Author: Chuck

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2012-2014 Protection and Control Study Released after Five Months of Intensive Research

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

Global Study Finds Continuing Growth in Protective Relay Market with Commitment to Increasing Protection Coordination and Grid Security Practices

 Role of Synchrophasors and Teleprotection Continues to Grow…Providing Better Situational Awareness and Visualization to Help Prevent Outages

April 12, 2012 Ellicott City, Maryland. Newton-Evans Research Company has completed a five-month research study and survey of protective relay usage patterns in the world community of electric power utilities. Findings from more than 100 North American and international utilities, point to some new trends in adoption and use of protection and control techniques.

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

  •  The percentage of digital relays in the mix of all protective relays used by utilities continues to increase.
  •  The vast majority of new and retrofit units being purchased are also 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 healthy pace.
  •  Manufacturers of utility systems protection equipment 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 will become a major application for the emerging field of operational analytics.
  •  Communications protocol usage patterns continue to serve as a differentiator between the majority of large and mid-size North American utilities and their international counterparts.

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

The 2012-2014 study is a series of four reports published this month. 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: 2012-2014 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. Liz Forrest can be reached at eforrest@newton-evans.com .

 

 

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Initial Take on the January 30, 2012 ABB Acquisition of Thomas & Betts

ABB now “Walking in Memphis” with Thomas & Betts, after singing “Georgia on My Mind” with its 2010 purchase of Ventyx and the “Song of Arkansas” for its 2011 acquisition of Baldor Electric.

After ABB’s May 2010 acquisition of Ventyx that now appears to have strengthened its hand somewhat in the control center-based systems market for EMS, SCADA and DMS  (see www.newton-evans.com/?p=646 ), and the company’s follow-on purchase of Baldor Electric Company (Fort Smith, Arkansas), a leader in electric motor manufacturing, ABB has now announced its intent to acquire Thomas & Betts.  T&B is a leading supplier of low voltage gear, and a respectable share participant (via its own recent acquisition of Joslyn Hi Voltage) in the market for medium voltage switchgear.  Among its products serving the utility and construction markets are: digital static transfer switches, integrated systems – dual feed & static switch PDUs, power distribution systems, circuit management, industrial UPS, surge protection devices and power quality services are among its MV/LV products.

Joslyn Hi-Voltage manufactures power transmission and distribution equipment for electric utilities. The company’s offerings include reclosers, sectionalizers, capacitor switches and controls, transfer switches,  distribution automation equipment, disconnect switches, load break switches, underground switches, and VacStat vacuum interrupter monitors.  Fisher Pierce distribution products manufactured by Joslyn Hi-Voltage include Powerflex and AutoCap capacitor controls and Smartset software, faulted circuit indicators (FCIs), line post current sensors, and Smartlink communications.

So, what’s behind the spate of U.S. acquisitions made by ABB over the past 24 months?  Here are four solid reasons that we think support ABB’s strategic and decisive actions:

First, the strategic planners within ABB are certainly looking to strengthen the company’s position in the three related utility-centric markets of power generation, transmission and distribution.  Ventyx has helped with the company’s total array of “smart grid” related offerings with its IT and OT capabilities.  Baldor had provided ABB with additional  inroads to the motor market, and now T&B will provide the company with access and distribution channels for low voltage products, and help fill in product line gaps with its Joslyn HV/MV product offerings.

Secondly, look at the gain in ABB’s access to the construction and industrial segments, both of which may see some upswing by mid-2012.  T&B plays an important role as well in serving the needs of mid-size utilities across the country and to some extent, internationally.  This provides ABB with additional openings into the public power utilities and cooperative utility communities.

Thirdly, I think ABB has correctly identified the “new elephant” in the global electric power marketplace as Schneider Electric.  This acquisition marks the first significant industry reaction to Schneider’s key role around the world in low voltage equipment (as well as some MV offerings by virtue of the division of assets of the former Areva T&D) and Schneider’s extremely well-developed marketing channel strategy.

Fourthly, is ABB’s response to the near-term global economic outlook.  By virtue of its continuing focus on North American acquisitions, ABB is avoiding the as-yet unresolved Euro-crisis in terms of purchase prices and values, and near-term European market outlook.  Coupled with the fact that North American construction and industrial activity will likely pick up the pace this year (given what we have seen thus far into 2012), the acquisition certainly makes sense to me.

As far as downsides to the string of acquisitions, the biggest complaint I have seen among financial analysts commenting in the press for all three acquisitions, is the premium paid for these companies, relative to earnings, market value or recent year revenues.  On the other hand, ABB has the financial resources and the access to capital markets that together enable the company to take these decisive strategic actions to improve its overall market position in North America, and around the world.

–          Chuck Newton

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2011 Ends on High Note . . . With the release of our newest market research study: Data Communications in the Global Electric Power Industry

January 3, 2012 –  Marks the publication launch date for the Newton-Evans’ three-volume study “Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry 2011-2015”

The Newton-Evans Research team has been working on its three volume study of Data Communications Usage Patterns and Trends for Smart Grid over the past several months. We have been successful in obtaining cooperation from more than 100 leading utilities around the world for this major new study.  Discussions with leading equipment vendors, services providers, consultants and analyst colleagues have been completed.

We are pleased to announce that as of January 3, 2012, the three volume report will be available for online ordering via the Newton-Evans website. The report series is priced at $3,750.00 for the complete set.

For the month of January, we are pleased to offer both the well-received 2011 three-volume Smart Grid study series and the three-volume Data Communications series for a total price of only $5,750.00. This is a significant savings and a real value to any smaller-to-mid-size organization now active, or planning to become active, in the development of smart grid for the world community of electric power utilities, ISOs and RTOs. To take advantage of this offer, place your order over the phone by calling us at +1 410 465 7316 or toll free 800 222 2856.

For special pricing information on these and other critically acclaimed Newton-Evans studies published in 2010 and 2011, please call Khrissy Newton at 410-465-7316.

New Studies Underway
1) The acclaimed series of protective relay studies (now in its tenth edition) is formally underway. Look for progress updates on  the Newton-Evans’ website during January. This is another of Newton-Evans’ multinational studies with participation from each world region, involving more than 25 countries, anticipated.

2) A current study of Automatic Generation Control practices among ISOs/RTOs and large utilities is in progress and will be finalized during January.

3) The “To the Point” series of short, concise reports on more than 75 T&D topics is now underway, with monthly releases of 5-7 reports expected during 2012.

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Economic Outlook Revamped Again: Its Effect on “Smart Grid – A Reality Check”

Further news on the economy and its relationship to smart grid developments came from two sources in early November:

(1) The U.S. Federal Reserve Statement; and (2)  the Continuing Eurozone Crisis;

See “Chuck’s Composite” page for our take on these developments and their likely effect on the Newton-Evans latest “Smart Grid – A Reality Check” study outlook. At year-end we will have a region-by-region and country-by-country update for each of 20 smart grid categories.  The update will be sent to all 2011 clients for the “Smart Grid- A Reality Check” series.

 

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Brochures For 2011-2012 Reports Series Now On Line

We wanted to make it easy for our readers, clients and visitors to locate brochures for the various report products we have made available and are currently developing in-house. Three very current topics are the multi-client focal points for us at this time: Protective Relaying; Utility Data Communications for the Smart grid; and, Smart Grid Outlook-A Reality Check.

Note that the protective relaying study series and the data communications study series brochures offer pre-publication pricing through mid-November.

We will soon be placing the brochure for the upcoming T&D infrastructure series of 92 topical “to the point” report summaries online as well.

Here are some brochures (opens as .pdf)
Global study of protective relays

Global Utility Data Communications Report Series

Smart Grid: A Reality Check report series

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Year-End Update Planned for the Smart Grid Outlook Report Series

A major update to the near-term and mid-term outlook for Smart Grid spending provided in volume 3 of the Newton-Evans study: The Worldwide Smart Grid Market in 2011: A Reality Check and Five Year Outlook Through 2015 is being prepared for late fourth quarter release to report series clients.

Subscribers to the recently completed three volume study of global smart grid activities will be receiving a further revision to the Newton-Evans’ outlook for smart grid spending in December. The update will be based on the ongoing research and between- the-lines assessments of fresh economic data released recently by the European Bank for Reconstruction and Development and the Asian Development Bank.

Please see Chuck’s Composite page for the detailed write-up of the latest outlook news from two key international non-governmental energy financing and project organizations (European Bank for Reconstruction and Development and the Asian Development Bank).

Please take note that this report series has met with very good market acceptance by our clients. We welcome additional clients for this series while the content and outlook is current. The outlook information will be kept up to date for clients as fresh world regional economic and financial news dictates over the coming year. Chuck’s Composite page is available to all visitors to read the latest on our economic findings and market observations affecting smart grid and smart energy developments.

The smart grid reality check report series can be ordered here

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Newton-Evans to Prepare and Publish 92 T&D Infrastructure and Smart Grid Market Briefs During December 2011-June 2012

Newton-Evans Research to publish a new series of 92 North American market overview briefs on key segments of T&D Equipment and Automation Systems

Market briefs available beginning in December 2011 will include relevant summary profile information on a wide range of equipment, systems and services

Click here for more details and a listing of report topics

With more than 30 years of in-depth industry studies behind our 2012 planning efforts, we believe that now is the time to compile to-the-point individual market segment report summaries to assist North American industry planners coping with an uncertain, but cautiously optimistic, outlook for the 2012-2015 periods.

We are encouraging our clients to assist us in prioritizing our publication roll-out for these market briefs and to inform us if we are overlooking any product, system or services area of interest.

A listing of all 92 research topics is available upon request to Newton-Evans Research Company.

 

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Interoperability and Open Protocols Rank as Key Determinants for Utility Data Communications Plans

Initial Findings Depict Newer Data Communications Technologies and Services Being Adopted by World’s Electric Power Utilities

The brochure describing this multi-volume study can be found on our BROCHURES page  http://www.newton-evans.com/?page_id=1258.  Note that as of October 25, 100+ utilities from North America and more than 20 international countries have participated in the survey portion of the study.

The Newton-Evans Research Company has released initial findings from its extensive research program looking into electric power utility use of various telecommunications technologies and plans for adding capabilities to meet the requirements of the emerging smart grid. The ongoing research program is titled “Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry: 2011-2015.”

 

With more than 45 of the world’s leading utilities having joined the study as of October 5, here is a summary of a few key observations at the mid-point in the study:

AMI Projects: While power line carrier technology led in mentions of data communications technologies being used for at least some portion of meter communications, nearly one-third reported having no plans for AMI deployments at this time and 20% were undecided about their eventual choice of AMI communications methods.

Plans for connecting smart and advanced meters to the utility’s telecommunications network varied, with 36% saying they had no such plans. Just over one quarter cited use of public cellular services, 24% reported some use of RF mesh networks, and 13% reported use or plans to use point-to-multipoint radio. Many utilities are now taking a “wait and see’ attitude toward AMI with regulatory decisions not yet rendered in several states and international regions. There is still a good amount of discussion over AMI benefits, costs, communications approaches, data ownership, as well as meter data management and consumer privacy issues.

Interoperability and Open Protocols: One question group in the Newton-Evans’ survey measures the level of agreement or disagreement with 11 statements related to communications issues that were contributed by suppliers and utilities: (interoperability, SLAs, Industry Pace of Change, open protocols, synchrophasor use, and others). Among these topics, two have received strong indications of “agreement” among survey participants thus far along in the study. These are: interoperability being important to the utility, and the use of open protocols providing a “degree of protection from premature product obsolescence.

IP and Smart Grid Communications: The majority of respondents to date concur on the notion of using IP for all smart grid communications. However, 20% of the initial group indicated that they do not support standardizing on the use of IP for any SG communications.

Communications for Distribution Automation: Distribution Automation (DA) is a key component of smart grid. For DA, 40% of utilities surveyed to date use licensed point-to-multipoint communications, and thirty-eight percent use unlicensed point-to-multipoint. Numerous other technologies and approaches to DA communications were also mentioned including cellular, POTS, frame relay, paging, GPRS, fiber, leased lines, and private fiber-based Ethernet.

Responding utilities are also providing input on related DA questions: “Which communication technologies do you use for DA backhaul?” and also asked “Which DA communications network technology do you think will be dominant at your utility 3 years from now?” including reasons why a specific DA Backhaul technology is dominant at this time.

Smart Grid Communications: The study includes feedback sections on communications plans for five key smart grid component areas. Findings will be further detailed by world region and by utility ownership type and size. The three volume study is priced at $4,250.00, and can be ordered online and downloaded from the Newton-Evans web site from November 1, 2011 onward. Pre-publication report orders will be granted a $500.00 discount.

Spending on Utility Telecommunications: Earlier studies conducted by Newton-Evans Research estimated the total value of telecommunications expenditures in the global electric power industry at about $13 billion per year. About $5.4 billion of this total was allocated for data communications.

Public versus Private Networks: The debate on private versus public ownership of utility telecommunications networks is not going to end soon, based on findings reported here. It seems entirely likely that a majority of electric utility networks in North America and several international regions will remain essentially private, supplemented by the prudent use of commercial network services for less critical activities.

Additional information about the three volume report: Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry: 2011-2015 can be found in the Newton-Evans Research Company’s MARKET TRENDS DIGEST (Third Quarter 2011 edition can be viewed at www.newton-evans.com, or eforrest@newton-evans.com), or by telephone at 1-800-222-2856. Newton-Evans Research Company is located at Suite 204, 10176 Baltimore National Pike, Ellicott City, Maryland 21042.

The brochure describing the study can be found on our BROCHURES page  http://www.newton-evans.com/?page_id=1258.  Note that as of October 25, 100+ utilities have participated in the study.

Be sure to check “Chuck’s Composite” page for a late October update column!

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Newton-Evans Research – Active Participation at Several Upcoming Conferences:

Over the next few months, Newton-Evans Research CEO Chuck Newton will be briefing attendees at several conference sessions and participating in a GRIDWEEK panel.  Conference web sites can be found on our ENERGY INDUSTRY CONFERENCES page. Here is the current agenda for the company’s event participation through January 2012

Conference:  GRIDWEEK 2011
Location:  Washington D.C. (Convention Center)
Session:  Utility Analytics Panel (with Energy Central)
Date:  Tuesday, September 13, 2011
Time:  7:00am-8:30am

Conference:  EMS USER GROUP Annual Meeting
Location:  Philadelphia, PA (Doubletree Hotel)
Session:  Briefing on EMS and Control Room Trends
Date:  Monday, September 19, 2011
Time: 09:30-10:15am

Conference:  REMOTE 2011 Conference
Location:  Nashville, TN (Gaylord Opryland Hotel and Convention Center)
Session:  Keynote Address:  Technology Transfer in SCADA Using Industries
Date:  Tuesday, September 20, 2011
Time:  09:30-10:15am

Conference:  DISTRIBUTECH 2012
Location:  San Antonio, TX (Convention Center)
Session:  UU 211 – Communications Systems and Networks in Today’s Utility Operations: An Overview of Methodologies, Network Design Considerations, Challenges and Priorities for Smart Grid Communications
Date:  January 23, 2012
Time:  08:00am-12:00pm

Conference:  DISTRIBUTECH 2012
Location:  San Antonio, TX (Convention Center)
Session:  Global Outlook for Smart Grid and Supporting Communications Infrastructure: Trends and Investments: 2011-2015
Date:  January 24, 2012
Time:  1:00pm-2:30pm

Conference:  DISTRIBUTECH 2012
Location:  San Antonio, TX (Convention Center)
Session:  Trends in Protection and Control: Global Findings and Outlook for 2012-2014
Date:  January 25, 2012
Time:  1:30pm-3:00pm

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Schneider Electric and Telvent: Climbing the Global Smart Grid Ladder . . . and Moving Up Fast!

Initial Impressions – By Chuck Newton

 

Overall, given the first impression of this prospective corporate marriage, I think that the proposed acquisition of Telvent by Schneider rivals the importance of ABB’s acquisition of Ventyx.  In some ways it overshadows that 2010 event.  Here’s why:

Schneider is a very large (about $30 billion USD) French-based global corporation headquartered in Rueil-Malmaison, a near-in suburb located just to the west of Paris.  The company has recently grown fairly well organically and with a number of strategically well-thought-out acquisitions, including the very visible “AREVA D”, Areva’s medium voltage equipment and systems business, which acquisition was finalized in mid-2010.  That acquisition provided the basis for Schneider’s formation of a fifth business sector – “Energy”, reported separately as a line of business for the first time in the company’s 2010 annual report.

However, the Areva D buy-in was just one more drop (albeit a large drop) in the growing bucket of acquisitions recently completed by Schneider Electric.  During the past 24 months, the company has acquired the Persian Gulf’s CIMAC (an industrial systems integrator), the SCADAgroup (Australian control systems supplier), Electroshield-TM Samara, (Russia’s largest producer of MV electrical equipment), Conzerve (India-based supplier of industrial energy management schemes) and Microsol Tecnologia (Brazilian supplier of power conditioning equipment); Uniflair SpA, (Italian manufacturer of precision cooling equipment).  Schneider further strengthened its hand in building automation and energy efficiency systems with its acquisitions of two French firms, Vizelia (energy management software for commercial buildings) and D5X, specializing in space utilization of commercial buildings.

 To continue reading this article in its entirety, jump to Chuck’s Composite page: http://www.newton-evans.com/?page_id=799

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April Release of Global CAPEX/OPEX Tracking Study Finds Increased 2011 CAPEX and O&M Budgets Planned for Several Smart Grid-Related Automation and Infrastructure Categories

Utility CAPEX/OPEX Report Published with Results of First Quarter 2011 Newton-Evans Study of Electric Power T&D Investment

Ellicott City, Maryland – April 4, 2011. The Newton-Evans Research Company today announced the publication of its fourth 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 first quarter 2011 Newton-Evans global tracking study of electric power transmission and distribution investment remain positive, comparable with the three earlier tracking studies conducted in 2008, 2009 and 2010. Each of five smart grid component areas, plus transmission and distribution infrastructure development, has been reported by utilities located in 28 countries to more likely be either “increased” or “unchanged” rather than “decreased” from the 2010 study. The highest percentages of officials reporting increases were in the areas of substation automation and energy management systems. See Figure 1.

Continue reading April Release of Global CAPEX/OPEX Tracking Study Finds Increased 2011 CAPEX and O&M Budgets Planned for Several Smart Grid-Related Automation and Infrastructure Categories

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First Quarter 2011 Market Trends Digest Packed with New Research Findings. Now Available on-line!

Here is our first quarter line-up for our thousands of readers of “MTD” from around the world

Market Trends Digest – The “Dean” of smart grid Journals
The Newton-Evans team has developed the articles for the 1st quarter 2011 edition of one of the earliest and most widely praised smart grid journals – Market Trends Digest – launched in 1991 and continuing to add readers in 2011.

CAPEX 2011
The new Market Trends Digest edition features highlights from our new 1st quarter 2011 study of spending on smart grid components from around the world. The 2011 CAPEX study will also be available shortly – on 1 April – with many pre-publication subscribers eager to review this report, the fourth in our “tracking” series of informative planned spending reports on smart grid.

2011 Substation Automation Research Series
Next is an in-depth article of highlights from our newest studies of substation automation. The 2011-2013 study series contains four volumes of research, and is available for purchase on the web site, by email request, or by telephoning the Newton-Evans staff. The series has been well-received by the initial round of subscribers and sponsors.

IEC 61850: Is It Finally Coming of Age in North America, Or Not?
The next three articles cover new findings for projecting North American acceptance of IEC 61850. Titled “The Future Role of IEC 61850”, this article documents some of the progress finally being made with regard to this international standard.  Next, we identified several North American regional
“centers of excellence” when it comes to IEC 61850 developments as highlighted in the second of the 61850 articles. Finally, a profile of one of the larger G, T&D services companies leading the 61850 charge with extensive training, testing and support services – Toronto-based Kinectrics, Inc.

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Preview our Research Topics – Plans for 2011

***************  2011 Plans Announced  ***************

We have outlined an aggressive research agenda for the coming year, based on fourth quarter 2010 discussions with our clients and industry contacts:   Of course, we will also concurrently be conducting multiple proprietary studies for clients old and new on many electric power infrastructure and automation topics. 

The Newton-Evans’ multi-client study topics and report prices for the coming year include:

First Quarter:  2011 Annual Outlook for CAPEX and OPEX in the World’s Electric Utilities.  (Fourth Edition) (Price:  $495.00)

Second Quarter:  The Worldwide Smart Grid Market in 2011: A Reality Check and Five Year Outlook Through 2015: Four Volumes: (Price:  $3,750.00)

Third Quarter:  Global Study of Data Communications Usage Patterns and Plans in the Electric Power Industry:  Four Volumes (Price: $4,500.00)

 Fourth Quarter:  8th Edition of The Worldwide Study of the Protective Relay Marketplace in Electric Utilities: 2011-2013: Four Volumes (Price: $5,750.00)

 Other Titles Likely (as resource availability permits): 

 IEC 61850 in North America….Gaining Traction?

 Global Outlook for Synchrophasor Programs: 2011-2015

Demand Response:  North American Market Outlook: 2011-2015

T&D Equipment Markets in North America: 2010-2015

*******  Cautious Optimism remains the byword to the outlook for 2011-2012!

See Chuck’s Composite viewpoints at http://www.newton-evans.com/?page_id=799

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“2010 U.S. Smart Grid Vendor Ecosystem” The new DOE Report Substantiates Newton-Evans’ Findings and Insights

Newton-Evans Research studies and findings have figured prominently in domestic U.S. energy policy reporting and analysis over the past decade and longer. This time, the U.S. Department of Energy’s latest smart grid publication titled 2010 U.S. Smart Grid Vendor Ecosystem authored by the San Francisco-based firm The Cleantech Group LLC includes a substantial amount of Newton-Evans’ recent research findings.

More than a dozen Newton-Evans charts depicting the firm’s recent findings on substation automation, distribution automation, energy management, SCADA systems, communications and CAPEX topics form an integral part of this newly released 91 page report on the companies and market dynamics shaping the current U.S. smart grid landscape.

In the acknowledgments (page 18) of the Cleantech report the authors state:

“We would like to thank Chuck Newton, from Newton-Evans Research, whose work is referenced in numerous sections of this report for his contributions and insights into the market particularly around distribution and substation automation….”

The new DOE report can be downloaded here: http://www.energy.gov/media/Smart-Grid-Vendor.pdf

Over the past 18 months, Newton-Evans reports have figured prominently in the U.S. government’s intensive investigation into the potential of the development of the smart grid. Our company’s findings have been used or referenced in congressional hearings and reports as well as serving as the basis for the recent report produced by Idaho National Labs titled: National SCADA Testbed Substation Automation Evaluation Report.

This substation automation evaluation used research conducted by Newton-Evans Research Company for some of its observations and results. The Newton-Evans Report aided in the determination of what is the state of substation automation in North American electric utilities. Idaho National Laboratory cyber security experts aided in the determination of what cyber vulnerabilities may pose a threat to electrical substations. This report includes cyber vulnerabilities as well as recommended mitigations. It also describes specific cyber issues found in typical substation automation configurations within the electric utility industry. National SCADA Testbed Substation Automation Evaluation Report, released in October 2009, can be downloaded here: http://www.inl.gov/technicalpublications/Documents/4374057.pdf

An additional 2009 report from INL entitled Study of Security Attributes of Smart Grid Systems – Current Cyber Security Issues provides good coverage of key cyber security issues confronting smart grid systems and components. Reference to Newton-Evans’ collaboration with INL on substation automation cyber security research is noted in this report. The study can be downloaded here: http://www.inl.gov/scada/publications/d/securing_the_smart_grid_current_issues.pdf 

On the international scene, Newton-Evans has recently conducted worldwide surveys of power utility engineering managers that have proven useful in providing guidance for CIGRE working groups on topics including wireless (Wi-Fi) Protected Access for Substation Protection and Control (WG B5.22)and for The Impact of Implementing Security Requirements for IEC 61850 (WG B5.38).

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Measuring the Impact of GE Energy’s Acquisition of SNC Lavalin ECS Business Unit

August 2, 2010. Well, it was inevitable that GE would make a play for a larger share of the global EMS/SCADA/DMS market and today the company announced the acquisition of the Montreal-based Energy Control Systems business unit of SNC Lavalin. With this acquisition, Newton-Evans believes GE Energy now ranks fourth in the world in terms of numbers of significant energy management, large SCADA and large distribution management systems. Note that the “GENe” name of the ECS’ offerings might just be an added plus!

A few quick facts about the impact of this acquisition:

Continue reading Measuring the Impact of GE Energy’s Acquisition of SNC Lavalin ECS Business Unit

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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

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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.

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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

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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?

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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.