Category: Supply Chain

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Part Two: A Look at Major Substation Component Equipment – Excerpts from the 2024-2026 Market Overview Series on Substation Automation

The 2024-2026 edition of Market Overview for Substation Automation includes 14 topical reports on modern substation components.  This month’s article presents some highlights from 7 more of these market overview reports. In May, we provided another seven summaries of modern substation components.  Read the article that follows below this article for that information.

More information on the entire 14-report series of substation automation components can be found here: https://www.newton-evans.com/product/overview-of-the-2024-2026-u-s-transmission-and-distribution-equipment-market-substation-automation-series/.  The complete 2024-2026 series is priced at $1,450.00, with individual 3-5 page report summaries available for $195 per report. Each report provides component definitions, revenue estimates of key suppliers, market share assessments, outlook through 2026, and revenue split between sales to utilities and commercial-industrial buyers. 

Sequence of Events Recorders: A sequence of events recorder (SER) is an intelligent standalone microprocessor-based system, which monitors external inputs and records the time and sequence of the changes occurring with any substation activities. Sequence of events recorders usually have an external time source such as a GPS or radio clock configured with Precision Time Protocol (PTP). When wired inputs change state, the time and state of each change is recorded.

SERs enable rapid root cause analysis after multiple events have occurred due to the secure recording of the sequence of events in the order of occurrence. SERs are therefore utilized as a diagnostic tool to minimize plant downtime. SERs are often interfaced with a SCADA system, distributed control system (DCS),or programmable logic controller (PLC). (Per Wikipedia).

Our shorter definition is: a sequence of events recorder is a microprocessor module within the electric power substation that logs time-stamped events. The SER functions can also be performed by other smart substation devices such as multi-function meters and recorders. 

The total utility substation market for dedicated, stand-alone SOE/SER units is in decline due to the inclusion of SOE/SER functionality in other smart substation devices and systems. However, the decline among utility users is being offset by the application of SOE/SER devices among non-utility DER asset owners and operators, hence our outlook is for low-to-moderate growth over the mid-term years.  See report SA08 for detailed information.

Power Quality Recorders: A power quality recorder (PQR) is a microprocessor module that most often is located within the substation that provides and enables regulatory power quality application, measurement, comparison, and profiling of power quality parameters at the individual electrical system interfaces: (e.g. generation, transmission, sub-transmission and distribution system levels). Source: Siemens Corporation.  Substation-based PQ recorder sales have plateaued in recent years as single functions (like recording) tend to become one function of a multi-functional “system-like” instrument.  Non-utility DER assets will likely procure power quality monitors to track power quality being produced by their generation assets prior to uploading to transmission lines.  It is difficult to separate out specific units that ONLY perform power quality recording, so the authors are attempting to allocate costs back to the specific PQ function being studied.  See report SA 09 for detailed information.

Reclosers: An Automatic Circuit Recloser (ACR) is a medium voltage circuit breaker equipped with a mechanism that can automatically close the breaker after it has been opened due to a fault. The market size estimates below include 1phase and 3phase hydraulic units, which category continues to represent as much as 17%-24% of the total recloser business in the U.S. Key factors influencing demand include:

  • Aging and obsolescence of installed base of older reclosers
    • Regulatory decisions on reliability improvements mandated
    • DMS installations and growth in DA activities will likely spur additional ACR installations
    • Utilities represent the bulk of the recloser market – 90%+ of total demand. Substations using recloser technology typically will have four units installed.
    • Customer density and feeder length both affect system protection choices (reclosers versus fuses or sectionalizers).
    • Ease of installation, maintenance-free operation, visual break and SCADA connectivity

See report SA10 for detailed information.

Substation Communications devices include Ethernet switches, hardened routers, teleprotection comms equipment, serial device servers and media converters. Key U.S. market participants in this multi-hundred million dollar market include CISCO, SEL, Siemens, Belden, GE Vernova, ABB and Hitachi Energy, along with many other suppliers of these devices.  See SA12 for details on this market.

Voltage Regulators: A voltage regulator (VR) is an electrical device designed to automatically maintain (regulate) a constant voltage level. VRs may use an electromechanical mechanism, or passive or active electronic components. Depending on the design, it may be used to regulate one or more AC or DC voltages. This overview provides information only on substation-based single and three phase VR units. The larger portion (60-70%) of the total VR market is for single phase units placed along MV feeder paths. In both applications, VRs are often paired with power capacitors

Electric utilities also use mechanical automated units (AVRs) to adjust voltage levels as loads fluctuate on each feeder in an MV distribution network. MV AVRs are basically transformers with multiple taps used to change the turns ratio and thereby alter output voltage. A voltage regulator may be a simple “feed-forward” design or may include negative feedback control loops. It may use an electromechanical mechanism, or electronic components. Depending on the design, it may be used to regulate one or more AC or DC voltages.

In an electric power distribution system, voltage regulators may be installed at a substation (1p/3p) or along distribution lines (1p) so that all customers receive steady voltage independent of how much power is drawn from the line. The DA portion of the VR market is primarily for automated control of single-phase units installed along MV distribution lines.  See report SA13 for detailed information on the substation voltage regulator market.

Substation Timing Synchronization Devices/Clocks: Special clocks used for precise timing indications for improving grid reliability, gaining a better understanding of the power system operation, predicting and preventing systems-wide faults, and testing and verifying operation of protective devices. (Source: http://www.arbiter.com/news/technology.php?id=4)

Similar to the findings obtained from equipment manufacturers in a major Newton-Evans study of timing synchronization, IRIG-B was the most frequently mentioned timing reference used by

U.S. utilities as recently as 2014, as cited by 87% of a survey sample comprised of 30 US electric power utilities. NTP (37%) and direct GPS signals (30%) were mentioned as the next most important references. IRIG-B continues to be widely used in mid-2024.

In that same referenced Newton-Evans study, 21% indicated that their utility would be specifying Precision Timing Protocol (PTP) Standard IEEE 1588 within five years for use as the substation timing references. One utility had already begun standardizing on the PTP standard. Importantly, as American utilities migrate to IEC 61850, time synchronization becomes ever more critical to reliable operations.  Much of the increase in demand for timing synchronization devices is a result of the proliferation of synchrophasor measurement units across North America.  The North American Synchrophasor Initiative (NASPI) provides a great deal of information on their website here https://www.naspi.org/ .

More than 80% of US utilities have recently indicated that they rely on a stand-alone clock for embedded GPS. The utility industry’s migration to Ethernet and IP-based telecommunications to/from substations will likely include a changeover from “legacy” approaches (typified by IRIG- B) to IEEE-1588 to enable more precise network monitoring and sequence of events recording.  See report SA14 for details.

Substation Automation Integration Specialists are firms (or corporate business units) that can assist with or provide a full or partially automated substation on a turnkey basis. Such firms include dedicated businesses such as listed in the SA platforms report SA03 (NovaTech, SEL Automation Services, Subnet Solutions, Eaton-Cybectec), or can be business units of larger companies engaged in the electric power automation business as EMS/SCADA suppliers, RTU manufacturers or protection and control specialists.

Three “tiers” of substation integration providers are included in our assessment:

  • Specialist substation automation integration services
    • SCADA /P&C industry participants with substation devices (RTUs, FEPs, Relays, IEDs, platforms) offering substation integration expertise
    • T&D Engineering Services firms with substation integration expertise

See report SA11 for information that describes the substation automation integration specialist companies in each tier along with revenue estimates for each tier.

We hope you enjoy reading this summary of market information on substation components.  In July, we will provide readers with part one of a two-part series describing high voltage substation equipment as used in the United States.

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A Look at Major Substation Component Equipment – Excerpts from the 2024-2026 Market Overview Series on Substation Automation

The 2024-2026 edition of Market Overview for Substation Automation includes 14 topical reports on modern substation components.  This month’s article presents some highlights from 7 of these reports. In June, we will provide another seven summaries of modern substation components.

More information on the 14-report series of substation automation components can be found here: https://www.newton-evans.com/product/overview-of-the-2024-2026-u-s-transmission-and-distribution-equipment-market-substation-automation-series/.  The complete 2024-2026 series is priced at $1,450.00, with individual 3-5 page report summaries available for $195 per report. Each report provides component definitions, revenue estimates of key suppliers, market share assessments, outlook through 2026, and revenue split between sales to utilities and commercial-industrial buyers.

Remote Terminal Units: A Remote Terminal Unit is a microprocessor-controlled electronic device that interfaces objects in the physical world to a distributed control system or to SCADA by transmitting telemetry data to the system from substation-based RTUs and pole-top- installations, and by using messages from the supervisory system to control connected objects. RTUs are evolving into substation gateways, controllers and servers, depending upon the manufacturer and the application/intended use. See the separate report on substation automation platforms – (SA01 in this series). 

Programmable Logic Controllers (PLCs) are microprocessor-based devices used to control industrial processes or machines. They provide advanced functions, including analog monitoring, control and high-speed motion control as well as share data over communication networks. During the 1980s and 1990s, hundreds of units were sold annually for use in electric power substations, led by Schneider’s Modicon and Allen-Bradley.  Programs to control machine operation are typically stored in battery-backed or non-volatile memory. A PLC is an example of a hardened real time system since output results must be produced in response to input conditions within a bounded time, otherwise unintended operation will likely result.

PLCs are designed for multiple inputs and output arrangements, extended temperature ranges, immunity to electrical noise, and resistance to vibration and impact.  Programs to control machine operation are typically stored in battery-backed or non-volatile memory. A PLC is an example of a hardened real-time system since output results must be produced in response to input conditions within a bounded time-frame, otherwise unintended equipment operation will/may result.  SA02 in this series.

Substation Automation Platforms: A substation automation platform is a substation-resident computing platform that includes some sort of hardware architecture and a software framework (including application frameworks) that may better classify the platform as a gateway, an automation controller or a data concentrator. A single programmable automation platform can perform an expanding array of communications, automation, control and cyber security functions in the electric utility substation.

SEL’s RTAC and 2032 units are quite strongly represented as of mid-year 2024, especially in mid- size cooperatives and municipal utilities. Together with NovaTech’s ORION along with Eaton’s Cybectec and GE’s older D400 (now replaced with the G100/G500 offerings) have been long- term participants in development and provision of substation automation platforms. These four firms accounted for nearly three-quarters of the 2023 market. The larger global firms are also active as noted in the table below. Note that substation platform providers may also provide complete substation modernization consulting and engineering services and can provide project management for large automation/modernization projects. Note too that some feature-rich, smart RTU equipment also serve as substation automation platforms.  Revenue for these advanced RTUs is not included here.  Newton-Evans estimates for substation automation platform sales in 2024 were in the $125-175 million range.  SA03 in this series.

Multifunction Meters and Recorders: Substation Multifunction Meters, Panel Meters and Recorders are units that can display substation data locally and/or transmit substation data back via RTU or SS controllers and platforms to SCADA and energy management systems. Panel meter sales had plateaued by the early 2000’s, as the functionality of these meters could by then be duplicated by digital relays. However, due to cyber security issues, operational complexity and visualization issues, panel meters are making somewhat of a comeback and finding their niche support base growing once again. Measurements of energy consumption and power quality are among the key attributes of leading multifunction meters and recorders. Waveform capture, harmonics, and alarm limits are also recorded in advanced multifunction meters and recorders. I/O capabilities are provided in these devices for communicating with SCADA and related energy monitoring systems.  Newton-Evans estimates for sales of multifunction meters and recorders 2024 are in the $65-90 million range.  See SA04 for more information on meters and recorders.

Substation Inter-Utility Revenue Meters are metering products capable of collecting and storing incoming and outgoing substation power flows by performing various measurements. The devices are sold in the low thousands of units annually. As the role of distributed generation resources increases across the U.S., there will likely be a need for additional inter- utility and DER provider-to-utility revenue meters.  See SA05 for more information.

Digital Protective Relays: A digital protective relay uses a microcontroller with software-based protection algorithms for the detection of electrical faults. Such relays are also termed as microprocessor type protective relays. As renewable energy sources grow in importance, the need will grow for system protection and control for solar, wind, and other renewable energy installations. New relay designs or adaptations of existing protective relays will be developed to meet the requirements for thousands of DER applications during the remaining years of the 2020’s.  There are opportunities for protective relay managers to work directly with renewable systems developers (such as Pure Power Engineering, Trimark, among several others).

The Hubbell acquisitions of RFL Electric just a few years ago, and more recently, the company’s acquisition of Beckwith Electric are harbingers of additional acquisitions of existing smaller independent relay manufacturers likely to occur over the mid-term.  These will likely include international manufacturers in the mix.  See report SA06 for more information.

Digital Fault Recorders: A digital fault recorder is a microprocessor device level module installed within the substation (or industrial location) that records electric power faults. DFRs are more capable than are power disturbance monitors, which also provide some level of information on electric power faults. Disturbance monitoring equipment (DME) tend to be lower-cost and easier to install and use than are DFRs. DME also provide information on several power fault components and can be used for some root cause analyses.  Special purpose, dedicated DFR units tend to have performance features and capabilities that go beyond the increasingly popular relay-centric approach to fault recording. This portion of the DFR market was about $30-$40 million as of 2021.  Relays are increasingly being used to provide basic fault recording and sequence of events recording functions as a lower-cost alternative for fully-featured DFRs from the leading U.S. providers. Perhaps $15-25 million of relays applied to this function. 

Newton-Evans believes that there will be some level of growth in use of dedicated DFR technology due to the continued deployment of synchrophasor technology across the United States. As well, the increasing demands from regulatory authorities for precise electric power fault information and root cause analysis will affect the increase in use of DFRs and related equipment (including IEEE 1588-compliant clocks).  See report SA07 for more information.

Be sure to check in with our site next month for coverage of another seven components of modern digital substations.