Posted on by

January-June 2010 Research Activities: Status Report to Our Clients and Readers

EMS, SCADA, DMS Study. The first volume (North America) of this expansive four-volume study will be released in July. We have already surpassed the levels of participation obtained in the past two studies, with more than 100 mid-size to TOP 10 electric power utilities providing their control systems usage patterns and plans. Meanwhile, the international research effort is coming along well, with utilities from more than 20 countries participating within the first two weeks of commencing this portion of the study. The Supplier Profiles volume is being updated with fresh information from all leading integrators of T&D control systems around the world.

Substation Automation Study. This study is revving up to get underway with client inputs and reviews of the survey questions. The new survey will be fielded worldwide in late September through early November. We again hope to obtain participation from about one half of significant world electric power utilities.

Global Electric Utility CAPEX Report: Completed in the first quarter of 2010, this report has been quoted in business publications and used in briefings by some of the very large management consulting firms around the world. The formal title is Global CAPEX and O&M Expenditure Outlook for Electric Power Transmission and Distribution Investments: 2010-2011 – Funding Outlook for Smart Grid Development.

Continue reading January-June 2010 Research Activities: Status Report to Our Clients and Readers

Posted on by

Chuck’s Composite (July 2010)

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

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

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

Posted on by

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

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

Smart Grid Initiatives – Funding

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

Control Systems Upgrades and Replacements

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

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

Posted on by

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

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

(Updated May 7)

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

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

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

Posted on by

The Potential Role of Technology Transfer for Managing the Emerging Smart Grid…

A Look at Commercial Aviation’s Cornerstone Operations Control System to Provide Regional and Nationwide Operations Management for Electric Power

I want to take this opportunity to provide our web site visitors and our Market Trends Digest readers (upcoming spring 2010 edition) with some summary information about what we believe to be one of the country’s most advanced implementations of something akin to what we have been discussing for the past few years as an emerging requirement for the national’s smarter electric grid operations.  The FAA Telecommunications Infrastructure System (or FTI) is perhaps the best example I have seen of a system of effective management tools for nationwide situational awareness and visualization so vital to the daily operation of a communications-centric community as air traffic.  

Recently I had an opportunity to tour the FAA’s Telecommunications Infrastructure control center.  I came away from this “system of systems” quite impressed,  this after visits to perhaps 60-65 major utility and pipeline operations control centers in several countries in the course of my career.  In fact, this particular system is probably the largest (encompassing the entire United States) and without a doubt, one of the more sophisticated and most complex communications control and network management systems in existence. 

Continue reading The Potential Role of Technology Transfer for Managing the Emerging Smart Grid…

Posted on by

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

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

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

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

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

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

Posted on by

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

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

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

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

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

Posted on by

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

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

Posted on by

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

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

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

Posted on by

Off to a Fast Start: Newton-Evans tackles 2010’s initial array of assignments

With a warm welcome to our newest report clients from China, United Arab Emirates, Czech Republic, and Japan, along with assignments from several of our long-term North American and European clients, Newton-Evans staff is keeping up with the workload despite two record blizzards affecting day-to-day life and work in the mid-Atlantic region of the U.S. over the past week.

Our client-focused research activities over the first six weeks of 2010 have included topics ranging from distribution automation, to DMS, an update on demand response, plans for substation automation, a review of apparatus monitoring and diagnostics, to a synopsis of legacy electric utility application software market size and shares.  In addition, the company is focused on two multi-client studies:  First, the newest round of CAPEX studies, with participation and assistance now obtained from utility officials in more than 25 countries. Secondly, a new study of transmission planning in the USA and Canada will soon be available.

Some interesting electric power marketplace facts uncovered during the early weeks of 2010 include:

  • Size of the global installed base of large power transformers
  • Number of large power plants in countries around the world – to accompany our country-specific substation counts
  • Extent of Industrial power delivery micro-grids
  • Extent of intelligent electronic devices being deployed for distribution network automation.

Continue reading Off to a Fast Start: Newton-Evans tackles 2010’s initial array of assignments

Posted on by

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

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

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

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

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

Posted on by

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

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

Newton-Evans Research believes the greatest benefit to the electric power industry may result if General Electric’s offer becomes the winning bid. The reason: Areva T&D fills several product/equipment gaps in GE’s T&D product line and related automation offerings. A successful acquisition by General Electric would provide the firm with world-leading combined market shares in substation automation, protection and control and T&D control systems (energy management and SCADA). GE would become a major player in several growing portions of the transmission equipment business, establishing a stronger foothold in the North American and international transmission market segments described below. Together these segments are worth $25-40 billion on a worldwide basis. Areva T&D earned about $3.5 billion in HV equipment sales in 2008-2009. Continue reading Potential Synergies of an Areva T&D Acquisition by General Electric: Why Alstom-Schneider and Toshiba are Also in the Bidding

Posted on by

Critical Issues In Protective Relaying: Engineering Perspectives From 24 Countries

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

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

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

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

Posted on by

Newton-Evans Role in Recent SMARTENERGY East Coast Conference

Chuck Newton moderated  a well-received session on Demand Side Management and Energy Efficiency Technologies for this New York City conference held on October 27th and 28th. The conference was hosted by the Spintelligent Company, publisher of Metering International.

The panel members for this session included Ron Zimmer, CEO of Ottawa-based CABA – the Continental Automated Buildings Association, Bill Scheffler, Director of North American Sales and Business Development for Sigma Designs, parent of  Z-Wave Alliance in California, and Margaret Jolly, Manager of Distributed Generation Programs for Consolidated Edison in New York City.  Ron Zimmer’s talk focused on understanding the evloution of the connected home market.  Bill Scheffler discussed how we can take energy management beyond the meter.  Margaret Jolly gave a presentation on ConEdison’s very strong DG initiatives.  The audience of about 110 officials from utilities, consulting firms, smart grid services providers and regulatory bodies posed several questions to the speakers and good give-and-take discussions ensued.

For more information visit www.smartgridcareers.com or www.spintelligent-events.com.

Posted on by

Thinking Smart: The Outlook for Spending on Smart Grid Technologies in 2009 and Beyond

An article by Newton-Evans CEO Charles Newton titled Thinking Smart: The Outlook for Spending on Smart Grid Technologies in 2009 and Beyond was recently featured in Volume 9 of the Energy and Utilities Project magazine, an mThink publication sponsored by IBM. The majority of the article summarized the spending outlook for eight major components of the smart grid: control systems, smart grid applications, substation automation programs, substation IEDs and devices, AMI/AMR, protection and control, distribution network automation, and telecommunications infrastructure. Additionally, Mr. Newton provided a general picture of the types of initiatives that need to be taken by individual utilities on a case by case basis to put smart grid technology to work for them:

“I have often compared the evolution of the smart grid to the iterative process of building the international space station: a long term strategy, a flexible planning environment, responsive changes incorporated into the plan as technology develops and matures, properly phased.What function we might need is that of a skilled smart grid architect to oversee the increasingly complex duties of an effective systems planning unit within the utility organization.”

To obtain a copy of The Energy and Utilities Project 2009 visit www.UtilitiesProject.com and sign up for online membership.

Posted on by

Newton-Evans Cited in Automation World Article

Newton-Evans was cited in an Automation World article titled, “Smart Grid Stimulus Funds to Provide Market Boost.” Chuck Newton was quoted as saying:

“The Smart Grid eventually will be built out. But utilities never rush into anything, for the simple reason that they’ve got to keep the lights on. They can’t take it out of service to rebuild it. So it’s got to be an iterative process, and that usually means multi-year efforts.”

Read the full article on the Automation World website.

Posted on by

Available Reports & Current Survey Efforts

In addition to our most recently completed studies on Protective Relays and Smart Grid Capital Expenditures (samples of which are available on our Reports page) Newton-Evans Research is currently inviting electric utility officials involved with protective relays to participate in our “Back Page” relay study. After completing a study of the Worldwide Protective Relay Marketplace, a supplementary questionnaire consisting largely of questions asked by utility officials to utility officials has been designed to answer questions that fall into these categories: Equipment/Device related, Tripping/Control related, Settings/Analysis related, Strategy/Policy related, Testing/Maintenance related, Vendor/Manufacturer related, Distributed Generation related, and Generation related questions.

The mix of yes/no and short answer questions on the survey include:

What criteria do you use for replacing older electromechanical and solid state relays?

Does your utility use a redundant bay control unit?

Do you use communication processors to consolidate relay communications for SCADA?

How do you manage digital relay firmware upgrades for installed relays?

What strategy do you follow for improving the reliability and security of busbar protection?

Given the global dearth of power system engineers, please describe what your utility is doing to attract, develop, and train new relay and protection engineers?

your Utility use process based or condition based maintenance for your protection system?

Do you include transformer sudden pressure relays in your normal testing cycles?

Do you use localized data gathering at substations with automated logic to operate local station equipment?

What strategy do you use to overcome the problems created by the mixture of vendors, tools, generations, and interfaces?

Participating electric utilities will receive the summary findings from this study as a “thank you” from Newton-Evans.

Posted on by

Electric Power Utilities Continue to “Stay the Course” with Projected Capital Spending Plans for Smart Grid Building Blocks

Some Key Project Deferrals Noted in Transmission and Distribution Infrastructure . . . Rebound Anticipated by mid-2010 for Transmission . . . Later into 2011 for Distribution Infrastructure

The views of 118 Officials from Electric Power Utilities in 36 Countries Grow Somewhat More Conservative Since December but Remain Upbeat for Continued Investment in “Smart-Grid” Components

Ellicott City, Maryland – 9 July, 2009. In spite of the weakened economic conditions in countries around the world, electric power utilities continue to make significant financial commitments in “smart grid” building blocks and related automation programs. The majority of the large public and private utilities participating in the June 2009 Newton-Evans study are poised to continue many of their long-term capital investment programs as had been originally planned back in January of 2008. However, in several instances, the projects have been deferred from their initial planned start-up dates.

In a new tracking study released today by the Newton-Evans Research Company, a significant majority of the 118 electric power grid officials from 36 countries participating in the CAPEX and O&M budget planning study indicated that capital spending for control systems, substation automation, smart grid-related programs, and advanced metering rollouts are largely on track albeit with some pushback in timing. However, several planned investments for transmission and distribution grid infrastructure components have been deferred for this year, but are expected to rebound perhaps as early as the fourth quarter of 2010.

Continue reading Electric Power Utilities Continue to “Stay the Course” with Projected Capital Spending Plans for Smart Grid Building Blocks

Posted on by

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

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

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

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

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

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

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

Further information on the research series The World Market for Protective Relays in Electric Utilities: 2009-2011 is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 or visit www.newton-evans.com for additional information. Send email to info@newton-evans.com

Posted on by

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

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