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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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Progress Report on Newton-Evans Smart Grid Outlook Research Program

In April, 2011, we began a significant undertaking to learn the latest information about the “real world” of smart grid development initiatives among the nation’s and the world’s electric power utilities. We hope to better understand the shape of the demand curve for smart grid initiatives once the multi-billion dollar government stimulus funds already awarded become depleted. What will the domestic follow-on look like? Will new funding come from utilities, the public, the industry’s solutions providers, or one or more levels of government? Will collaborative efforts shorten development and piloting cycles?

Click here to read more.

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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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Sale: 15% Off Two Major Newton-Evans Studies

Through March 31st, Newton-Evans will be taking 15% off all volumes of the following report series:

  • The World Market for Substation Automation and Integration Programs in Electric Utilities: 2011-2013

  • The World Market Study of SCADA, Energy Management Systems and Distribution Management Systems in Electric Utilities: 2010-2012

See our Market Research Reports page for pricing or to order either of these reports during the sale.

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Increases in Substation Related Automation and Integration Program Spending Reported by North American Electric Power Utilities

The Newton-Evans Research Company has released findings from the North American volume of its newly published four volume research series entitled: The World Market for Substation Automation and Integration Programs in Electric Utilities: 2011-2013. The new study compares the current round of research findings with earlier tracking studies conducted by the firm.

Newton-Evans Research estimates the current North American spending for substation automation and integration programs at more than $500 million, with an overall potential market size of nearly $10 billion. Global potential is 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.

The years 2008-2009 were slow growth – or at best moderate growth – years in most categories of intelligent electronic equipment sales related to the modern, increasingly digital, electric power substation. Fewer retrofit programs were undertaken except for the most critical of substations. The pool of funding for substation automation projects increased somewhat by virtue of a portion of the stimulus funds made available by the U.S. Department of Energy, with most of this amount likely to be spent in 2011-2012.

Additional topics being covered in the four volume series of substation automation studies include strong coverage of multiple communications topics, vendor security certification requirements, external systems linkages to the substation, preferred equipment suppliers, and an assessment of where North America’s electric power substations are positioned along a three-phase path to complete automation.

Level of automation of substations reported in North American survey sample
transmission substations automated

distribution substations automated

Respondents indicated a total of 1,567 transmission substations and 5,154 distribution substations in operation as of the 4th quarter of 2010. These represent a 9% sample of U.S. and Canadian combined totals of transmission voltage substations and nearly 10% of all distribution voltage substations.

It seems surprising that as of 2010, there were significant numbers of transmission substations reported to have no IEDs and no automation, although retrofit programs over the 2011-2013 period will likely improve the status of more than one-half of those currently non-automated substations.

Of 5,154 distribution substations in operation at participating utilities, nearly 36% were reported to be without any automation. Just over one-half (52%) of these distribution substations were classified as Stage 1 sites (having some IEDs, RTUs, and two-way communications). About 12% were reported to be “fully automated.”

The finding that 60 new transmission substations and 170 new distribution substations are on the drawing board for construction by 2013 provides some cautious optimism for EPC firms, as this level of planning is a sign of re-investment in grid-essential infrastructure.

The World Market for Substation Automation and Integration Programs in Electric Utilities: 2011-2013 Volume 1, North American Market is available for $2,500. To order volumes of these reports as they become available, and to view pricing details for all our reports, visit our Market Research Reports page. For samples or to view the table of contents, send a request to info@newton-evans.com with the subject line “Substation Automation Market 2011.”

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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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In the News . . . Mid-October Update

On October 12, 2010, IBM Corporation and Kyoto Publishing announced the publication of the IBM report titled Generating Insights: Accelerating Into a New Era in Energy. The report explores how the global electric utility industry continues to be reinvented through new technologies and confronting opportunities regarding business strategy, technology innovation, customer interface, regulation, security and consumer demand.

A series of IBM authors and contributors from Oracle, Juniper Networks, Black & Veatch, Southern California Edison, the Global Intelligent Utility Network Coalition, and the Newton-Evans Research Company make up this compilation of white papers in the tenth annual Energy & Utilities project. The project includes papers on topics such as: Collaborating for a Smarter Grid; The Impact of Smart Grid on Climate Change; Smart Grid Security and Architectural Thinking; The New Era In Distributed Generation; Smart Nuclear Power; Keeping the Lights on While Transforming Electric Utilities; and the Newton-Evans contribution, Re-Investing in Electric Power Utilities to Build A Smarter Grid. 

The full IBM report can be downloaded (after sign-up) at http://www.generatinginsights.com/

Also, Chuck’s article, Sailing the Seven “C’s” With CISCO and Itron has been featured in the October 2010 issue of PowerGrid International magazine. Click here to read the October 2010 issue.

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Sailing the Seven “C’s” With CISCO and Itron

by Chuck Newton

The September 1, 2010 announcement of a formal collaboration between CISCO and Itron was notable in several respects. First, the simple announcement was termed “collaboration” instead of “joint venture” or even a formal “partnership.” It was also described as non-exclusive, but was a very important step forward nonetheless for both companies, especially for Itron, and serves as a good omen for the AMI portion of “smart grid” communications in general, thus likely to benefit other AMI market participants that offer communications solutions as part of their go-to-market strategies.

CISCO is a $35 billion company, with an estimated $2-3 billion (Newton-Evans estimate) found within energy-related vertical industry sales of its communications equipment. Itron itself will close in on being a $2 billion corporation again in 2010, with about 50% of revenues derived from electric power industry AMR/AMI sales and services. Continue reading Sailing the Seven “C’s” With CISCO and Itron

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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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The Potential Role of Technology Transfer for Managing the Emerging Smart Grid…

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…

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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.

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New Distribution Automation Study Includes Detailed “Sub-Segment” Level Market Information.

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).

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Density of Distribution Network Intelligent Electronic Devices Seen as Key to Selection of DA Communications Approach

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 2007-2018.” 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

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Utility CAPEX Report Published from the January 2010 Newton-Evans Study of Electric Power T&D Investment

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