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The Newton-Evans Research Company has released additional findings from its newly published four volume research series entitled: The World Market for Substation Automation and Integration Programs in Electric Utilities: 2017-2020.
This report series has observed four major types of professional third-party service providers that assist electric utilities with substation modernization. These firms range from (1) smaller local or regional engineering consultancies with substation engineering resources to (2) major global participants in EPC work, to (3) the engineering services units of manufacturers of substation devices and platforms, to (4) substation integration specialist firms that source and integrate devices from multiple manufacturers for utility and industrial clients. The role of such service providers is growing in importance each year. Global spending for external substation engineering and automation services provided to electric utilities over the 2017-2020 years will likely exceed $4.1 Billion according to the study findings. This is an important segment of the total world market potential for substation modernization that exceeds $45 billion.
2016 Global Share Estimates for Professional Services Providers of Electric Power Substation Integration and Automation Activities
The North American market report (Volume One) includes survey participation from 65 large and midsize US and Canadian electric utilities while the international market report (Volume Two) includes survey participation from 32 unique utilities in 20 countries around the world. In addition to the baseline survey questions, the report includes 2017 substation survey findings on four additional specific topics: communications issues; protective relaying trends; security topics and the CAPEX/OPEX outlook for substation modernization.
Volume Three is the detailed market synopsis and global outlook for substation automation and integration:
- Section One of the report provides top-level views of substation modernization, automation & integration, and a narrative market synopsis.
- Section Two provides mid-year 2017 estimates of population, electric power generation capacity, transmission substations and primary MV distribution substations for more than 120 countries in eight world regions. Information on substation related expenditures and spending for protection and control for each major world region and several major countries is also provided.
- Section Three provides information on NGO funding resources for substation modernization among developing nations.
- Section Four of this report volume includes North American market share estimates for 2016 shipments of many substation automation-related devices and equipment.
The Supplier Profiles report (Volume Four) provides descriptive information on the substation modernization offerings of more than 90 product and services companies.
For more information about this report series or to order online, visit our reports page.
The Newton-Evans Research Company has released a new report on global substation automation markets based on the company’s 2016-2017 world market studies of substation automation and integration activities. The objective of this market outlook report by Newton-Evans Research Company, according to CEO Chuck Newton is “to provide world regional substation modernization market sizing, including country-specific activities for the largest countries in each region. As such, the outlook report complements the survey-based volumes covering North American and International substation automation markets, also completed in November.”
This newest report undertaken by Newton-Evans has been developed using a variety of information sources including:
- Reviewing available and ongoing Newton-Evans’ studies of substation automation through the fourth quarter of 2017.
- Incorporating data from the Newton-Evans global electric power market model which provides the outlook for substation-related activities and investments based on (1) the estimated number of substations in each of 180+ countries, and (2) Newton-Evans 2017 survey-based findings from utilities, consulting firms and automation systems and equipment providers.
- Requests made during 2014-2017 for summary market-related information from major substation automation-related suppliers. Review and updates of supplier profiles for more than 50 specialist firms around the world will be published as Volume Four to the new series.
- Review of project data from NGO sources of funding, for investments used primarily (or in part) for substation construction and modernization.
Based on the findings from these various sources and research methods, this new report includes the following sections:
- Narrative Summary of Observations for each of eight world regions.
- Counts of substations by country for each world region.
- Estimates of substation automation-related investments made in each world region and for major countries.
- Estimated market shares by world region for supplier groupings by provider type, i.e., specialist substation integration firms; SCADA-related systems integrators; IED manufacturers with substation services business units; T&D engineering services having substation integration expertise; other substation integration service providers
- Examples of NGO funded loans and grants used for substation modernization projects in various countries.
The following chart illustrates the estimated total number of HV substations in each world region.
Continue reading Global Outlook for Substation Automation and Integration Continues to Show Impressive Growth
The Newton-Evans Research Company has released findings from its International market study, the second of four reports collectively titled: “The World Market for Substation Automation and Integration Programs in Electric Utilities: 2017-2020.” The international study compares the current round of research findings with several earlier substation modernization tracking studies conducted by the firm. A total of 90 large and mid-size electric power utilities from 22 countries actively participated in the world market study.
Substation Information Processing Task Handling:
Seventy-two percent of North American respondents indicated that primary substation information processing is either currently handled by a smart RTU or will be by year end 2020. Forty-six percent indicated that a data concentrator handles this task for at least some substations, while 43% said a communications processor is responsible for this activity. Multiple approaches to performing IP tasks inside the substation fence were in use among the larger utilities having scores or hundreds of substations.
In contrast, 59% of international respondents reported use of smart RTUs for handling information processing tasks inside the substation fence. Data concentrators were cited by 47% and PCs by 35%. About one-fourth of the international survey respondents indicated they either currently distribute information processing tasks over multiple platforms or they plan to by year end 2020.
Continue reading International Utilities Planning to Expand Investments in Substation Modernization
Russia is the world’s third largest consumer of energy, and as such the country has announced plans and programs to modernize its energy infrastructure, especially for the nation’s power sector. Currently, the Russian national power grid includes more than 230 GW of production capacity. The country’s utilities are known as energos. These energos operate more than 31,000 T&D substations located throughout multiple regions and time zones. There are almost 800 large scale power plants in the country, including 15 nuclear sites operating some 35 reactors. Seven new nuclear units are now under construction as of mid-2017.
The world’s Tier One power equipment manufacturers each have a position in the Russian market for generation transmission and distribution. Each has made significant multi-hundred million-dollar (and some, multi-billion dollar) investments in the country. Cumulatively, the Tier One providers along with other very large equipment manufacturers from Asia and a few non-Russian Eastern European suppliers account for as much as 75% of all capital equipment used in the electricity sector today (Newton-Evans estimate). However, for lower cost MV equipment and for automation components, there is a growing presence of in-country manufacturers and suppliers, as well as important roles being played by market participants from China, India and other Asian countries, especially for electronic devices.
In terms of smart grid computer applications, there are a host of Russian companies providing integration and installation services, as well as developing a wide range of smart grid applications either to work in conjunction with systems being provided by the likes of ABB, GE, Siemens and Schneider Electric.
Continue reading A Closer Look at the Changing Russian Electric Power Industry
The Newton-Evans Research Company has reached the midpoint of its triennial tracking study of change and automation occurring in the world’s electric power substations.
As of August 7, more than 50 major US and Canadian utilities have submitted their survey responses to Newton-Evans staff. A summary of some key interim findings in this 30-part survey process are as follows:
Impediments to Substation Automation
There are no impediments currently being viewed as major hurdles to implementing substation automation for either new or existing HV and MV substations. Most respondents at the midpoint of the North American study have indicated some mild-to-moderate concerns with eight of the “potential obstacles” listed on the survey form, including security concerns, insufficient staffing levels, lack of funding and not having a solid business case for further substation automation
Substation Construction Plans
North American respondents to date have indicated plans for construction of hundreds of new HV and MV substations in their service areas by 2020. Hundreds more substation are planned for retrofits over the same outlook period. The findings surpass the outlooks of earlier Newton-Evans tracking studies.
Control Logic in RTUs
About 30% of North American respondents to date have indicated some use of control logic in their substation RTUs. Another 14% plan to have control logic integrated into RTUs by 2020. Control logic is currently being used among North American utilities for alarm logic and transfer trip schemes – important for renewables power flows, opening and closing breakers and operation of field devices.
Continue reading Midpoint Of 2017 North American Study Finds Increase In Substation Construction And Retrofit Plans Over 2014 Findings
After a brief summer hiatus, away from energy industry events, with the successful IEEE Power and Energy Society event recently completed, and this not being a CIGRE year, the summer lull in conferences has taken hold until early September.
Then things start getting busy, with dozens of electric power and related energy conferences scheduled for the September-November months.
Newton-Evans’ Chuck Newton has speaking roles at three upcoming conferences over a three-week period on three different – but related – topics.
First, at the upcoming EMMOS (Energy Management and Market Operations Systems) conference being held in New Orleans (September 17-20) Chuck will brief attendees on “Grid Modernization from an Energy Policy Perspective” on Monday, September 18. http://emmos.org/
Two days later (September 20) Chuck will speak in Auburn, Alabama on “Communications Trends in Utility Operations” at the annual “Auburn Conference” (aka the Southeast Distribution Apparatus School and Conference). http://utilitytech.org
On October 4, speaking at the SCADA Technology Summit in Denver, Colorado, Chuck will keynote the conference with a talk on “North American Market Trends and Technology Advances in SCADA, Substation Automation and Protection and Control.” www.scadatechsummit.com
Substation Data Communications Protocol Usage Continues to Find Heavy Reliance on DNP3 in North America
July 18, 2017, Ellicott City, MD. The Newton-Evans Research Company is well underway with its triennial tracking study of change occurring in the world’s electric power substations entitled: The World Market for Substation Automation and Integration Programs in Electric Utilities: 2017-2020. The study will compare the new round of research findings with several earlier substation modernization tracking studies conducted by the company since 1986. More than 75 large and mid-size North American electric power utilities will be participating in this multi-part study, before the focus turns to surveying the International community of electric power utilities in August.
Newton-Evans Research will estimate and forecast the 2017-2020 outlook for North American spending for substation automation and integration programs. Earlier estimates derived from the similar 2013 study stood at $690 million, with an overall potential North American market size of nearly $10 billion. Global potential spending for substation modernization programs had been estimated at about $38-$40 billion. This amount includes spending for a wide range of intelligent substation-resident equipment and devices and the manpower to undertake the systems integration efforts required.
- It is becoming more difficult to separate substation product classifications as equipment manufacturers tout their offerings as “multifunctional” and the product positioning of many intelligent electronic devices now cuts across multiple product classifications.
- The outlook for increased reliance on commercial services providers working in substation modernization activities remains strongly positive. Third party engineering and integration service firms have continued to make significant strides in winning substation automation-related business, from planning to design to construction and to technical equipment installation.
- Utility manpower shortages and funding issues continue to negatively impact the ability of technology supplier companies to engage utilities for other than short-term automation requirements. In states and provinces wherein regulators have approved strong incentives for reliability improvements or for transmission line extensions, the spending outlook is robust, despite a lack of clarity in some energy policy development activities of federal U.S. agencies.
- In general, retrofit substations will be upgraded as warranted during the outlook period, based on regional load growth, load criticality to customers, and related distributed generation and renewables siting developments. New substations will increasingly be designed and constructed as integrated and automated remote assets for the utility. The current study finds the bulk of available substation automation budgets likely to be spent for new substations, with continued emphasis on the bulk power system.
- The use of encryption techniques for transmission of substation data continues to grow, at least for wide area data exchanges between control centers and substations as evidenced by early survey returns received by Newton-Evans. This continues a long-term pattern of increased use of encryption for sensitive data communications between and among intelligent devices within the substation and from the substation to the control center.
Additional topics being covered in the four-volume series of substation automation studies include in-depth coverage of several data communications topics, vendor security certification requirements, external systems linkages to the substation, preferred equipment suppliers, substation timing requirements, and an assessment of how North America’s electric power substations are positioned along a three-step path to complete automation.
Additional information on the North American substation market report, and the other three reports comprising the four-volume study “Worldwide Market for Substation Automation and Integration Programs in Electric Utilities: 2017-2020” is available from Newton-Evans Research Company, 10176 Baltimore National Pike, Suite 204, Ellicott City, Maryland 21042. Phone 1-410-465-7316, email: email@example.com. For a brochure on this series, download our brochure: http://www.newton-evans.com/brochures/2017SSABrochure-June2017.pdf
The Newton-Evans Research Company continues to assess its findings from the firm’s comprehensive 2017 study of EMS, SCADA, DMS and OMS usage patterns among utilities from more than 30 countries.
Current status of Advanced DMS (ADMS)
The Newton-Evans’ survey asked respondents to indicate whether their DMS installation provided SCADA, DMS and OMS functionality together in one user interface and this served as our definition of ADMS for this study.
Overall, 69% of international electric utilities who responded to the survey either currently have or plan to have an Advanced DMS that provides SCADA, DMS and OMS together in one user interface. Thirty-five percent currently have ADMS, and 34% plan to implement ADMS in the near future.
This contrasts with only 9% of North American survey respondents who reported having an ADMS as of the first quarter of 2017. Twenty percent of North American respondents indicated they will have an ADMS by the end of 2019, and another 17% indicated plans for implementing an ADMS sometime after 2019. Overall, 46% of the North American sample either currently has or plans to have an ADMS. Some of the North American sample included “transmission-only” utilities/ISOs.
Continue reading Multi-Part Newton-Evans Research Study Reveals Significant Growth Likely for Advanced DMS Systems and Applications
The latest findings from the Newton-Evans Research Company study of control systems used in the electric power industry point to heavy reliance on IP/MPLS networks for wide area communications from substations and other field locations to central site control systems.
Reliance on IP/MPLS Networks
Sixty-seven percent of international respondents use Internet Protocol/Multi-Protocol Label Switching (IP/MPLS) technology for communication from the substation to the external host/network. Thirty percent use a mix of T1/E1 and/or SONET/SDH and packet networks. It is likely that MPLS-TP (Transport Profile) will see increased use in the next Newton-Evans control systems study scheduled for 2019.
Forty-nine percent of North American respondents use IP/MPLS network technology for communication from the substation to the external host/network. Thirty-seven percent use T1/E1 and 33% use SONET/SDH, followed by 27% who use Carrier Ethernet. Often, more than one type of network is used. Half of North America’s investor owned utilities in the survey continue to use T1/E1, and over half of them use IP/MPLS as well.
Continue reading Newton-Evans Study Finds Heavy Use of IP/MPLS and Continued Reliance on Utility-Operated Telecommunications Networks for EMS/SCADA and DMS Systems