurements of new DMS and (OMS) are significant, with more than one quarter planning to purchase a new or replacement DMS and nearly one-in-five planning OMS procurements.
  • There is interest shown among one-third of these early respondents to combining DMS and OMS on a common platform, but cyber security concerns have been voiced by several operations officials looking into such system combinations.
  • Third party services are being used and relied upon to assist with NERC CIP compliance issues and for the conduct of vulnerability assessments.
  • DNP 3 continues to be the most prevalent operational data communications protocol throughout North American electric power utilities. Plans call for continuing the use of DNP 3 for the foreseeable future, among the majority of these utilities.
  • More than a score of additional topics are surveyed in this new study including the impact of NERC CIP compliance on budgets and workloads; distribution network model maintenance; hardware maintenance responsibilities and preferences for new applications procurement methods.

The North American report is one of four volumes being produced for the company’s fourteenth bi- annual series of EMS, SCADA and DMS studies published by Newton-Evans Research since 1984. Work on the other three volumes is underway; the entire series will be published in January 2013.

Further information on this new series entitled The World Market Study of SCADA, Energy Management Systems and Distribution Management Systems in Electric Utilities: 2013-2015 is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit us at www.newton-evans.comor to order any of more than 100 related reports. For readers interested in purchasing this new series please call or email the company for special introductory pricing. Chuck Newton can be reached at cnewton@newton-evans.com.

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Newton-Evans Finds Major Electric Power Operations and Enterprise Software and Systems Sales in U.S. Now Exceeds $1.1 Billion

Three year growth from 2011 to 2014 projected at 26% for the entire group of ten key operational topics. Cyber Security Software Growth to outpace Other Topics in this series

November 12, 2012. Ellicott City, Maryland. The Newton-Evans Research Company has announced its publication of a set of 10 U.S. market summaries covering operational systems and software used by American electric power utilities. The newest series of market overview reports (executive two-page market summaries) includes supplier listings, representative products, and estimated market size for each topic, vendor market share estimates, and market outlook through 2014. For several topics, typical software and/or system cost ranges are also provided. Electric utilities accounted for more than 95% of all purchases of control-related systems and utility CIS software. Total 2011spending for the systems and packaged software included in this series exceeded $1.1 billion, with an even larger amount spent internally or with developers for custom development and maintenance of these systems and applications software packages.

The Control Systems series ($975.00) includes U.S. market size, market share estimates and market outlook for these ten topics: CS01 – EMS Systems Integration, CS02 – Distribution SCADA, CS03 – Geographic Information Systems, CS04 – Customer Information Systems, CS05 – Outage Management Systems, CS06 – Meter Data Management Systems. CS07 – Mobile Workforce Management Systems, CS08 – Advanced Distribution Automation, CS09 – Electric Power Market Management Systems and CS10 – Cyber Security Software for Control Systems

Other T&D topical series published this year by Newton-Evans Research are also available including: substation automation (13 market segment snapshots), power transformers (11 market segment snapshots), distribution automation (12 market segment snapshots), protective relays (8 market segment snapshots), high voltage equipment (15 market segment snapshots) and medium voltage equipment (20 market segment snapshots). Forty companies represent the majority of sales of products, systems and software covered in the series. This group of market overviews is the final series to be published in 2012. In total, 84 T&D-related equipment, software and services market segment overviews are available.

Total shipment values for the 84 components of the Newton-Evans U.S. T&D market overview series exceeded $15 Billion in 2011, and are projected to reach $18 Billion by 2014. The report summaries can be purchased online, either individually or by topical series. More than 200 suppliers are each represented in at least one report.

Further information on this new series of U.S. electric power transmission and distribution market snapshots is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit the specific Newton-Evans website page at http://www.newton-evans.com/wp-content/uploads/MktSummarySrs-2012-brochure.pdf for a brochure or to order any of the related report series or individual report summaries online. For those interested in subscriptions to multiple summary report series, please call or email us for special introductory pricing offers. Khristina Newton can be reached at knewton@newton-evans.com .

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NEMA features Newton-Evans Research Findings Article in “Economic Spotlight” for November 2012 Edition of Electroindustry Magazine

The article is entitled “An Overview of the U.S. Market For Transmission and Distribution Equipment and Systems” and was written exclusively for NEMA, the National Electrical Manufacturers’ Association. The article can be found here http://www.nxtbook.com/ygsreprints/NEMA/g29979_nema_ei_nov12/#/32. The timing of the article is coincidental with the release this week of the final portion of the Newton-Evans series of 90 brief market summaries on discrete infrastructure components of the nation’s transmission and distribution grid and supporting automation and control systems. The final group of market summaries covers the operational control systems and supporting enterprise systems used by electric utilities. The new series will be available on-line on November 9, 2012.

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Estimated U.S. Sales of HV Transmission Substation Equipment well over $5 Billion in 2011, (excluding power transformers) – Forecast to Increase by 19% to $6 Billion by 2014.

High Manufacturing Concentration Ratios Noted – Four Top Tier HV Equipment Manufacturers in Each Category Hold from 70%-95% Combined Shares

October 19, 2012. Ellicott City, Maryland. The Newton-Evans Research Company has announced its publication of a set of 15 U.S. high voltage equipment market two-page 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 through 2014. For many topics, equipment/system cost ranges are also provided. Electric utilities accounted for about 88-90% of all purchases of high voltage equipment, used mainly in transmission class electric power substations.

Unlike other categories in the series, the HV equipment market is characterized by a specialized group of manufacturers, resulting in a high degree of market shares held by these few companies. There are two manufacturing concentration ratios used by economists. The first, known as CR4 ratios, is a measure of U.S. market dominance in the hands of four suppliers/manufacturers. The second calculation is the CR8, a measure of U.S. market dominance among up to eight leading manufacturers.

For each high voltage equipment category, Newton-Evans has found that more than 70% of each of the covered HV equipment markets is shared by four or fewer companies. The CR8 ratio found in this study indicates that the market share for eight suppliers (or fewer) is nearly 100% in each category, as calculated by Newton-Evans Research. This is different from other T&D categories studied this year, wherein significantly lower concentration ratios are found at the CR4 level.

The High Voltage Equipment series ($975.00) includes U.S. market size, market share estimates and market outlook for these 15 HV equipment categories: HV01 – FACTS and RPC, HV02 – HVDC, HV03 – Air Insulated Substations, HV04 – Gas Insulated Substations, HV05 – Air Insulated Switchgear, HV06 – Gas Insulated Switchgear, HV07 – High Voltage Bushings, HV08 – High Voltage Capacitors, HV09 – High Voltage Circuit Breakers, HV10 – HV Disconnect Switches, HV11 – High Voltage Circuit Switchers, HV12 – HV Instrument Transformers, HV13 – Air Core Reactors, HV14 – HV Surge Arrestors, HV15 – Specialized Generator Circuit Breakers.

Other topical series published this year by Newton-Evans Research are also available including: substation automation (13 market segment snapshots), power transformers (11 market segment snapshots), distribution automation (12 market segment snapshots), protective relays (8 market segment snapshots), and medium voltage equipment (20 market overviews). The final series to be released in November will cover a range of T&D control systems (11 market segment overviews).

Further information on this new series of more than 90 U.S. electric power transmission and distribution market snapshots is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit www.newton-evans.com for a brochure or to order any of the related report series or individual report summaries online. For those interested in subscriptions to multiple report series, please call or email us for special introductory pricing offers. Khristina Newton can be reached at knewton@newton-evans.com.

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October Update to The Newton-Evans Outlook for Electric Utility Procurements Over 2013-2015

On June 25, and again on August 1, 2012, we published articles on our view of the global economic outlook and its effect on spending for electric power infrastructure and automation. We have now completed an early fourth quarter review of economic and financial conditions based on external resources such as the World Bank. As a result, we continue to retain a cautiously optimistic view for most smart grid market segments. We reported quite accurately on these developments in the mid-2011 Newton-Evans study (Smart Grid: A Reality Check) and again at mid-year this year for these developments:

  • • Slowdown in China
  • • Critical financial and economic issues facing the Eurozone
  • • Minimal growth in Western Europe outside of the Eurozone
  • • Retrenchment in economic outlook for the United States (as it remains the single largest country market in the world).
  • • World Bank and NGO outlook that suggested continuation of low growth.

At this time, we need to add three more specific concerns to this list:

  • • Concerns with Regional Stability in the Middle Eastern nations:
  • • Slowdown in Growth Projections for other East Asia Countries- in addition to China
  • • Inaction by the U.S. Congress on Fiscal and Energy Policy Matters

Concerns with the Middle East

The ongoing tension in some of the Middle Eastern nations is disruptive in and of itself and could have negative effects on infrastructure investment throughout the entire region. There has been some pullback in previously announced plans to procure hundreds of millions of dollars of systems, equipment, power stations and substation projects in countries with political instability at this time. While still relatively minor, such project deferrals reflect both the growing regional concerns over Iran and Syria, and the still unsettled issues in Libya, Iraq and Afghanistan. The World Bank’s most recent outlook for the region suggests further retrenchment to earlier GDP growth forecasts.

Slowdown in China and East Asia in General

Secondly, East Asian GDP growth rate forecasts have again been cut by the World Bank, as recently as October 7. World Bank officials now anticipate that economic growth in Asia will be 7.2% in 2012, down from the 7.6% projection made in May and lower than last year’s rate of 8.2%. However, growth is expected to rebound next year, spurred by strong demand in developing countries. Some countries, including Vietnam and Mongolia, are outpacing others in their electricity infrastructure modernization investments this year. For 2013, a good bit of the reliability of the outlook will also depend on some sort of rebound in exports of Asian goods and services to the Eurozone countries and to North America.

Inaction by the U.S. Congress

Thirdly, the ongoing failure of the United States Congress to enact both sane fiscal policy measures and a cohesive long term energy policy could become a further drag on the region’s outlook, with little time remaining for the Congress to act before automatic federal spending cuts take effect. If no budget agreements are reached by the end of 2012, this in itself will have an important negative effect on planned electric power industry expenditures during 2013 by at least some of the major investor-owned utilities, and an even more important negative effect on public utilities. In turn this will cause a CAPEX decrease similar to the falloff in 2009 and 2010 from the devastating 2008 financial crisis.

It’s Not All Bad News

On the positive side, sub-Saharan African countries continue to make very good progress with the regional GDP up over six percent again to date in 2012. Regional investments in electric power plant construction, transmission and distribution infrastructure and the addition of millions of new electricity customers over the 2010-2012 period auger well for further near-term and mid-term growth, despite some regional political issues, and in spite of the pessimistic outlook in some other global regions. However, the price-based concerns of these developing nations will favor lower-cost, faster-delivery Asian exporters over some Western companies whose emphasis is on equipment quality and reliability.

“A third of African countries will grow at or above 6 percent with some of the fastest growing ones buoyed by new mineral exports and by factors such as the return to peace in Côte d’Ivoire, as well as strong growth in countries such as Ethiopia,” said World Bank Vice-President for Africa, Makhtar Diop. “An important indicator of how Africa is on the move is that investor interest in the region remains strong, with $31 billion in foreign direct investment flows expected this year, despite difficult global conditions.” Newton-Evans believes that at least several billions of these dollars are flowing into electric power infrastructure and automation projects in the sub-Saharan region.

Latin America – Still Growing

Growth for the Latin America and the Caribbean region was projected at mid-year by the World Bank to slow to 3.5 percent for the full 12 months of 2012, down from 4.3 percent in 2011. Improved financial conditions and growth outside the region “…should contribute to a modest acceleration of growth to 4.1 percent in 2013 before easing modestly in 2014” according to the World Bank. Nonetheless, electric power industry expenditures for the region have continued to be relatively strong over the past 36 months, as reported to Newton-Evans by major manufacturers for the company’s Smart Grid “Reality Check” market studies.

Overall, we see no reason yet to dramatically change our overall outlook for smart grid expenditures or for infrastructure CAPEX spending over the coming 24 months. Western nations likely will continue their investments in smart grid programs with annual growth in such investments hovering in the mid-upper single digits. For the developing nations of the Southern Hemisphere and a good portion of Asia, smart grid investment will likely be even higher, perhaps growing as much as 10-12% over the same period.

New Studies Underway

Newton-Evans Research will again conduct its year-end survey of industry manufacturers and systems integration firms concerning their views of the global outlook (by region) during the fourth quarter. This will supplement our findings from dozens of countries regarding their plans for large operational control systems (2013-2015 World Market for EMS, SCADA and DMS) and our fourth study on utility CAPEX covering the 2013-2014 outlook period (Global CAPEX and O&M Expenditure Outlook for Electric Power T&D Investments: 2013-2014). Once these studies are completed, we will update our outlook for the upcoming periods for our readers at the beginning of the New Year and in our next MARKET TRENDS DIGEST edition.

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Newton-Evans Research Releases Nine Market Snapshot Reports on Distribution Automation Topics Covering the Electric Power Industry in the United States

Estimated U.S. Sales of Distribution Automation Components, Including Equipment and Services, Accounted for more than $500 Million in 2011, Forecast to Increase to $704 Million by 2014.

August 1, 2012. Ellicott City, Maryland. The Newton-Evans Research Company has announced its publication of a set of nine U.S. distribution automation market two-page 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 through 2014. Electric utilities accounted for about 87% of all purchases of distribution automation related goods and services. A majority of distribution automation equipment purchased by American utilities and industrial firms currently is produced in the United States.

The Distribution Automation series ($975.00 for all report summaries or $150.00 per individual report summary) includes U.S. market size, market share estimates and market outlook for these 9 DA product and service categories: DA01 – Automatic Circuit Recloser Controls; DA02 – DA/DMS System Components (including distribution network analysis; distribution network condition monitoring and fault location and characterization) ; DA03 – Voltage Regulators; DA04 – Capacitor Bank Controllers; DA05 – Fault Indicators (covering both fault current indicators and faulted circuit indicators); DA06 – Pole Top RTUs; DA07 – Line Mounted Monitoring Devices; DA08 – Communications Components for DA (covering PLC/DLC; cellular and 900Mhz); and, DA09 – Engineering Services for Distribution Automation Projects (covering consulting engineering services, related services provided by manufacturers; DA services provided by smart grid consulting specialists).

Other topical series currently available include: substation automation (13 market segment snapshots), power transformers (11 market segment snapshots), protective relays (8 market segment snapshots), and medium voltage equipment (20 market overviews). The final two series to be released later in August cover high voltage equipment market summaries (16 market segment overviews) and T&D control systems (11 market segment overviews).

Further information on this new 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 order any of the related report series or more than 90 planned individual report summaries online. For those interested in subscriptions to multiple report series, please call or email us for special introductory pricing offers. Khristina Newton can be reached at knewton@newton-evans.com.

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U.S. Sales of Medium Voltage Equipment, Components and Related Services Accounted for More than $10 Billion in 2011, Forecast to Increase to $11.5 Billion in 2014.

Newton-Evans Research Publishes Set of U.S. Electric Power T&D Market Summaries for 18 specific medium voltage distribution equipment categories.

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, estimated market size for each topic, vendor market share estimates, and a market outlook through 2014. Electric utilities accounted for nearly two-thirds of purchases of the medium voltage product categories in this series. A majority of the included equipment and products were produced in the United States.

The Medium Voltage equipment series is priced at $1,500 for all 18 market summary reports, or at $150.00 for individual report summaries. Each snapshot report include estimates of U.S. market size, supplier market share and outlook through 2014 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
MV18 – Surge Arresters.

Other U.S. T&D market snapshot series currently available include power transformers (11 market segment snapshots), protective relays (8 market segment snapshots) and substation automation components (13 market segment snapshots). The next series to be released covers Distribution Automation in 12 market summaries, and is planned for publication later in July, 2012.

Click Here for a brochure or to place an order for any of the related report series or more than 50 currently available 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 info@newton-evans.com

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Looking at Smart Grid Opportunities for Growth at Mid-Year 2012 ….What stands in the Way?

Why we believe the near-term investment priority for utilities of all types must be cyber security-related!

(Security is not always considered part of smart grid spending)!

First and foremost what stands in the way of more significant growth in smart grid-related investment is the state of the global economy. It isn’t totally doom and gloom, but then…. currently, all eyes are on Western Europe, and on the harbingers for economic growth or lack thereof, in North America, the slowdown in China and other parts of Asia. In mid-2011, we took a relatively cautious view of the outlook for smart grid investments, as many utilities simply could not afford to make significant investments then or now.

Our mid-2011 research series entitled The Worldwide Smart Grid Market in 2011: A Reality Check and Five Year Outlook Through 2015 was well received by key, clear-headed market participants and other observers of the smart grid marketplace, even though we had suggested that real growth in smart grid would be spaced out over many years, and overall smart grid market investments would grow only in the mid-upper single digits (on average) each year.

Well, let’s take a look at what is happening around the world that causes Newton-Evans to continue to retain a cautiously optimistic view of most smart grid market segments. We reported quite accurately on these likely developments in that mid-2011 study:

  • Slowdown in China
  • Critical financial and economic issues facing the Eurozone
  • Minimal growth in Western Europe outside of the Eurozone
  • Retrenchment in economic outlook for the United States (as it remains the single largest country market in the world).
  • World Bank and NGO outlook that suggested continuation of low growth.

A few weeks back, there were some trade press headlines suggesting (incorrectly) that the smart grid was approaching umpteen billion dollars. To put much faith in that fairy tale of a report summary would be dangerous and misleading, as others have also stated. The true global market for all segments of smart grid activity (not counting infrastructure) relating to transmission, distribution, and consumer premises activities (AMI, DR, and the like), currently amounts to about 5% of that rose-colored glass outlook, or about $10 billion USD in our considered view. This amount includes all spending for control center systems, automation programs for substations and distribution networks, smart devices to monitor transmission activities, demand response and advanced metering infrastructure. This amount also includes all relevant operational software required to manage the data acquisition and analysis of real-time and historical data.

Certainly, unless the nation and the world lose the little positive economic momentum we now enjoy, there will very likely be a continuation of the mid-to-upper single digit growth rate overall for smart grid activities during the remainder of 2012 and through 2013. Some activities will grow faster (like DA), while others remain sluggish. Much hinges on the various steps being considered or enacted by regulatory and legislative bodies in countries around the world. A high percentage of these deliberations will consider the overall economic effects that such decisions will have on utilities and consumers of all types. Some major utilities will continue to forge ahead, as the daily webinars indicate they are doing. However, it is a rather small group of utilities that currently accounts for a very high proportion of smart grid spending, not just in North America, but globally. The majority of others are still either taking a “wait and see” attitude or hoping that their coffers will soon show more profitability that will enable those companies to make significant investments in one or multiple smart grid segments.

I am a believer that a lot of “wannabe” smart grid investments are being diverted, or will very soon have to be diverted, to better protecting utility IT and operational cyber assets, and this simply will take precedence over the requirements to upgrade equipment, smarten up field monitoring and control devices, revamp communications network architecture and re-energize the electric power grid itself.

This year, Newton-Evans Research has already undertaken a number of national and international studies of cybersecurity issues, and the findings lead us to believe that the single most critical issue facing utilities of all types is the near-term requirement to shore up cyber defenses, policies and procedures. Unfortunately, these cyber security investments will likely continue to usurp funding from other smart grid activities, but this investment must be a priority, in my opinion.

Keep in mind the first priority of every electric power utility – “keeping the lights on” means protecting the system at all costs. Thus, improving system protection and control procedures together with strengthening cyber defenses may well be the key aspects of smart grid development in the near term. We are “robbing Peter to pay Paul” in some real sense, but this is probably a very judicious way to invest for the remainder of 2012, based on what the “surveys say” at this time.

# # #

P.S. Looking for an opportunity to share in our findings? Join your colleagues in the power industry who have benefited from a full year of having accurate descriptions of the smart grid market and its constituent sub-markets. If you haven’t already subscribed to The Worldwide Smart Grid Market in 2011: A Reality Check and Five Year Outlook Through 2015 this would be a great time to do so. (See the reports page to order (http://www.newton-evans.com/reports/). Keep in mind that we will send the mid-2012 update with our compliments – at no extra charge – as soon as it is available.

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U.S. Sales of Substation Automation Components and Related Services Accounted for $1.2 Billion in 2011, Forecast to Increase to $1.8 Billion in 2014.

Newton-Evans Research Publishes Set of U.S. Electric Power T&D Market Summaries for 13 specific substation automation equipment categories.

June 18, 2012. Ellicott City, Maryland. The Newton-Evans Research Company has announced the publication of a series of 13 electric power T&D substation automation market two-page snapshot 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 through 2014. Electric utilities accounted for about 80% of purchases of the substation automation product categories. A majority of the substation automation components and relay products were produced in the United States. Digital protective relays accounted for about 40% of all substation automation spending in the U.S. market in 2011.

The Substation Automation series is priced at $975 for all 13 market summary reports, or at $150.00 for individual report summaries. Each snapshot report include estimates of U.S. market size, supplier market share and outlook through 2014 for these substation automation-related product/service categories: SA01 – Remote Terminal Units; SA02 – Programmable Logic controllers; SA03 – Substation Automation Platforms; SA04 – Multifunction Meters and Recorders; SA05 – Inter-Utility Revenue Meters; SA06 – Digital Relays; SA07 – Digital Fault Recorders; SA08 – Sequence of Events Recorders; SA09 – Power Quality Recorders; SA10 – Substation Reclosers; SA11 – Substation Automation Integration Specialists; SA12 – Substation Communications; and SA13 – Substation Voltage Regulation Equipment.

Other T&D market snapshot series currently available include power transformers (11 market segment snapshots) and protective relays (8 market segment snapshots). The upcoming series of medium voltage equipment market summaries is planned for publication later in June, 2012.

Further information on this new 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 order any of the related report series or more than 90 planned individual report summaries online. For subscriptions to all three of the currently available report series, please call or email us for special introductory pricing offers. Khristina Newton can be reached at knewton@newton-evans.com.

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Estimated U.S. Sales of Power and Distribution Transformers Accounted for $4 Billion in 2011, Forecast to Increase to $4.7 Billion in 2014.

Newton-Evans Research Publishes Eleven Market Snapshot Reports on Power Transformer Industry in the United States

June 8, 2012. Ellicott City, Maryland. The Newton-Evans Research Company has announced its publication of a set of 11 U.S. transformer market two-page 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 through 2014. Electric utilities accounted for about 88% of purchases of small, medium and large power transformers and distribution transformers.

A majority of both power transformers and distribution transformers were produced in the United States. Distribution transformers (wet and dry types) accounted for about 50% of all transformer shipment values in the U.S. market in 2011, in spite of the low level of new residential and small commercial construction. Fewer very large power transformers now are imported, thanks to the U.S. siting of transformer production facilities by several major manufacturers over the past few years.

The Power Transformer series ($975.00) includes U.S. market size, market share estimates and market outlook for these 11 transformer-related product and service categories: TX01 – Mobile Transformers; TX02 – Medium Power Transformers; TX03 – Medium-Large Power Transformers; TX04 – Large Power Transformers; TX05 – Very Large Power Transformers; TX06 – Shunt Reactors; TX07 – Special Transformers (Arc, Furnace); TX08 – Distribution Transformers (OH, Oil, 5kva+); TX09 – Distribution Transformers (Dry Type); TX10 – Transformer Life Management Services; and TX11 – Transformer Monitoring & Diagnostics.

Other topical series currently available include substation automation (13 market segment snapshots) and protective relays (8 market segment snapshots). Upcoming series to be released include medium voltage equipment (20 summaries) and high voltage equipment market summaries (16 summaries. Both of these series are planned for publication later in June, 2012.

Further information on this new 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 order any of the related report series or more than 90 planned individual report summaries online. For those interested in subscriptions to multiple report series, please call or email us for special introductory pricing offers. Khristina Newton can be reached at knewton@newton-evans.com.

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ABB and Tropos Networks: Adding Another Company to ABB’s Basket of Smart Grid “Goodies” alongside the Thomas & Betts and Ventyx Acquisitions

The brief ABB announcement of June 1, coupled with Tropos Networks CEO’s note to friends of the company on June 4, highlight this new acquisition achievement on the part of ABB’s strategic planning groups based in Switzerland (and Germany, and Sweden, and the U.S.A.).

Some readers may not be aware that ABB is a key global player in the utility telecommunications field, winning contracts annually worth hundreds of millions of dollars with its own extensive communications equipment offerings, and supplemented by one of the world’s largest telecommunications network design and development service organizations.

Internationally, many countries outsource the design and development/upgrading of telecommunications networks across the energy spectrum. This is especially true for the developing regions of the world. Key participants in this billion dollar-plus marketplace include the global control systems companies such as Siemens and Alstom Grid, along with ABB. Other key participants in energy telecommunications network development include Alcatel, DIMA, RFL, Selta and Telvent.

Let’s take a closer look at this key ABB acquisition. First, keep in mind that one of the few “gaps” remaining in ABB’s rather pervasive communications offerings is wireless mesh technology. This gap is found in the wireless mesh portion of Tier Two network requirements, and may well extend to “Tier Three” level of utility/energy telecommunications – the field area networks required for distribution automation (not to the NAN or to the meter). ABB has a long and successful history of providing telecommunications systems for Tier One (backbone network infrastructure) and much of Tier Two (backhaul) networks for utilities and energy companies around the world, mainly outside of North America. This opens many doors to ABB clients who have worked with the company in the development of the first two tiers, and who are preparing for additions to Tier Two and work on Tier Three network development. See the chart below.

(c) 2012 by Newton-Evans Research Company

 

ABB is a highly regarded telecommunications equipment manufacturer (or OEM buyer) in just about every other communications technology area that impacts energy and manufacturing industries, including multiplexing, teleprotection, local area network switches, power line carrier equipment, microwave systems and voice communications. Its wide ranging “Fox-family” product offerings have played a key role in its success in energy telecommunications. ABB engineering skillsets and capabilities can be found in radio, microwave, telephony, fiber (SONET and SDH), BPL and PLC technologies.

Tropos Networks, a 12 year-old privately-held Silicon Valley firm, has grown from start-up status to leader, and an international market participant, in the growing market for wireless mesh technology to support smart grid initiatives, (especially for advanced metering infrastructure, and to some extent for distribution automation) and has a leading position in the provision of municipal/metro area broadband services.  The company has shipped some 60,000 routers to more than 850 customers in 50+ countries to date.

However, reading between the lines of this important acquisition, in addition to gaining wireless mesh products, the synergistic benefits accruing to ABB also include the small but strong engineering and support services staff of Tropos Networks, which now will be able to tackle assignments yet to be won by ABB that are further afield from its North American roots. This service capability supplements the company’s highly touted line of wireless mesh equipment. Tropos Networks products and services will also gain a market position in the gas/oil pipeline business and in certain industrial and mining applications where wireless mesh technology can be used as an adjunct with other specialized ABB-developed communications approaches. Freshen up those passports, Tropos staff!

The recent Newton-Evans publication “Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry: 2011-2015” may be a valuable resource in your company’s plans for the upcoming re-development of grid telecommunications infrastructure. Interested readers can download a brochure and excerpts from this report series on our “reports” tab at www.newton-evans.com .

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Eaton Corporation Buying Cooper Industries: Cleveland meets Houston (via Maynooth, Ireland): and, more to the point for the Electric Power Community, Pittsburgh meets Waukesha

Looking Ahead to The Likely Impact on the Electric Power Industry
On May 21, 2012, Eaton Corp. formally concluded an agreement to purchase Cooper Industries PLC in a cash-and-stock deal valued at more than $11 billion. The combined power-related operations will provide a significantly expanded market position in some key growth areas of the worldwide electrical power and distribution industry and positions the combined business entity as a key participant in the evolving “smart grid” marketplace. Together, these firms earned $21.5 billion in 2011 revenue.

The deal, as publicly announced, would create a company (to be known as Eaton Global PLC) that manufactures products and provides a range of power-related services for a wide range of electrical uses, from power grids and lighting to electrical, hydraulic and transmission systems for vehicles, the aerospace industry and the military.

This combined revenue base of $21.5 billion is larger than that of some other major players in the electric power industry (such as Alstom Grid) but is short of global leaders like ABB ($38B), GE ($45 B), Schneider Electric ($29 B) and Siemens ($36B). However, when one takes away the “power generation” revenues of ABB, GE and Siemens, the revenue differences shrink considerably. On the other hand, some units of Eaton Global are themselves only tangentially involved in the electric power industry.

The new company is likely to be called Eaton Global Corp. PLC, planned to be incorporated in Ireland and headed by Eaton Chairman and CEO Alexander Cutler. The deal will first need shareholder approvals at both companies and acceptance by the Irish High Court. The deal is expected to conclude in the fourth quarter (late Autumn) of 2012.

Interesting times indeed! A quick review of Eaton’s Electric Distribution and Control business in North America (and Eaton Electrical internationally) together with a review of the Cooper Power Systems offerings leads us to believe the following:

  • Point One: Cooper is a leader in T&D infrastructure and first level smart grid (non-metering), and in several low voltage areas (lighting, small load management) while Eaton is a very strong player in the middle area (commercial and industrial enterprises, some utility-derived revenues and some residential market revenues). In the oil/gas energy field, it would be analogous to stating that Cooper is active in the upstream and downstream aspects of the business, while Eaton is a mainstay in the midstream arena.
  • Point Two: The Eaton C-H line of protective relays will benefit with the inclusion of Cooper Power’s Edison line of digital relays.
  • Point Three: Together, both companies’ lines of protective relays will move them to a combined revenue position behind SEL, GE and ABB, moving up on Basler, ahead of Beckwith and others.

Here are Newton-Evans’ first impressions of how the competitive landscape will likely be changing with the synergistic effects of this combined corporate entity:

Protective Relays
Effect on Eaton Global: The new company will benefit from combined offerings (complementary)
Effect on the Industry: The combined operations will move the new company into fifth place in North American market shares.

Automation and Control Products
Effect on Eaton Global: Positive effect on new company’s “smart grid” market position and market perception.
Effect on the Industry: Provides solid array of offerings vis-à-vis GE, ABB, Siemens, Schneider.

Circuit Protection
Effect on Eaton Global: The positive and complementary offerings of Eaton Electrical and Cooper Bussman will help the new company grow its position.
Effect on the Industry: Most likely Schneider will see increased competitive thrust around the world.

PQ Monitoring
Effect on Eaton Global: Will be viewed as a true international provider of power quality monitoring, moving up on the global stage in this industry segment.
Effect on the Industry: Likely competitive impact on mid-size firms active in PQ market. (Megger, Dranetz, Power Monitors and several others).

T&D and Power Related Services
Effect on Eaton Global: A truly wide-ranging combined offering from T&D services to industrial, commercial and even residential power-related services.
Effect on the Industry: Will not “steal” shares from others as much as help the total services market (capacity) domestically and internationally. Will still gain competitively vis-a-vis less well rounded offerings of other global services providers.

Cooper Industries
Founded: 1833
Number of Employees: 31,000
Annual Revenue: $5.4 Billion (Cooper Industries), $1.3 Billion (Cooper Power Systems)

o Cooper Power Systems has been meeting electrical distribution needs since 1985, and the companies that make up Cooper have been serving the industry even longer. These companies include: McGraw-Edison, RTE, Kearney, Edison, Combined Technologies, Kyle, Lin Material, McGraw, and Electromanufacturas, SA (Mexico).

o These Cooper Power subsidiary companies helped shape modern electrical distribution systems with advances in overcurrent and overvoltage protection, switchgear, underground distribution, and other product developments.

o Protective Relay Products and Services
Cooper Power Systems manufactures a wide range of medium and high voltage electrical equipment, components and systems for the utility and industrial markets. Used in substations, overhead, underground and in-plant medium voltage distribution systems, the products include:

o Single and three-phase overhead and pad-mounted transformers, substation transformers, power capacitors and controls, voltage regulators and controls, reclosers, pad-mounted switchgear, air-break switches, vacuum switches, sectionalizers, fault interrupters, current-limiting fuses, surge arresters, cable connectors and accessories, transformers components, line construction materials, tools and grounding equipment, faulted circuit indicators, protective relays, SCADA system software, distribution automation equipment, power systems analysis software, and system studies and event measurement services.

In 1998, the company introduced the NOVA solid insulation reclosers and the STAR faulted circuit indicator. In 1999, Cooper introduced the Pathfinder faulted circuit indicator and high firepoint dielectric fluid.

Edison Relays
The Edison line of relays is comprised of 18 compact, draw-out relays which are identical in appearance and operation. Edison relays are designed with ease of use in mind. Offering state of the art performance, all Edison relays feature an easy to use front panel interface that will have you up and running in minutes, rather than hours or days as with most other relays. And since all relays share the same interface, the knowledge you gain from using one relay is transportable to every other relay in the line. All Edison relays feature Modbus communications for easily interfacing to SCADA or automation systems.

DIN Rail Mount Relays
Cooper also offers three very compact, powerful, and economical DIN rail mount relays covering overcurrent and motor applications.

Eaton Corporation Company Overview
Founded: 1911
Sales (2011): $16.1 billion
# of employees: 73,000

Eaton Corporation is a diversified power management company and a global technology leader in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has approximately 75,000 employees and sells products to customers in more than 150 countries. For more information, visit www.eaton.com.

Protective Relay Products and Services
Control and automation equipment include contactors and motor starters, variable speed drives, photoelectric and proximity sensors, PanelMate video control panels, microprocessor-based control and protection devices, as well as pushbuttons and switches, all designed to enhance factory performance.

Power distribution equipment includes a family of circuit breakers, ranging from miniature breakers rated from 120 volts up to world-class vacuum breakers rated up to 38 kilovolts. Other products of this division include integrated facility systems, LV circuit breakers, panel boards, power management, surge protection, switchboards and transfer switches.

The company’s power management protection relays include:
MP3000 Motor Protection Relay – Advanced microprocessor-based motor protection relay that is easy to set up and use. It monitors, controls and protects three-phase induction motors of any size or voltage level against overload, thermal damage to rotor or stator, electrical faults, and excessive starting, and many process equipment failures.

MP4000 Motor Protection Relay- MP-4000 motor protection relay combines all the features required to ensure protection, fault diagnostics, power metering and communication for induction and synchronous motors. The MP-4000 expands upon industry-leading protection, control and diagnostics found in the MP-3000 by adding voltage inputs from Voltage Transformers (VT).

MD3000 Differential Relay- Stand alone self balanced differential protection for critical motors and generators.

DT3000 Feeder Protection Relay – Three phase and ground microprocessor-based overcurrent protection suitable for medium voltage feeder applications, detect and protect against overcurrent faults using ANSI, IEC and thermal curves, with zone interlocking to give you the flexibility to protect your bus without having to add additional CTs.

FP4000 Feeder Protection Relay – Multifunctional microprocessor-based feeder relay with complete current and voltage protection, metering, control and communications in a fixed case package. Multiple setting groups to reduce arc flash energy and zone selective interlocking for bus protection, without having to add additional CTs or relays. Its programming capabilities make it ideal for transfer schemes.

FP5000 Feeder Protection Relay – Multifunctional microprocessor-based feeder relay with complete protection, metering, control and communications in a fixed case or draw-out package. Multiple setting groups to reduce arc flash energy and zone selective interlocking for bus protection, without having to add additional CTs or relays. Its programming capabilities make it ideal for transfer schemes.

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ConnectivityWeek 2012 Gathers 100+ Speakers Defining the Energy 2.0 Market

ConnectivityWeek 2012 to bring in more than 100 top speakers from utilities, technology, government and energy consumption.

Top keynote speakers include United States Chief Technology Officer, California Public Utility Commissioner, Assistant Secretary of the Department of Energy, Senior Vice President (SVP) and Chief Information Officer (CIO) of Pacific Gas and Electric (PG&E), and more, to help define market for Energy 2.0.

ConnectivityWeek 2012 is gathering top speakers representing utilities, energy consumers, government and technology players to spark the dialogue that will help define the market for Energy 2.0, May 22-24, 2012, in Santa Clara, Calif.

Kicking off the conference as part of the May 22 opening Green Button plenary are Chief Technology Officer (CTO) of the U.S.A. Todd Park and California Public Utility Commissioner Catherine Sandoval.

Following this Green Button-focused plenary, the U.S. Department of Energy (DOE) Assistant Secretary Pat Hoffman will announce winners of the highly anticipated “Apps for Energy” contest, which has been put together by the DOE and its partners: Grid 21, Itron and PG&E. Hoffman will be joined onstage by Karen Austin, SVP and CIO of PG&E; Bill Reichert, Managing Director of Garage Technology Ventures; and more.

The breadth of speakers at ConnectivityWeek 2012 comprise the Energy 2.0 landscape and include representatives from energy supply, technology, electricity consumption verticals, and government
Where and When

ConnectivityWeek 2012 will take place May 22-24, 2012 at the Santa Clara Convention Center in Santa Clara, CA.

For more information on this conference visit www.connectivityweek.com/2012/

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2012-2014 Protection and Control Study Released after Five Months of Intensive Research

Findings from Newton-Evans Study of Protective Relay Uses and Trends in the World’s Electric Power Utilities Depict a Receptive Market for Incorporating Advanced Technological Capabilities

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

 Role of Synchrophasors and Teleprotection Continues to Grow…Providing Better Situational Awareness and Visualization to Help Prevent Outages

April 12, 2012 Ellicott City, Maryland. Newton-Evans Research Company has completed a five-month research study and survey of protective relay usage patterns in the world community of electric power utilities. Findings from more than 100 North American and international utilities, point to some new trends in adoption and use of protection and control techniques.

Among the key findings reported in the four volume study are these:

  •  The percentage of digital relays in the mix of all protective relays used by utilities continues to increase.
  •  The vast majority of new and retrofit units being purchased are also 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, electromechanical and older solid state relays continue to have a niche market position.
  •  The annual world market for protective relays and related power systems protection devices continues to grow at a healthy pace.
  •  Manufacturers of utility systems protection equipment continue to expand their market coverage, with more than 20 firms each enjoying at least some share of the global market.
  •  Real-time analysis of synchrophasor data will become a major application for the emerging field of operational analytics.
  •  Communications protocol usage patterns continue to serve as a differentiator between the majority of large and mid-size North American utilities and their international counterparts.

The Newton-Evans survey of electric utilities included more than 20 detailed product functionality, related technical questions, and market-related issues, together incorporating more than 250 items of information from each of the participating utilities.

The 2012-2014 study is a series of four reports published this month. 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: 2012-2014 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 or to order the report series online. Liz Forrest can be reached at eforrest@newton-evans.com .

 

 

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New Substation Automation U.S. Market Overview Reports

The Market Summary Series for Substation Automation is now available for purchase (see our reports page). These reports are an effective, low-cost approach for management to quickly obtain an assessment and overview of key attributes of each industry segment, including 2011 estimates of U.S. market size for utilities (by type) and for industrials; key players, and the near-term outlook for the segment.

Each report includes definitions of what is included in the segment, lists of market participants and their estimated 2011 revenue, a market share assessment (pie chart), 2011 market size range estimates, history and outlook of estimated spending changes out to 2014.

These 2-page summary reports are available for $195 each, or get all 13 Substation Automation reports in one .pdf document for $975. View our reports page for more details.

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Initial Take on the January 30, 2012 ABB Acquisition of Thomas & Betts

ABB now “Walking in Memphis” with Thomas & Betts, after singing “Georgia on My Mind” with its 2010 purchase of Ventyx and the “Song of Arkansas” for its 2011 acquisition of Baldor Electric.

After ABB’s May 2010 acquisition of Ventyx that now appears to have strengthened its hand somewhat in the control center-based systems market for EMS, SCADA and DMS  (see www.newton-evans.com/?p=646 ), and the company’s follow-on purchase of Baldor Electric Company (Fort Smith, Arkansas), a leader in electric motor manufacturing, ABB has now announced its intent to acquire Thomas & Betts.  T&B is a leading supplier of low voltage gear, and a respectable share participant (via its own recent acquisition of Joslyn Hi Voltage) in the market for medium voltage switchgear.  Among its products serving the utility and construction markets are: digital static transfer switches, integrated systems – dual feed & static switch PDUs, power distribution systems, circuit management, industrial UPS, surge protection devices and power quality services are among its MV/LV products.

Joslyn Hi-Voltage manufactures power transmission and distribution equipment for electric utilities. The company’s offerings include reclosers, sectionalizers, capacitor switches and controls, transfer switches,  distribution automation equipment, disconnect switches, load break switches, underground switches, and VacStat vacuum interrupter monitors.  Fisher Pierce distribution products manufactured by Joslyn Hi-Voltage include Powerflex and AutoCap capacitor controls and Smartset software, faulted circuit indicators (FCIs), line post current sensors, and Smartlink communications.

So, what’s behind the spate of U.S. acquisitions made by ABB over the past 24 months?  Here are four solid reasons that we think support ABB’s strategic and decisive actions:

First, the strategic planners within ABB are certainly looking to strengthen the company’s position in the three related utility-centric markets of power generation, transmission and distribution.  Ventyx has helped with the company’s total array of “smart grid” related offerings with its IT and OT capabilities.  Baldor had provided ABB with additional  inroads to the motor market, and now T&B will provide the company with access and distribution channels for low voltage products, and help fill in product line gaps with its Joslyn HV/MV product offerings.

Secondly, look at the gain in ABB’s access to the construction and industrial segments, both of which may see some upswing by mid-2012.  T&B plays an important role as well in serving the needs of mid-size utilities across the country and to some extent, internationally.  This provides ABB with additional openings into the public power utilities and cooperative utility communities.

Thirdly, I think ABB has correctly identified the “new elephant” in the global electric power marketplace as Schneider Electric.  This acquisition marks the first significant industry reaction to Schneider’s key role around the world in low voltage equipment (as well as some MV offerings by virtue of the division of assets of the former Areva T&D) and Schneider’s extremely well-developed marketing channel strategy.

Fourthly, is ABB’s response to the near-term global economic outlook.  By virtue of its continuing focus on North American acquisitions, ABB is avoiding the as-yet unresolved Euro-crisis in terms of purchase prices and values, and near-term European market outlook.  Coupled with the fact that North American construction and industrial activity will likely pick up the pace this year (given what we have seen thus far into 2012), the acquisition certainly makes sense to me.

As far as downsides to the string of acquisitions, the biggest complaint I have seen among financial analysts commenting in the press for all three acquisitions, is the premium paid for these companies, relative to earnings, market value or recent year revenues.  On the other hand, ABB has the financial resources and the access to capital markets that together enable the company to take these decisive strategic actions to improve its overall market position in North America, and around the world.

–          Chuck Newton

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Newest Report: Utility Data Communications Market Study in 3 Volumes

Despite economic uncertainty, Outlook for Investment on Utility Telecommunications Upgrades during 2012-2014 remains positive, influenced by a new generation of field automation applications and advanced metering.

Study Finds Growth in Wireless Investment to Outpace Increases in Wireline Data Communications Over Near-Term and Mid-Term

Slow Rulings Related to Rate Restructuring and Real-Time Pricing Initiatives Viewed as Holding Back Some Near-Term Investment in Electric Utility Communications Upgrades.

JANUARY 3, 2011 ELLICOTT CITY, MD – Newton-Evans Research Company, Inc. announced completion of a three-volume report series focusing on data communications in the electric power industry. Survey findings from over 100 electric utilities worldwide indicate:

1) 88% of utility respondents agree that open protocols provide a degree of protection from premature obsolescence of products, but 58% of indicated they have experienced products that are supposedly standardized/open/interoperable which have not functioned as expected or promised by the vendor.

2) Only 11% of all respondents think that the use of synchrophasor technology will be a main driver in Smart Grid communications requirements, and 10% believe that synchrophasors will be the catalyst to adopt IEC standard 61850. (However, 48% said they were “neutral” regarding either statement.)

3) When asked, “What are some of the key data communications issues facing your utility?” responses to this question ranged from “Cost,” “Reliability,” and “Security” (the three most frequently mentioned) to other issues like technology obsolescence, bandwidth, interoperability, lack of standardization, spectrum availability, NERC CIP compliance, latency, terrain-topography , and scalability. See the accompanying illustration.

4) A follow up question to this was, “What do vendors need to do to address these issues?”. The most frequently identifiable sentiment could be paraphrased as, “Be more attentive to Utility requirements, communicate more, work together.” This was followed by comments mentioning “Standardization.” It is clear from this feedback that utilities expect increased cooperation from their communications equipment suppliers and services providers than they may have experienced to date. On the other hand, if vendors need to adapt their solutions and tailor their products and services to fit the situational needs of varying utility profiles, then they have their work cut out for them. Collaborative research and development may provide a feasible compromise solution.

Volume One of the three volume study includes detailed survey findings on grid operational telecommunications usage patterns and plans from over 100 electric utilities in 24 countries.
Volume Two contains profiles for 22 of the leading communications solutions providers and includes more than 30 smart grid communications-centric project summaries from around the world. Volume Three provides an in-depth assessment and outlook for the smart grid telecommunications market and summary of key market influences.

Level 1 – Reliability, Cost, Security
Level 2 – Bandwidth, Spectrum, Staffing
Level 3 – Protocols, Interoperability, Migration Paths
Level 4 – Obsolescence, NERC CIP, Carrier Limitations, Standards

Additional information on the three volume study Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry: 2011-2015 is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone 1-410-465-7316 or visit www.newton-evans.com to access the report brochure. The three-volume report is priced at $3,750.00 and can be ordered and downloaded online. Khrissy Newton can also be reached at knewton@newton-evans.com to provide any additional information regarding the new report series.

 

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2011 Ends on High Note . . . With the release of our newest market research study: Data Communications in the Global Electric Power Industry

January 3, 2012 –  Marks the publication launch date for the Newton-Evans’ three-volume study “Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry 2011-2015”

The Newton-Evans Research team has been working on its three volume study of Data Communications Usage Patterns and Trends for Smart Grid over the past several months. We have been successful in obtaining cooperation from more than 100 leading utilities around the world for this major new study.  Discussions with leading equipment vendors, services providers, consultants and analyst colleagues have been completed.

We are pleased to announce that as of January 3, 2012, the three volume report will be available for online ordering via the Newton-Evans website. The report series is priced at $3,750.00 for the complete set.

For the month of January, we are pleased to offer both the well-received 2011 three-volume Smart Grid study series and the three-volume Data Communications series for a total price of only $5,750.00. This is a significant savings and a real value to any smaller-to-mid-size organization now active, or planning to become active, in the development of smart grid for the world community of electric power utilities, ISOs and RTOs. To take advantage of this offer, place your order over the phone by calling us at +1 410 465 7316 or toll free 800 222 2856.

For special pricing information on these and other critically acclaimed Newton-Evans studies published in 2010 and 2011, please call Khrissy Newton at 410-465-7316.

New Studies Underway
1) The acclaimed series of protective relay studies (now in its tenth edition) is formally underway. Look for progress updates on  the Newton-Evans’ website during January. This is another of Newton-Evans’ multinational studies with participation from each world region, involving more than 25 countries, anticipated.

2) A current study of Automatic Generation Control practices among ISOs/RTOs and large utilities is in progress and will be finalized during January.

3) The “To the Point” series of short, concise reports on more than 75 T&D topics is now underway, with monthly releases of 5-7 reports expected during 2012.

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Excerpts from Volume One of “Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry: 2012-2014”

The findings presented and excerpted from this three-volume study are based on a global research survey sent out by Newton-Evans over the course of the second, third and fourth quarters of 2011. One hundred and two utility officials involved in Operations and Telecommunications Planning and Design responded to the survey. These utilities combined serve over 153 million end use customers globally; 30 million in the U.S. alone. Volume Two includes many case studies of smart grid communications projects and Volume Three provides a fresh outlook for telecommunications expenditures and trends over the 2012-2014 period.

What are some of the key datacomm issues facing your utility?
In summary, when reviewing the comments received from most of the participating utilities, there is almost a different issue or sets of issues facing each utility when it comes to key data communications challenges. Newton-Evans’ analysts have grouped the large number of responses into several categories. The most frequently mentioned issue across all 81 comments was Cost (mentioned in 22 comments) followed by Reliability (mentioned in 16 comments) and Security (15 comments.) Other issues mentioned included zoning approval for new radio towers, communications carriers facing the same economic pressures as utilities, choosing a DA communications technology, the impact of data management on computing and human resources, lack of ability to manage disparate systems with utility resources, and others.

Continue reading Excerpts from Volume One of “Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry: 2012-2014”