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REFERENCE CODE GDSG0031MAR | PUBLICATION DATE JANUARY 2014 SMART GRID MARKET IN NORTH AND SOUTH AMERICA – KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND KEY EQUIPMENT MARKET SIZE TO 2020

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Page 1: GDSG0031MAR Smart Grid Market in North and South America … · to Mexico to study and initiate the incorporation of smart grids in its systems. In terms of renewable ... Key Markets,

REFERENCE CODE GDSG0031MAR | PUBLICAT ION DATE JANUARY 2014

SMART GRID MARKET IN NORTH AND SOUTH AMERICA – KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND KEY EQUIPMENT MARKET

SIZE TO 2020

Page 2: GDSG0031MAR Smart Grid Market in North and South America … · to Mexico to study and initiate the incorporation of smart grids in its systems. In terms of renewable ... Key Markets,

Smart Grid Market In North And South America - Key Issues, Regulations, Current Market Outlook and Key Equipment Market Size to 2020 2 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.

SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND KEY

EQUIPMENT MARKET SIZE TO 2020

Executive Summary

US Leads Way in Key Smart Grid Equipment in North America

The US accounts for the largest grid in the North

American region, and it accounts for the largest

renewable and distributed energy generation. It is

a leading market globally for investments in smart

grid and the funding of smart grid projects. The US

houses many of the Electric Vehicle (EV),

microgrid, smart meters, and microgrid-related and

other-smart-grid-related equipment manufacturers.

In 2013, the US accounted for XX% of the

synchrophasor market and the market is expected

to continue until 2020. Among the US and

Canadian markets, which hold the majority share

of microgrid revenue throughout the world, the US

accounted for a share of XX% of the market. The

US is responsible for the uptake of smart grid

initiatives in North America and has provided funds

to Mexico to study and initiate the incorporation of

smart grids in its systems. In terms of renewable

energy, the US is expected to account for XX% of

the renewable capacity addition between 2014 and

2020 in the North American region. It also leads

the way in terms of EV manufacturers, EV sales

and other smart grid initiatives, in the region.

North and South America Smart Grid, Share of Key Smart Grid Equipment (%), 2013 and 2014–2020

Synchrophasors market size, 2013 Renewable capacity additions, 2014–2020

US

Canada and Mexico

US

Canada and Mexico

Source: GlobalData, Smart Grid Equipment Database [Accessed on October 21, 2013], Capacity and Generation Database [Accessed on October 21, 2013]

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Smart Grid Market In North And South America - Key Issues, Regulations, Current Market Outlook and Key Equipment Market Size to 2020 5 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.

Table of Contents

SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND

KEY EQUIPMENT MARKET SIZE TO 2020

1 Table of Contents

1 Table of Contents ....................................................................................................................... 5

1.1 List of Tables ...................................................................................................................... 9

1.2 List of Figures ................................................................................................................... 11

2 Introduction ............................................................................................................................... 13

2.1 GlobalData Report Guidance ............................................................................................ 14

3 South and North America Smart Grid Market ............................................................................ 15

3.1 North and South America Smart Grid Market, Drivers and Restraints ............................... 15

3.1.1 North America Smart Grid Market Drivers ..................................................................... 15

3.1.2 North America Smart Grid Market Restraints................................................................. 18

3.1.3 South America Smart Grid Market Drivers ..................................................................... 20

3.1.4 South America Smart Grid Market Restraints ................................................................ 25

3.2 North America Funding Scenario ...................................................................................... 27

3.2.1 US, Funding Scenario ................................................................................................... 27

3.2.2 Canada, Funding Scenario ............................................................................................ 30

3.2.3 Mexico........................................................................................................................... 31

3.3 South America, Funding Scenario ..................................................................................... 31

4 North and South America Smart Grid, Key Markets .................................................................. 35

4.1 North and South America Smart Grid, Key Markets, Synchrophasor Overview ................. 35

4.1.1 North America Smart Grid, Key Markets, Synchrophasor Market .................................. 36

4.1.2 South America Smart Grid, Key Markets, Synchrophasor Market, Overview ................. 44

4.2 North and South America Smart Grid, Key Markets, SCADA ............................................ 46

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Smart Grid Market In North And South America - Key Issues, Regulations, Current Market Outlook and Key Equipment Market Size to 2020 6 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.

Table of Contents

SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND

KEY EQUIPMENT MARKET SIZE TO 2020

4.2.1 North and South America Smart Grid, Key Markets, Overview ...................................... 46

4.2.2 North America Smart Grid, Key Markets, SCADA, Overview ......................................... 46

4.2.3 South America Smart Grid, Key Markets, SCADA, Overview ........................................ 49

4.3 North and South America Smart Grid, Key Markets, Renewable Energy Generation ........ 52

4.3.1 North America Smart Grid Market, Key Markets, Renewable Energy Market, Overview 53

4.3.2 South America Smart Grid, Key Markets, Renewable Energy, Overview....................... 60

4.4 North and South America Smart Grid Market, Key Markets, Microgrid .............................. 70

4.4.1 North and South America Smart Grid Market, Key Markets, Microgrid, Overview .......... 70

4.4.2 North America Smart Grid Market, Key Markets, Microgrid, Overview ........................... 71

4.4.3 South America Smart Grid Market, Key Markets, Microgrid, Overview .......................... 77

4.5 North and South America Smart Grid Market, Key Markets, Smart Meters ....................... 77

4.5.1 North America Smart Grid Market, Key Markets, Smart Meters ..................................... 78

4.5.2 South America Smart Grid Market, Key Markets, Smart Meters, Overview.................... 82

4.6 North and South America Smart Grid Market, Key Markets, Electric Vehicles ................... 86

4.6.1 North America Smart Grid Market, Key Markets, Electric Vehicles ................................ 86

4.6.2 South America Smart Grid Market, Key Markets, Electric Vehicles, Overview ............... 89

5 North and South America Smart Grid Market, Upcoming Technologies and Current Outlook ... 90

5.1 North and South America Smart Grid Market, Upcoming Technology, IT Systems ........... 90

5.1.1 North and South America Smart Grid Market, Upcoming Technology, OMS ................. 90

5.1.2 North and South America Smart Grid Market, Upcoming Technology, Distribution

Automation ................................................................................................................... 91

5.2 North and South America Smart Grid Market, Upcoming Technology, Cloud Computing .. 93

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Table of Contents

SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND

KEY EQUIPMENT MARKET SIZE TO 2020

5.3 North and South America Smart Grid Market, Upcoming Technology, Virtual Power Plant

95

5.3.1 Smart Grid Market, North America, Virtual Power Plant................................................. 95

5.3.2 Smart Grid Market, South America, Virtual Power Plant ................................................ 96

5.4 North and South America Smart Grid Market, Upcoming Technology, Smart Cities .......... 97

5.4.1 North America ............................................................................................................... 97

5.4.2 South America............................................................................................................... 99

6 North and South America, Smart Grid, Policy ......................................................................... 101

6.1 North America Smart Grid, Policies ................................................................................. 101

6.1.1 US ............................................................................................................................... 101

6.1.2 Massachusetts ............................................................................................................ 114

6.1.3 Canada ....................................................................................................................... 116

6.2 South America Policy ...................................................................................................... 126

6.2.1 Brazil ........................................................................................................................... 126

7 Appendix................................................................................................................................. 130

7.1 Definitions ....................................................................................................................... 130

7.1.1 Smart Meters............................................................................................................... 130

7.1.2 Demand Response...................................................................................................... 130

7.1.3 Electric Vehicle ............................................................................................................ 130

7.1.4 Distributed Energy Generation Systems ...................................................................... 130

7.1.5 Microgrid ..................................................................................................................... 130

7.1.6 Smart Cities ................................................................................................................ 130

7.1.7 Wide Area Monitoring Systems ................................................................................... 131

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Table of Contents

SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND

KEY EQUIPMENT MARKET SIZE TO 2020

7.1.8 Supervisory Control and Data Acquisition ................................................................... 131

7.1.9 Intelligent Electronic Devices ....................................................................................... 131

7.1.10 Smart Grid ................................................................................................................... 131

7.1.11 Substation Automation ................................................................................................ 131

7.1.12 Cloud Computing ........................................................................................................ 131

7.1.13 Virtual Power Plant ...................................................................................................... 131

7.2 Abbreviations .................................................................................................................. 132

7.3 Bibliography .................................................................................................................... 134

7.4 Methodology ................................................................................................................... 141

7.4.1 Coverage .................................................................................................................... 141

7.4.2 Secondary Research ................................................................................................... 142

7.4.3 Primary Research ....................................................................................................... 142

7.5 Disclaimer ....................................................................................................................... 143

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Table of Contents

SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND

KEY EQUIPMENT MARKET SIZE TO 2020

1.1 List of Tables

Table 1: North and South America Smart Grid, South America, T&D Losses (%), 2012 ............................. 21

Table 2: North and South America Smart Grid, South America, GDP Growth (%), 2007–2018 ................... 24

Table 3: North and South America Smart Grid, US, ARRA Funding, as of September 3, 2013 ($bn) .......... 28

Table 4: North and South America Smart Grid, US, Funds Allocated to Smart Grid, September 2013 ........ 29

Table 5: North and South America Smart Grid, US, US DOE Awarded Projects for Synchrophasors ($),

2013............................................................................................................................................ 37

Table 6: North and South America Smart Grid, US, Synchrophasors Volume (Units) and Market Size ($m),

2009–2020 .................................................................................................................................. 39

Table 7: North and South America Smart Grid, Canada, Synchrophasors Volume (Unit) and Market Size

($m), 2009–2020 ......................................................................................................................... 41

Table 8: North and South America Smart Grid, Mexico, Synchrophasors Volume (Unit) and Market Size

($m), 2009–2020 ......................................................................................................................... 43

Table 9: North and South America Smart Grid, Colombia, Synchrophasors Volume (Unit) and Market Size

($m), 2009–2020 ......................................................................................................................... 45

Table 10: North and South America Smart Grid, US, SCADA Market Size ($bn), 2009–2020 ...................... 48

Table 11: North and South America Smart Grid, US, Breakdown of Total SCADA Revenue by Component,

2012............................................................................................................................................ 49

Table 12: North and South America Smart Grid, Brazil, SCADA Market Size ($m), 2009–2020 ................... 50

Table 13: North and South America Smart Grid, Brazil, Breakdown of Total SCADA Revenue by

Components, 2012 ...................................................................................................................... 51

Table 14: Power Market, Mexico, Installed Renewable Capacity by Source Type (MW), 2006–2020 ........... 55

Table 15: Power Market, US, Installed Renewable Capacity by Source Type (GW), 2006–2020 .................. 58

Table 16: Power Market, Canada, Installed Renewable Capacity by Source Type (GW), 2006–2020 .......... 60

Table 17: Power Market, Brazil, Installed Renewable Capacity by Source Type (GW), 2006–2020 .............. 63

Table 18: Power Market, Chile, Installed Renewable Capacity by Source Type (GW), 2006–2020............... 65

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KEY EQUIPMENT MARKET SIZE TO 2020

Table 19: Power Market, Peru, Installed Renewable Capacity by Source Type (MW), 2006–2020 ............... 67

Table 20: Power Market, Colombia, Installed Renewable Capacity by Source Type (MW), 2006–2020 ........ 69

Table 21: North and South America Smart Grid, US, Microgrid Market Size ($bn), 2011–2020 .................... 73

Table 22: North and South America Smart Grid, Canada, Microgrid Market Size ($m), 2011–2020.............. 76

Table 23: North and South America Smart Grid, US, Smart Meter Market Size ($bn), 2011–2020 ............... 79

Table 24: North and South America Smart Grid, Canada, Smart Meter Market Size ($m) and Volume,

2011–2020 .................................................................................................................................. 81

Table 25: Smart Grid in North and South America, Smart Meter, Brazil, Market Size and Volume, 2011–2020

................................................................................................................................................... 85

Table 26: North and South America Smart Grid, US, Battery Electric Vehicle Market (Units Sold), 2010–2020

................................................................................................................................................... 88

Table 27: North and South America Smart Grid, US, Distribution Automation Equipment Installed, 2013*.... 92

Table 28: North and South America Smart Grid, South America, Renewable Energy Target, 2015–2025 .... 97

Table 29: North and South America Smart Grid, US, Total Investment by Smart Grid Investment Grant

Program ($bn), as of March 31, 2013 ........................................................................................ 103

Table 30: North and South America Smart Grid, California, Self-Generation Incentive Program ($/W), 2012

................................................................................................................................................. 105

Table 31: North and South America Smart Grid, Massachusetts, Net Metering Class Definition, 2013 ....... 115

Table 32: North and South America Smart Grid, Ontario, Feed-In Tariff ($/kWh), 2012 .............................. 122

Table 33: Abbreviations, 2013 ................................................................................................................... 132

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SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND

KEY EQUIPMENT MARKET SIZE TO 2020

1.2 List of Figures

Figure 1: North and South America Smart Grid, North America, Drivers and Restraints, Impact Analysis,

2013............................................................................................................................................ 19

Figure 2: North and South America Smart Grid, South America, T&D Losses in Comparison to Leading

Economies (%), 2012 .................................................................................................................. 21

Figure 3: North and South America Smart Grid, Brazil, GDP Growth (%), 2013 and 2020 ........................... 23

Figure 4: North and South America Smart Grid, South America, Drivers and Restraints Impact Analysis,

2013............................................................................................................................................ 26

Figure 5: North and South America Smart Grid, US, Synchrophasors Volume (Units) and Market Size ($m),

2009–2020 .................................................................................................................................. 39

Figure 6: North and South America Smart Grid, Canada, Synchrophasors Volume (Units) and Market Size

($m), 2009–2020 ......................................................................................................................... 40

Figure 7: North and South America Smart Grid, Mexico, Synchrophasors Volume (Unit) and Market Size

($m), 2009–2020 ......................................................................................................................... 43

Figure 8: North and South America Smart Grid, Colombia, Synchrophasors Volume (Unit) and Market Size

($m), 2009–2020 ......................................................................................................................... 45

Figure 9: North and South America Smart Grid, US, SCADA Market Size ($bn), 2009–2020 ...................... 47

Figure 10: North and South America Smart Grid, US, Breakdown of Total SCADA Revenue by Component

(%), 2012 .................................................................................................................................... 48

Figure 11: North and South America Smart Grid, Brazil, SCADA Market Size ($m), 2009–2020 ................... 50

Figure 12: North and South America Smart Grid, Brazil, Breakdown of Total SCADA Revenue by

Components (%), 2012 ................................................................................................................ 51

Figure 13: Power Market, Mexico, Installed Renewable Capacity by Source Type (MW), 2006–2020 ........... 54

Figure 14: Power Market, US, Installed Renewable Capacity by Source Type (GW), 2006–2020 .................. 57

Figure 15: Power Market, Canada, Installed Renewable Capacity by Source Type (GW), 2006–2020 .......... 59

Figure 16: Power Market, Brazil, Installed Renewable Capacity by Source Type (GW), 2006–2020 .............. 62

Figure 17: Power Market, Chile, Installed Renewable Capacity by Source Type (GW), 2006–2020............... 64

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KEY EQUIPMENT MARKET SIZE TO 2020

Figure 18: Power Market, Peru, Installed Renewable Capacity by Source Type (MW), 2006–2020 ............... 66

Figure 19: Power Market, Colombia, Installed Renewable Capacity by Source Type (MW), 2006–2020 ........ 68

Figure 20: North and South America Smart Grid, US, Microgrid Market Size ($bn), 2011–2020 .................... 73

Figure 21: North and South America Smart Grid, Canada, Microgrid Market Size ($m), 2011–2020.............. 76

Figure 22: North and South America Smart Grid, US, Smart Meter Market Size ($bn), 2011–2020 ............... 79

Figure 23: North and South America Smart Grid, Canada, Smart Meter Market Size ($bn) and Volume,

2011–2020 .................................................................................................................................. 81

Figure 24: North and South America Smart Grid, Brazil, Smart Meter Market Size ($m) and Volume,

2011–2020 .................................................................................................................................. 84

Figure 25: North and South America Smart Grid, US, Battery Electric Vehicle Market (Units Sold), 2010–2020

................................................................................................................................................... 88

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SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND KEY

EQUIPMENT MARKET SIZE TO 2020

Introduction

2 Introduction

“Smart grid” refers to technological advancement, whereby computer-based remote control and

automation technology is used in the electricity delivery system for information collection and

management. This can include two-way communication technology and communication processes,

which help to increase system efficiency, facilitate faster data transfer, better process control and

better energy management. The system enables the transfer of data from power generation

(supply point) to the electricity used by the end-user application, using Information Technology (IT).

A key benefit of modernizing the electricity network through the adoption of smart grids is the ability

to reduce power consumption at the consumer end during peak hours, via demand management.

In addition, smart grids enable the connection of power to the grid from distributed generation

sources such as Photovoltaic (PV) arrays, wind turbines, micro hydro and combined heat power

generators. A smart grid also allows grid energy storage for distributed generation load balancing,

and contains or eliminates failures such as widespread power grid cascading failures. Furthermore,

smart grids drive the adoption of energy efficient appliances by modifying consumer behavior

through in-home displays and variable electricity rates.

The electricity grids in North America and South America are undergoing a significant number of

changes to become efficient and reliable. In North America, the present grid infrastructure in the

region is being upgraded because it is old and incapable of meeting the growing demand for

electricity, minimizing its environmental impact and reducing its dependency on conventional

energy sources. The economic growth of North American countries is largely dependent on their

energy infrastructures. To achieve the required progress, the North American power sector will

have to convert from the conventional one-way energy flow network to an advanced grid system

that enables a two-way flow of power and information. The deployment of smart grid technologies

will help in grid transformation and address issues such as Greenhouse Gas (GHG) emissions,

growing demand for power, peak load demand, Transmission and Distribution (T&D) losses and

integration of renewable energy sources. The South American countries are also looking at smart

grid to fight against their non-technical power losses, increasing per-capita energy consumption,

and creating an efficient power grid.

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SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND KEY

EQUIPMENT MARKET SIZE TO 2020

Introduction

2.1 GlobalData Report Guidance

Chapter two contains the introduction to the report.

Chapter three contains an overview of the smart grid market in North and South America,

along with the drivers, restraints and funding scenario in each region.

Chapter four gives an overview of the South and North America market for key smart grid

equipments such as Synchrophasors, Supervisory Control and Data Acquisition (SCADA),

renewable energy generation, microgrid, smart meter and Electric Vehicles (EV). The markets

of key countries in the region, with forecasts up to 2020, are also covered.

In the case of synchrophasors, the annual unit sales and market size of the US, Canada,

Mexico and Colombia, up to 2020, are covered. Forecasts up to 2020 of the SCADA market

size of the two major markets, namely, the US and Brazil, are also covered. In the case of

renewable energy generation, the cumulative capacity additions in Mexico, the US, Canada,

Brazil, Chile, Colombia and Peru, between 2006 and 2020, are covered. The smart meter unit

installation and market for the US, Canada and Brazil is covered. The EV market in the US

along with the current scenario of Brazil has also been covered. Since the US is the biggest

market for microgrid, the US microgrid market size until 2020 has also been provided.

Chapter five covers the current outlook of certain upcoming technologies in North America and

South America. The upcoming technologies covered are IT systems (Outage Management

System (OMS), Distribution Automation (DA)), Virtual Power Plants (VPP), cloud computing

and smart cities.

The sixth chapter covers policies for EV in key countries, namely, the US, Canada, Mexico and

Brazil.

The seventh chapter is the appendix.

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South and North America Smart Grid Market

SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND KEY

EQUIPMENT MARKET SIZE TO 2020

3.1.3 South America Smart Grid Market Drivers

3.1.3.1 High Non-Technical Loss Rates

Some of the leading Latin American economies, such as Brazil and Chile, have an extremely poor

T&D infrastructure, with lack of investment often cited as one of the main reasons. This has

resulted in huge T&D losses. Power theft is a problem in most Latin American countries, further

contributing to the high distribution losses.

In the case of Brazil, the country has suffered from frequent outages over the last three years.

However, the government has not yet taken necessary action to address the situation. It is more

focused on creating a robust regulatory framework to promote investment in the power generation

sector than in the transmission sector (Biller et al., 2012). Power theft is also widely prevalent in the

country’s power sector. As a result, the country suffers from high T&D losses, amounting to more

than XX% in 2011. However, the country is endeavoring to lower distribution losses by deploying

more smart meters. Chile is also characterized by poor a T&D network. Natural disasters such as

the droughts in 2008 and the earthquake in 2010 resulted in severe damage to the power

transmission system of the country. To reduce power theft, Chile is also deploying smart meters.

As a region, Latin America is said to have had electricity losses of about XX% in 2010, or XX%, if

including the Latin American countries not listed in the table below.

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South and North America Smart Grid Market

SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND KEY

EQUIPMENT MARKET SIZE TO 2020

Figure 2: North and South America Smart Grid, South America, T&D Losses in Comparison to Leading Economies (%), 2012

Argentina Brazil Chile Colombia Peru Venezuela US UK Canada Germany China

T&D

loss

es (%

)

South American countries Other major economies

Source: GlobalData, Capacity and Generation Database [Accessed on: October 4, 2013]

Table 1: North and South America Smart Grid, South America, T&D Losses (%), 2012 Country T&D losses

Argentina

Brazil

Chile

Colombia

Peru

Venezuela

Source: GlobalData, Capacity and Generation Database [Accessed on: October 4, 2013]

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North and South America Smart Grid, Key Markets

4.1.1.2 Canada, Smart Grid Synchrophasor Market

The Canadian market is also a major market for synchrophasors. Its volume and size is much

smaller than the US, because its grid size is comparatively small. Canada is collaborating with the

US to understand the various benefits and requirements to install synchrophasors.

In 2003, a huge blackout that affected about XX million people in both Canada and the US

occurred. The blackout affected the functioning of XX power plants. Following this incident, Canada

and the US along with the NERC have been developing synchrophasors. There have been many

blackouts that have been prevented due to this technology (Galvin, 2013).

In 2010, XX units of synchrophasors were sold in Canada. With new projects and interest in

synchrophasors and their usage the annual units sold has increased to XX in 2013. The revenue

generated by the market in 2013 was $XXm. Units sold and revenue are expected to continuously

increase to XX units and $XXm by 2017 respectively. Following this, a review of smart grid

applications is expected around 2017. Due to this, we estimate that there will be a slowdown in the

pace of synchrophasor installation. However, this could change with the results of the smart grid

application review by NERC.

Figure 6: North and South America Smart Grid, Canada, Synchrophasors Volume (Units) and Market Size ($m), 2009–2020

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Volu

me

(uni

ts)

Mar

ket s

ize

($m

)

Market size Volume Source: GlobalData, Smart Grid Equipment Database [Accessed on October 21, 2013]

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SMART GRID MARKET IN NORTH AND SOUTH AMERICA - KEY ISSUES, REGULATIONS, CURRENT MARKET OUTLOOK AND KEY

EQUIPMENT MARKET SIZE TO 2020

North and South America Smart Grid, Key Markets

Table 7: North and South America Smart Grid, Canada, Synchrophasors Volume (Unit) and Market Size ($m), 2009–2020

Year Market size Volume

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: GlobalData, Smart Grid Equipment Database [Accessed on October 21, 2013]

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7 Appendix

7.1 Definitions

7.1.1 Smart Meters

Smart meters are electric meters, which record electricity consumption every 15 minutes and

communicate this data to utilities for billing purposes. The meters facilitate two-way communication

between consumers and utilities.

7.1.2 Demand Response

Demand response is a dynamic demand mechanism, which monitors and manages customer

electricity consumption according to supply situations. The mechanism can be implemented in

residential, commercial and industrial establishments.

7.1.3 Electric Vehicle

The category EV represents all vehicles in which electricity is used to propel the vehicle. The EV

includes PHEV, HEV and BEV.

7.1.4 Distributed Energy Generation Systems

Distributed energy generating systems include technologies such as PV systems, wind turbines,

small-scale hydropower generating systems, fuel cells and others, which help to generate power on

a small scale, at consumer premises.

7.1.5 Microgrid

A microgrid is an integrated power delivery system that is comprised of distributed energy

resources, multiple interconnected loads and intermediate storage units.

7.1.6 Smart Cities

A smart city is a collection of smart computing technologies applied to various critical infrastructure

components and services such as city administration, education, healthcare, public safety, real

estate, transportation and utilities, in order to improve operational efficiency.

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7.1.7 Wide Area Monitoring Systems

Wide-area monitoring systems help monitor the condition of the grid on a real-time basis with the

assistance of phasor measurement units installed across the grid.

7.1.8 Supervisory Control and Data Acquisition

A SCADA system refers to an industrial computer, which is used to control and monitor the flow of

grid data. The system gathers data from monitoring and control devices that are attached to power

grid.

7.1.9 Intelligent Electronic Devices

intelligent electronic devices are used for the protection and control of power grid assets. The IEDs

can communicate directly with the SCADA system and have the ability to control devices locally in

order to perform protection functions.

7.1.10 Smart Grid

A smart grid is an efficient power grid that delivers electricity to consumers using digital technology

with reduced costs and increased reliability. It will incorporate advanced technologies such as

automated metering infrastructure, sophisticated communication technologies and advanced

storage systems. This makes it highly responsive, with minimal power losses.

7.1.11 Substation Automation

Substation automation refers to the use if data from IEDs, control and automation capabilities

within the substation, and control commands from remote users to control power system devices.

7.1.12 Cloud Computing

Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a

shared pool of configurable computing resources (such as networks, servers, storage, applications,

and services) that can be rapidly provisioned and released with minimal management effort or

service provider interaction (NIST, 2011).

7.1.13 Virtual Power Plant

A VPP is a concept that involves aggregation of distributed energy generation resources so that the

electricity generated through them can be used as a stable source of electricity

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7.2 Abbreviations

Table 33: Abbreviations, 2013 Abbreviation Full form

AMI Advanced Metering Infrastructure

ANEEL Brazil National Electric Energy Agency

ARRA American Recovery and Reinvestment Act

ATV Advanced Technology Vehicle

BCIT British Columbia Institute of Technology

BEV Battery Electric Vehicle

BNDES Brazilian Development Bank

CAGR Compound Annual Growth Rate

CFE Federal Electricity Commission (Comisión Federal de Electricidad)

CHP Combined Heat and Power

CIS Customer Information Systems

CPUC California Public Utilities Commission

CRE Energy Regulatory Commission (Comisión Reguladora de Energía)

DA Distribution Automation

DEEP Department of Energy and Environmental Protection

DER Distributed Energy Resources

DMS Demand Management System

DOE Department of Energy

DPU Department of Public Utilities

EISA Energy Independence and Security Act

EMS Energy Management Systems

EPAct Energy Policy Act

ESM Energy Surety Microgrid

EV Electric Vehicle

GDP Gross Domestic Product

GE General Electric

GHG Greenhouse Gas

GIS Geographic Information Systems

GW Gigawatts

HAN Home Area Network

HARP Hydrogen Assisted Renewable Power System

HEV Hybrid Electric Vehicle

ICE Innovative Clean Energy

ICT Information Communication Technologies

INL Idaho National Laboratory

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IOUs Investor-Owned Utilities

IP Internet Protocol

IPI Industrialized Products

ISO Independent System Operator

IT Information Technology

IVR Interactive Voice Response

kW kilowatt

kWh kilowatt hour

MEM Microgrid Energy Management

MoU Memorandum of Understanding

MW Megawatt

NASPI North America Synchrophasor Initiative

NERC North America Electricity Regulatory Commission

OMS Outage Management System

PG&E Pacific Gas & Electric

PHEV Plug-in Hybrid Electric Vehicle

PIER Public Interest Energy Research Program

PLC Power Line Communications

PNNL Pacific Northwest National Laboratory

PPB Basic Production Process

PUC Public Utilities Code

PV Photovoltaic

R&D Research and Development

RPS Renewable Portfolio Standards

SCADA Supervisory Control and Data Acquisition

SCE Southern California Edison

SDG&E San Diego Gas & Electric

SME Smart Metering Entity

So Cal Gas Southern California Gas Company

SPIDERS Smart Power Infrastructure Demonstration for Energy Reliability and Security

T&D Transmission and Distribution

tcf trillion cubic feet

ToU Time of Use

USTDA US Trade and Development Agency

VPP Virtual Power Plant

W Watt

Source: GlobalData.

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7.3 Bibliography

Academy of Finland (2013). Chile. Academy of Finland. Available from http://www.aka.fi/en-

GB/A/Funding-and-guidance/Funding/International-coopearion/South-America/Chile/

[Accessed on November 15, 2013]

Argonne National Laboratory (2013). Light Duty Electric Drive Vehicles Monthly Sales Updates.

Argonne National Laboratory. Available from:

http://www.transportation.anl.gov/technology_analysis/edrive_vehicle_monthly_sales.html

[Accessed on April 12, 2013]

ARRA (2013). Track the Money. Recovery.gov. Available from:

http://www.recovery.gov/Pages/default.aspx. [Accessed on October 28, 2013].

Arrubarrena, M. et al (2012). Potential Development Zones for Geothermal Direct Uses in

Mexico with a Specific Site Recommendation. Geo-Heat Center, Oregon Institute of

Technology, August, 2012. Available from: http://geoheat.oit.edu/bulletin/bull31-2/art2.pdf

Bayar (2013). Chile Ups Renewable Energy Target. Renewable Energy World.Com. Available

from http://www.renewableenergyworld.com/rea/news/article/2013/09/chile-ups-renewable-

energy-target [Accessed on November 20, 2013]

Biller, D. et al. (2012). Brazil Suffers Fifth Power Outage Since Crackdown on Utilities.

Bloomberg. Available from http://www.bloomberg.com/news/2012-10-26/brazil-suffers-fifth-

power-outage-since-crackdown-on-utilities.html [Accessed on March 4, 2013].

BP Statistics (2013). Statistical Review of World Energy 2013. British Petroleum. Available

from: http://www.bp.com/en/global/corporate/about-bp/statistical-review-of-world-energy-

2013.html. [Accessed on November 4, 2013].

Berst J (2013). The US Government will pay you to Develop Synchrophasor Applications.

SmartGridNews.com. Available from:

http://www.smartgridnews.com/artman/publish/Delivery_Grid_Optimization/The-U-S-

government-will-pay-you-to-develop-synchrophasor-applications-6077.html#.Um33m2UoHHo.

[Accessed on October 28, 2013].

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7.4 Methodology

GlobalData’s dedicated research and analysis teams consist of experienced professionals with a

pedigree in marketing and market research, consulting backgrounds in the energy industry, and

advanced levels of statistical expertise.

GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk) and

the Strategic and Competitive Intelligence Professionals (www.scip.org).

All GlobalData’s databases are continuously updated and revised. The following methodology has

been followed for the collection and analysis of the data presented in this report.

7.4.1 Coverage

The report comprises:

An overview of the smart grid market in North and South America, along with the drivers and

restraints and funding scenario in each region

An overview of the market for key smart grid equipment such as synchrophasors, SCADA,

renewable energy generation, microgrid, smart meter and EV

Coverage of key countries in the region for each market with forecasts up to 2020

In the case of synchrophasors, annual unit sales and market size, up to 2020, of the US,

Canada, Mexico and Colombia

In the case of SCADA, market size and forecasts of the two major markets until 2020: the US

and Brazil

In the case of renewable energy generation, the cumulative capacity additions of Mexico, the

US, Canada, Brazil, Chile, Colombia and Peru, from 2006 to 2020

In the case of smart meter unit installations, the market for the US, Canada and Brazil

In the case of the EV market, the current scenario in the US and Brazil

In the case of the microgrid market, US forecasts until 2020

The current outlook of upcoming technologies such as IT systems (OMS, DA), VPPs, cloud

computing and smart cities

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Policies for smart grid in key countries, namely, the US, Canada, Mexico and Brazil

7.4.2 Secondary Research

The research process begins with exhaustive secondary research within GlobalData’s own

databases and external sources.

Market value and volume estimates and market growth rates are arrived at by taking the following

into consideration:

Statistics and historical trends provided by government bodies, industry associations and

equipment vendors for smart grid markets and equipments

Electric utility plans for deploying or upgrading smart grid systems or the transmission and

distribution network

Government and private sector investments

Other insights built through secondary research and analysis of company websites, annual

reports, investor presentations, industry and trade journals, and association data.

7.4.3 Primary Research

A number of primary interviews are conducted with personnel across the value chain to verify and

fine-tune the market numbers obtained from secondary research and get first-hand information on

industry trends.

Participants are drawn from a diverse set of backgrounds including battery manufacturers, electric

vehicle manufacturers, battery component manufacturers, national laboratories, industry

associations and government bodies. Participants include, but are not limited to, business

development and sales managers, C-level executives, industry consultants and purchasing

managers.

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7.5 Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

permission of the publisher, GlobalData.

This report is a licensed product and should not be reproduced without prior permission.