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Newton-Evans Research Company continues to assess findings from its six-month research study and survey of protective relay usage patterns in the world community of electric power utilities. Insights received from 114 large and mid-sized utilities in 28 countries point to some interesting differences in plans for implementation of the “full digital substation” concept and to increased use of condition-based maintenance (CBM) strategies for protective relays.

Implementation of the “Full Digital Substation” Concept:
Thirty-four percent of the survey respondents from the U.S. and Canada agreed with the statement, “By year end 2018, we will be well on our way toward implementing the full digital substation concept.” Thirty-seven percent disagreed with the statement. Forty percent of small North American utilities (fewer than 100,000 customers) agreed with the statement, but only 18% of large utilities (more than 500,000 customers) concurred.

Forty-three percent of the international respondents agreed with the same statement, which is slightly more than what was observed in North America (34%). Twenty-five percent had no opinion, and another 25% disagreed. Importantly, the typical international utility respondent was somewhat larger (in terms of customers served) than their North American counterpart.

“By year end 2018, we will be well on our way toward implementing the full digital substation concept”

Increased Use of Condition-Based Maintenance:
Forty-seven percent of North American respondents agreed with the statement “We plan to increase use of condition-based maintenance to reduce maintenance testing time of technicians.” Fifty-six percent of IOUs, 43% of public power utilities, and 39% of utility cooperatives agreed with the statement. Fifty-nine percent of large utilities (>500,000 customers) plan to increase in use of CBM while only 37% of small utilities (<100,000 customers) plan to do this. Seventy-two percent of international respondents agreed with the statement that they plan to increase use of CBM to reduce maintenance testing time. Only 6% disagreed.

“We plan to increase use of condition-based maintenance to reduce maintenance testing time of technicians”

This Newton-Evans survey of electric utilities included more than 20 questions on product functionality and market-related issues. The 2016-2018 study is a series of four reports published during late-year 2016. These reports are geared to the planning needs of protective relay suppliers, power industry consultants, and utility protection and control departments. The four 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: 2016-2018 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. For readers interested in purchasing this new series please call or email info@newton-evans.com for special introductory pricing.

Nearly half of North American electric utilities participating in the 2017-2019 Newton-Evans Research study plan to upgrade or retrofit their SCADA system by 2019. Twenty-two percent plan to upgrade or retrofit their energy management system (EMS), and twenty-five percent will upgrade or retrofit their outage management system (OMS). Twenty-six percent of North American utilities in the survey sample are adding a new or replacement distribution management system (DMS) or advanced DMS by 2019.

In comparison to the North America survey sample, a greater percentage of international utilities surveyed plan to install new or replacement systems for EMS, SCADA and OMS. A greater percentage also plan to upgrade and/or retrofit systems across the board. Twenty-nine percent of international survey respondents plan to replace or install new EMS or OMS systems by the end of 2019. Sixty-four percent will upgrade or retrofit their existing SCADA systems, and 36% will upgrade or retrofit their DMS or OMS systems by year end 2019.

Planned budget range from 2017 to Year End 2019 for DMS/ADMS, OMS
Twenty-six percent of North American utilities operating (or planning to operate) a DMS/ADMS plan to spend more than $2 million on DMS or ADMS from 2017-2019. Fifteen percent of OMS users plan to spend that much on their OMS. As is usually the case, major IOUs have larger budgets for such operational systems than do smaller utilities.

Overall, one-half of international utilities sampled said they have budgeted less than $500,000 for OMS from 2017-2019. Thirty-eight percent of international utilities surveyed plan to spend over $2 million on DMS or ADMS from 2017-2019, and 14% plan to spend that amount on OMS.

Further information on this new series The World Market Study of SCADA, Energy Management Systems, Distribution Management Systems and Outage Management Systems in Electric Utilities: 2017-2019 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 readers interested in purchasing this new series please call or email info@newton-evans.com for special introductory pricing.

The Newton-Evans Research Company has published report findings from the company’s recently completed study of EMS, SCADA, DMS and OMS usage patterns in international electric power utilities. This is the second of four volumes of its 14th global market assessment of operational control systems – a survey-based study conducted by Newton-Evans since 1984.

Here are some observations gleaned from interviews and surveys with 31 utility participants from 25 countries:

Systems in Use
All utilities that participated in the survey are operating SCADA systems, and 74% also have an energy management (EMS) installation. Fifty-two percent use a distribution management systems (DMS) and 61% use an outage management system (OMS).

Fig. 1. Control Systems in Use – International Electric Utilities

Supplier Usage Patterns
GE led in terms of suppliers used for each type of system included in the study, based on the inclusion of Alstom Grid mentions. ABB and Siemens were next in total number of mentions.

Upgrades and Replacements
While almost two-thirds of international respondents plan to upgrade their SCADA installations, 29% plan to replace existing EMS and OMS systems.

Fig. 2. New/Replacement or Upgrade/Retrofit Control Systems Planned – International Electric Utilities

Distributed Energy Resources
Forty percent of international utilities surveyed said their SCADA functionality and network models include distributed energy resources (DERs), and 47% indicated they plan on including DERs in the next few years. By contrast, none of the North American utilities surveyed said their SCADA functionality and network models include DERs. However, 82% of North American utilities surveyed plan on integrating DERs into their SCADA in the future.

System Convergence
About one-third of international respondents (34%) stated that they had already converged SCADA/DMS with OMS functions. However, 28% indicated no plans to converge these systems. Half of the North American utilities surveyed said they have not converged SCADA, DMS and OMS and have no plans to do so.

Third Party Services
More than one half of the international survey respondents use third party services for cyber security monitoring, while 48% use outside assistance for critical infrastructure protection and/or vulnerability assessments. These percentages are higher than what was reported in the previous study conducted in 2013.

Role of Analytics Software
The use of analytics software has increased since the 2013 study; this year’s survey found that 69% of international utilities use OMS analytics, while the 2013 survey reported that 29% of the survey sample used OMS analytics. About one-third currently use analytics for asset management.

Cloud Computing Interest
Only 23% of the international utility participants indicated any interest in cloud implementations at their company. This finding closely parallels the observations provided from North American respondents.

Further information on “The World Market Study of SCADA, Energy Management Systems, Distribution Management Systems and Outage Management Systems in Electric Utilities: 2017-2019” 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 readers interested in purchasing this new series please call or email info@newton-evans.com for special introductory pricing.

Emphasis Placed on Extending Applications and Expanding Roles of Distribution Management Systems and Outage Management Systems

Here are some observations based on interviews and surveys with 69 utilities from North America participating in our survey:

Almost one-half of all North America survey respondents (47%) plan to upgrade or retrofit their SCADA installations by 2019. Most respondents with such plans were mid-size and larger cooperatives and public power utilities.

Twenty-six percent of respondents plan to purchase a new or replacement DMS by 2019. Only six (major) utilities reported that they currently have an Advanced DMS, but 24 others will have an ADMS in the near future. Importantly, of the 30 respondents using or planning to use an ADMS, none indicated that their SCADA functionality and network modeling presently include distributed energy resources (DERs). However, most of this sub-group (82%) plans to include DERs in their ADMS functionality in the future.

Real-time network analysis and fault location were the prevalent applications being used as part of current DMS or ADMS installations. Plans are centered on supplementing these (where not yet implemented) and adding network optimization and distributed energy resource management capabilities. (See Fig. 1)

Figure 1. Applications used as a part of DMS/ADMS

Real-time linkages between SCADA and GIS or OMS were found in 44% of the utility sites. Forty-one percent reported having no real-time linkages among these systems.

Almost half of the survey respondents indicated that the operational systems support group is managed by the line of business, while 31% stated that such support is now part of corporate IT. (See Fig. 2)

Figure 2. How is OS Support Managed?

Third party services are being used and relied upon to assist with NERC CIP compliance issues and for the conduct of vulnerability assessments.

DNP3 continues to be the most prevalent operational data communications protocol throughout North American electric power utilities. Plans call for continuing the use of DNP3 for the foreseeable future among most of these utilities. Some planning for IEC 61850 is underway, but remains at a low level among these respondents.

More than a score of additional topics were surveyed in this new study including the impact of NERC CIP compliance on budgets and workloads; cyber security issues; telecommunications strategies and methodologies; distribution network model maintenance; changing organizational responsibilities for control systems; budget outlooks; and applications usage patterns.

Further information on this new series, “The World Market Study of SCADA, Energy Management Systems and Distribution Management Systems in Electric Utilities: 2017-2019” is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone: 410-465-7316 Email: info@newton-evans.com 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.

Newton-Evans Research Company continues to assess the results of its six-month research study of protective relay usage patterns in the world community of electric power utilities. Findings from 114 large and mid-size utilities in 28 countries point to some newer trends in adoption and use of protection and control technology.

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

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

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

Impact:
The role of “purchasing known relays” makes it very difficult for new market entrants to gain a share of this multi-billion-dollar global protective relay market. Similarly, it has become equally difficult for existing relay suppliers to gain new customers unless the relays are components of larger electrical equipment (motors, transformers, switchgear, et al). Despite these market constraints, caused in large part by a steep learning curve in programming and protection settings, some relay manufacturers have increased their market presence through specialization in the design and supply of protective relays for one or more product segments (protection of motors, transformers, generators, switchgear and the like). Other manufacturers have continued to offer a wide range of protection solutions, but address specific world regions or specific types of electric utilities or industries.

Examples of such specialized expertise can be found in many of the companies engaged in the manufacture of protective relays. Witness the success of Beckwith Electric, a market leader in generator protection and now actively engaged in distributed generation protection as well. Basler Electric’s microprocessor-based relays combine multifunction protection with control, metering, data acquisition and network communications. RFL and ERLPhase are two additional specialist participants in the North American and international markets. The global electrical equipment manufacturers with a wide array of protective device offerings include ABB, Eaton, GE, Siemens and Toshiba. Relay-centric manufacturing leaders include the multi-hundred million dollar businesses of the USA’s Schweitzer Engineering Labs (SEL) and the China’s NARI.

So the question now is – how do relay manufacturers grow in a “mature” market for protective devices? The response is this: While the traditional utility and industrial markets for device protection are indeed mature in many countries- there are a host of new relay-centric applications for protective devices that include significant relay-like functions and control-monitoring capabilities and require less complex programming and relay setting procedures. The market requirement to protect distributed energy devices including wind turbines and solar panels continues to grow. The expanding market for distribution automation device controls (capacitor banks, reclosers, line monitors, fault sensors, etc.) provides additional new opportunities for participation by relay manufacturers.

DA: Distribution Automation – Capacitor bank relays, Recloser controls, Fault current limiters
DER: Distributed Energy Resources – Wind turbine relays, Photovoltaic panel relays
ES: Energy Storage – Storage battery relay, AC/DC converter controls
DR: Demand Response – Load control switch relay

For further information on the research series or to order The World Market for Protective Relays in Electric Utilities: 2016-2018 visit our reports page.

Here is a brochure and order form:
http://www.newton-evans.com/2017EMSSCADABrochure.pdf

Newton-Evans’ World Market Study of SCADA, Energy Management Systems, Distribution Management Systems and Outage Management Systems in Electric Utilities: 2017-2019 is a four volume, multi-client market report. Participants in this market study include utility engineers and managers from investor-owned utilities, municipal and provincial utilities, cooperative utilities within the United States and Canada, together with national power systems throughout the world.

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

In the first quarter of 2013, Newton-Evans estimated a combined value of awards for EMS, SCADA, DMS, OMS and energy exchange and ISO/RTO systems at upwards of $6.5 Billion over 4 years. It will be important for electric utilities and control system vendors to learn how changes in the world market conditions since then will affect the outlook for 2017-2019.

Methodology
Field survey work is conducted using a mix of primary research methods including personal interviews, mail surveys, faxes, e-mail and follow-up telephone interviews. Over the past 15 years, more than 1,000 utility officials have participated in one or more Newton-Evans grid modernization and energy automation-related studies.

The survey-based findings in Volumes 1 (North American Market) and 2 (International Market) will discuss the following:
 Approximate number of Poletop RTUs, Feeder/secondary RTU’s/Smart DA devices, Substation RTUs, PLCs, SA platforms, Synchrophasor measurement units, and Substation level phasor data concentrators. Anticipated numbers planned for installation by year-end 2017, along with protocol requirements.
 Plans to implement IEC 61850
 Communications Methods in use and planned for use
 SCADA/EMS/DMS/OMS procurements, new, replacement and upgrade plans for SCADA/EMS/DMS/OMS
 External assistance and third party services requirements in control center operations

January 2017 Edition of Market Trends Digest

January 4, 2017

A new edition of the Newton-Evans Market Trends Digest is now available: http://www.newton-evans.com/newsletter_archive/mtdJan2017.pdf This issue includes: A look back at the Worldwide Protective Relay Marketplace study completed last month Progress report and interim findings from the 2017-2019 SCADA, EMS, DMS and OMS global market study Excerpts from a 2016 study on the need for third […]

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Early Survey Findings Point to Continuing Development of EMS, SCADA, DMS and OMS Capabilities during 2017-2019 among North American Electric Power Utilities

December 19, 2016

The Newton-Evans Research Company has released preliminary findings from its current study of EMS, SCADA, DMS and OMS usage patterns in North American electric power utilities, one of four component reports of the company’s global market assessment series on operational control systems. Among the initial observations gleaned from interviews and surveys with over 60 officials […]

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Findings from Newton-Evans 2016 Study of Protective Relay Trends in the World’s Electric Power Utilities Depict a Receptive Market for Incorporating Advanced Technological Capabilities

December 7, 2016

Global Study Finds Continuing Moderate Growth in Protective Relay Market with Commitment to Improving Protection Coordination and Grid Security Practices Role of Synchrophasors and Teleprotection Continues to Expand; Provides Better Situational Awareness and Visualization for Control System Operators Newton-Evans Research Company has completed a six-month research study and survey of protective relay usage patterns in […]

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Newton-Evans Surveys Underway

November 2, 2016

Outlook Study for HV and MV Equipment Purchasing Plans Newton-Evans Research is conducting a study of U.S. electric utility plans for T&D equipment purchases over the coming 36 months. If you work in power transmission or distribution and specify or procure equipment, you can help the utility community by participating in the study. In turn, […]

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