Newton-Evans Research Company, Inc.

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 July through August. 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

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.

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

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?

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…

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.

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).

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 2007-2010.” 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

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

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