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

The Newton-Evans Research Company has published its report of findings from its just-completed study of EMS, SCADA, DMS and OMS usage patterns in North American electric power utilities. This is the first release of the company’s four component reports of its 14th global market assessment series on operational control systems, conducted since 1984.

Here are some observations based on interviews and surveys with 68 utility participants from across North America:

Almost one-half of all survey respondents (46%) 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 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 23 others will have an ADMS in the near future. Importantly, of the 29 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 Operations, while about one-third 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.

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 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

by Editor on 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 party consulting services in the areas of metering, OT and NERC CIP compliance
  • Observations on the Metering, AMI and related Telecommunications Market

We look forward to sharing more energy industry market intelligence in 2017.

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 from a broad range of U.S. electric utilities:

  • Plans call for upgrades or retrofits to SCADA and OMS systems among a large percentage of these utilities
  • 20% of utilities sampled plan to purchase a new or replacement DMS. 30% indicated that they have or plan on having an Advanced DMS by year-end 2019.
  • Nearly one-half of the respondents reported having real-time linkages in place between SCADA and outage management systems.
  • 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 most of these utilities.
  • The major use of analytics tools is in outage management activities such as fault location determination.
  • More topics surveyed in this new study include: 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, DMS applications usage patterns.

    There have been some changes over the last few years in utility organizations with respect to control system support staff. IT departments are now the principal support group in nearly one-third of utilities sampled so far, while 47% report the “OT” organization continuing as the primary support unit. Eighteen percent indicated that both IT and OT staff share responsibility for supporting control systems. See Figure 1.

    The types of networks used for data communications from the substation to the control system vary widely, with most utilities reporting use of multiple networks for the mix of data acquisition requirements. See Figure 2.

    The North American market report is one of four volumes being produced for the company’s fifteenth 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 during the first quarter of 2017.

    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. For readers interested in purchasing this new series please call or email info@newton-evans.com for special introductory pricing.

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 the world community of electric power utilities. Findings from 114 large and md-size utilities in 28 countries point to some newer trends in adoption and use of protection and control technology.

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

  • Most new and retrofit relay units being purchased are 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 moderate pace that exceeds many other categories of electric utility investments for grid modernization.
  • Manufacturers of protective relays 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 is becoming a major application for the emerging field of operational analytics.
  • Communications protocol usage patterns continue to serve as a key differentiator between large and mid-size North American electric utilities and their international counterparts, as shown in the accompanying chart.

The 2016 Newton-Evans survey of electric utilities includes more than 20 detailed product functionality topics, related technical questions, and market-related issues, together incorporating more than 250 data points of information from each of the participating utilities.

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 Email: info@newton-evans.com or visit our website for additional information:
http://www.newton-evans.com/relaymarketplacestudy2016-2018

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