22
xx Title / Section Presents U.S. Grid Automation Report Survey & Analysis By

[Industry report] U.S. Grid Automation Report

Embed Size (px)

Citation preview

xx Title / Section

Presents U.S. Grid Automation Report

Survey & Analysis By

1 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Table of Contents

Executive Summary........................................................................2 About This Report........................................................................2

Methodology ..............................................................................2

Major Findings .............................................................................2

U.S. Grid Automation Survey Implications .....................................4 U.S. Grid Automation Trends ..........................................................5

U.S. Grid Automation Drivers ..........................................................6

Survey Respondent Characteristics ...............................................7 Experience with Distribution Management Systems .................7

Title Within Organization .............................................................7

Utility Type ...................................................................................8

Grid Automation Survey Detailed Findings ...................................9 Grid Analytics Software for Distribution System .........................9

Analytics Software Integration ...................................................9

Substation Automation and IEC 61850 ....................................10

Obstacle of IEC 61850 Standard ..............................................10

Advanced DMS Integration .....................................................11

Updating Substations................................................................11

Updating Feeder Circuits with FLISR .........................................12

Initial System Configuration Services for Grid Automation .....12 Obstacles of Initial System Configuration Services..................13

Impact of Distribution System from Utility Rates or Reliability

Indexes ......................................................................................13

Funding of Distribution Equipment ...........................................14

Equipment Life Extension Program...........................................14

Level of Renewable Energy Generation .................................15

Future Renewable Energy Problems ........................................15 Electric Vehicle Charging ........................................................16

Future Electric Vehicle Charging .............................................16

Demand Management Option ...............................................17

Reasons Demand Response Option Chosen ..........................17

Assisting with Energy Efficiency (EE) Projects ...........................18

Automated Software System for Energy Efficiency and

Sustainability projects ...............................................................18

Zpryme Outlook............................................................................19

2 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Executive Summary

U.S. smart grid expenditures have been compromised

largely of advanced metering infrastructure (AMI) projects

over the past five years. However, many utilities are now

eager to fully optimize their systems with grid automation

projects, which will allow them to fully realize the promise

of the smart grid. Grid automation will create a much

more reliable and efficient grid, enable optimization of

thousands of grid-connected devices and distributed

generation sources, and allow for faster outage recovery

times.

Federal smart grid deployment targets, renewable portfolio standards, and the need to increase grid

reliability have driven U.S. grid automation. However, as

electricity markets open up in the U.S., grid automation

projects will also be driven by a strong need to increase electric provider customer satisfaction.

As U.S. utilities embrace global standards such as IEC

61850, vendors with field proven grid analytics, advanced

DMS, sensors, IEDs, and FLISR solutions will be best

positioned in the market. The long-term result of such

investments in grid automation will result in a significantly

more reliable and efficient grid, higher utility customer

satisfaction, and lower energy bills.

The major findings in this report show that a large majority

of U.S. utilities are ready to take up the task of building a

grid that meets the needs of tomorrow’s Connected Economy. However, utilities will need strong support from

industry stakeholders (vendors, integrators, regulators, etc.)

and electric customers to meet this goal.

About This Report

The purpose of this report is to explore the use of grid

automation and analytics among U.S. utilities, assess utility

interest in adopting global standards, and examine the

level of concern utilities have in regard to the system

impacts of renewable energy sources and electric

vehicles. Additionally, this report identifies key approaches

and obstacles utilities face when pursuing these

advanced grid automation projects.

Methodology

Zpryme surveyed 83 U.S. utility professionals in November of

2012. Respondents were asked 23 questions. The survey

was conducted over the Internet.

Major Findings

About 3 out 4 (76%) utilities are planning to procure

grid analytics software, and they would most prefer analytics software integrated into an advanced

distribution management system (DMS).

Six out of ten (63%) plan to adopt IEC 61850

standard for substation automation. They identified other higher priority items, testing/validation, and a

need for assistance in implementation as the top

three obstacles that would prevent them from

adopting IEC 61850.

Seventy percent of respondents prefer to implement

an advanced DMS using multi-vendor best-of-breed

components (plus systems integration).

3 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Eight out of ten respondents plan to update older

existing substations with intelligent electronic

devices (IEDs) to support DMS or grid automation

capabilities.

Six out of ten respondents are very or highly likely to

use a major equipment vendor to provide initial

system configuration serv ices for grid automation.

The main reasons cited for not using a major

equipment vendor for initial system configuration

were serv ice level agreement concerns for support,

desire to perform “in-house” configurations, and

relationship with existing integrator.

Respondents indicated that the use of

performance-based utility rates or reliability indexes

would most likely lead to increased investment in:

feeder or substation automation, replacing aging

distribution equipment, and DMS or ADMS software.

Forty-three percent of respondents described their

approach to fund a distribution equipment life

extension program as retro-filling existing equipment

with new Breakers/Switches. Thirty-seven percent

said they replace with new equipment, and 20%

said they refurbish existing equipment. Utilities cited availability of capital funding and downtime

(outage) considerations as the main reasons they

chose their approach for their equipment life

extension program.

About one out of five (22%) respondents indicated

that a high-penetration of (future) renewable

energy is expected to cause significant problems on

their distribution system.

Eighteen-percent of respondents indicated that a

high-penetration of (future) electric vehicle (EV)

charging is expected to cause significant problems

on their distribution system.

Just over four out of ten (44%) respondents chose a

commercial and industrial customer-oriented

demand response program as their most preferred

demand management option. Another 25% chose

a grid-oriented solution, like Volt-VAR or

conservation voltage reduction (CVR). Eighteen

percent chose a residential customer-oriented

program.

Thirty-six percent (36%) of respondents said they are

planning to assist large commercial customers with

Energy Efficiency (EE) projects to meet EE portfolio

standards requirements, with another 31% planning

to implement such projects, but the improvements

are not related to Energy Efficiency Portfolio

Standard requirements.

4 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

U.S. Grid Automation Survey Implications

The survey results (presented in figures 1 – 22) in this report

offer key insights about how utilities will proceed with grid

automation projects in the near future. In this section we

present the major implications of the data, and

recommendations that can assist in advancing grid

automation deployments.

U.S. utilities will increasingly embrace grid analytics,

thus creating significant opportunities for utilities to

leverage the influx of data coming from thousands

of nodes across their entire electrical systems.

Analytics will enable faster and more accurate decisions to be made about wholesale peak power

purchases, renewable and distributed resource

integration, customer billing, outages, preventing

energy losses, and emergency response planning. The result is lower operating costs, higher customer

satisfaction, and reducing unnecessary strain on grid

equipment.

A majority of utilities are prepared to embrace

global standards, IEDs, advanced DMS, FLISR,

renewable energy, EVs, and EE standards in an

effort to build a grid that can meet the needs of

today and tomorrow’s Connected Economy.

Utilities will seek to increase large commercial

customer’s participation in demand response

programs. Such programs will require a higher level of customization to meet the needs of large

customers, and also require advanced energy

management system integration on the customer or

utility side.

Utilities are going to demand higher levels of

interoperability, scalability, customer support,

training, validation and testing from vendors before

approving expenditures on new products,

technologies, and software. In other words, small-

scale testing or controlled environment use cases

will no longer be enough to gain the trust of utilities.

Solutions must be proven in real-world (large-scale)

deployments.

5 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

U.S. Grid Automation Trends

Data analytics, advanced substation automation and

demand response, and renewable and electric vehicle

(EV) integration are key trends in grid automation that will

continue to shape the market in the near term.

Data results from the US Grid Automaton Survey indicate

that 73% of US utilities are planning to procure grid

analytics software. They are looking to this solution to

leverage the influx of data coming from thousands of

nodes across their electrical systems to enable faster and

more accurate decisions about wholesale peak power

purchases, renewable and distributed resource integration, customer billing, outages, preventing energy

losses, and emergency response planning. The two

approaches most likely to be used for grid analytics

software are analytics integrated into an advanced DMS or a separate analytics application, and the majority of

the respondents prefer the former approach. Nearly two-

thirds (65%) of the utilities surveyed want to use a multi-

vendor best-of-breed components system, and the

remainder would use an integrated advanced DMS from

a major vendor, plus system integration.

Eighty percent of the utilities that responded to the survey

plan to upgrade older existing substations with intelligent

electronic devices (IEDs) to support DMS or grid

automation capabilities. In addition, the use of

performance-based utility rates or reliability indexes would

most likely lead to increased investment in feeder or substation automation, replacing aging distribution

equipment, and DMS or ADMS software.

A trend in regard to demand response (DR) programs

suggests that nearly half of US utilities are looking to

employ commercial and industrial demand response

solutions, one-quarter prefer a goal-oriented solution like

Volt-VAR or conservation voltage reduction, and a small

percentage (13%) prefer residential customer-oriented DR

programs.

There is a trending concern among utility executives that

high penetrations of future renewable energy and future

EV charging will create significant problems on their

distribution systems.

6 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

U.S. Grid Automation Drivers

AGING INFRASTRUCTURE AND WORKFORCE

The traditional electric grid has been in place since the

mid-19th century, and it is aging along with the workforce

that have managed and maintained it. As with many

asset intensive industries with complex capital

infrastructure, the workforce has grown up with their

respective utilities and the majority of them have been

employed for their entire careers. The development and

implementation of a modern smart grid infrastructure will

require attention to workforce development to provide a

number of well-trained, highly skilled electric power sector

personnel knowledgeable in smart grid operations.

A CRITICAL NEED FOR A FAST, RELIABLE

AND SECURE INFRASTRUCTURE

The smart grid integrates multiple controls and monitoring

systems onto a single IP network to help ensure high priority

is given to grid operations traffic. The network

convergence enables utility companies to reduce power

outages and serv ice interruptions, as well as to reduce response times by quickly identifying, isolating, diagnosing

and repairing faults. The security of such a connected

structure from physical or cyber-attacks is of paramount

importance. The grid needs to be able to detect and

isolate any breach to minimize its effect and raise an

alarm to speed serv ice restoration.

THE NEED TO REDUCE INDEPENDENCE

ON FOSSIL FUELS

The current electric system has relied heavily on fossil fuels,

including oil, coal and natural gas, as energy sources. These fuels are non-renewable and the reserves available

on the earth are dwindling rapidly. The success of the

future electric infrastructure will necessitate a heavy

reliance on renewable energy sources.

GLOBAL, FEDERAL AND STATE REGULATIONS AND TARGETS

The Federal Government has established smart grid

deployment targets and renewable portfolio standards. In

addition, state-based regulatory frameworks, as well as

existing and pending state and federal legislation, have created road maps and targets that are critical to plan a

grid automation deployment strategy.

STIMULUS FUNDS BEING REPLACED

BY PRIVATE FUNDS

More than $9 billion is currently invested in privately funded

projects. In addition, there is strong interest from venture

capital and private sector funding for the development of

innovative smart grid technologies.

7 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Survey Respondent Characteristics

Experience with Distribution Management Systems

Over half (62%) of the respondents had three years or

more experience with distribution management systems.

Title Within Organization

More of the professionals identified themselves as

operations personnel (30%) than other types:

director/manager (22%), professional staff (15%),

superv isory (12%), executive (15%), and other (than these

choices) (6%).

None, 8%

Less than 1

year, 10%

1 to 2 years,

20%

3 to 5 years, 23%

6 to 10 years,

14%

11 to 15 years,

11%

Over 15 years,

14%

How much experience do you have with distribution management systems?

(figure 1, source: Zpryme)

Executive

(CEO, VP), 15%

Director /

M anagerial,

22%

Supervisory,

12%

Professional Staff, 15%

Operations, 30%

Other Utility Position, 6%

What is your title? (figure 2, source: Zpryme)

8 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Utility Type

There was substantial representation of all three types of

electricity utilities: investor-owned (51%), municipal (21%),

and cooperatives (25%).

Investor-owned, 51%

M unicipal, 21%

Electric

cooperative,

25%

Other, 3%

How would you classify your utility? (figure 3, source: Zpryme)

9 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Grid Automation Survey Detailed Findings

Grid Analytics Software for Distribution System

When asked whether their utility was planning to procure

grid analytics software, over three-fourths (76%) said yes.

Analytics Software Integration

The two approaches most likely to be used for grid

analytics software were: analytics integrated into an

advanced DMS (47%), or a separate analytics application

(29%).

Definitely yes,

21%

Probably yes, 55%

Probably no,

19%

Definitely no, 5%

Is your utility planning to procure grid analytics software for your distribution system?

(figure 4, source: Zpryme)

Not planning to procure grid

analytics softw are, 18%

A separate

analytics

application,

29%

Analytics

integrated into

an Advanced

DM S, 47%

Other, 6%

Which approach would you likely use for the grid analytics software?

(figure 5, source: Zpryme)

10 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Substation Automation and IEC 61850

Sixty-three percent said their utility was planning to adopt

the IEC 61850 standard for substation automation.

Obstacle of IEC 61850 Standard

The main obstacles listed that would stop them from

adopting IEC 61850 were other higher priorities (35%),

testing/validation (18%), need assistance to implement

(13%), and training (13%).

Definitely yes, 15%

Probably yes,

48%

Probably no,

31%

Definitely no,

6%

Is your utility planning to adopt the IEC 61850 standard for substation automation? (figure 6, source: Zpryme)

6%

13%

13%

15%

18%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Other

Training

Need assistance to implement

Nothing, we plan to adopt

Testing / Validation

Higher priorities at this time

What primary obstacle would stop you from adopting the IEC 61850 standard?

(figure 7, source: Zpryme)

11 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Advanced DMS Integration

The most popular approach to implement an advanced

DMS would use multi-vendor best-of-breed components,

plus systems integration (70%). The remainder (30%) would

use an integrated advanced DMS from a major vendor.

Updating Substations

The utility professionals were queried about whether they

planned to update existing substations with new electric

devices to support DMS or grid automation capabilities.

79% said they planned to do so.

An integrated

Advanced DM S

from a major

vendor, 30%

M ulti-vendor

best-of-breed

components,

plus systems

integration, 70%

Which approach would you prefer to implement an Advanced DMS?

(figure 8, source: Zpryme)

Definitely yes,

25%

Probably yes,

54%

Probably no,

18%

Definitely no, 3%

Is your utility planning to update older existing substations with new intelligent electronic devices

(IEDs) to support DMS or grid automation capabilities?

(figure 9, source: Zpryme)

12 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Updating Feeder Circuits with FLISR

They were also asked whether their utility planned to

update existing feeder circuits outside of the substation

with fault location, isolation, and serv ice restoration

upgrades, and 70% said they had such plans.

Initial System Configuration Services for Grid Automation

Ninety-five percent of the respondents said they would

likely (21% extremely likely) use a major vendor to provide

initial system configuration serv ices for their grid

automation.

Definitely yes, 26%

Probably yes,

44%

Probably no, 25%

Definitely no,

5%

Is your utility planning to update existing feeder circuits outside of the substation with FLISR (fault location,

isolation, and service restoration)?

(figure 10, source: Zpryme)

Extremely likely,

21%

Very likely, 41%

Somew hat likely, 33%

Not likely at all,

5%

How likely are you to use a major equipment vendor to provide initial system configuration services for your

grid automation?

(figure 11, source: Zpryme)

13 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Obstacles of Initial System Configuration Services

The primary obstacles that would stop utilities from using a

major equipment vendor for initial system configuration

were: serv ice level agreement concerns for support (30%),

desire to perform “in house” configurations (19%), and

relationship with existing integrator (18%).

Impact of Distribution System from Utility Rates or Reliability

Indexes

The top three major impacts on the distribution system

from using performance-based utility rates or reliability

indexes were: increased investment in feeder automation

or substation automation (43%), increased investment for

replacing aging distribution equipment (26%), and

increased investment in DMS or ADMS software (13%).

10%

23%

18%

19%

30%

0% 10% 20% 30% 40%

Other

Nothing, we are planning to use a

major equipment vendor

Relationship with existing integrator

Desire to perform “in-house” instead

Service level agreement concerns forsupport

What primary obstacle would stop you from using a major equipment vendor to provide initial system configuration services for your grid automation

project? (figure 12, source: Zpryme)

4%

6%

8%

13%

26%

43%

0% 10% 20% 30% 40%

No impact

Increased investment for refurbishing /

extending life of aging equipment

Other

Increased investment in DMS or ADMS

software

Increased investment for replacing

aging distribution equipment

Increased investment in feeder

automation or substation automation

What will be the major impact on the distribution system from performance-based utility rates or

reliability indexes?

(figure 13, source: Zpryme)

14 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Funding of Distribution Equipment

Respondents were asked to describe their approach when

their utility funds a distribution equipment life extension

program. Thirty-seven percent said that they would retrofit

existing equipment with new breakers/switches into the

existing structure, 43% would replace with new equipment,

and the remainder (20%) would refurbish existing

equipment.

Equipment Life Extension Program

The main reasons they chose their approach (cited in

figure 14) was the availability of capital funding (38%), and

downtime (outage) considerations (30%). Other less

chosen reasons were: physical dimensions/size restrictions

(13%), arc flash exposure risk migration (7%), and qualified

equipment serv ice provider (8%).

Replace w ith

new

equipment, 43%

Refurbish

ex isting

equipment, 20%

Retro-fill ex isting

equipment w ith

new Breakers /

Sw itches (into ex isting

structures), 37%

When your utility funds a distribution equipment life extension program, which best describes your

approach?

(figure 14, source: Zpryme)

4%

8%

7%

13%

30%

38%

0% 10% 20% 30% 40%

Other

Qualified equipment service provider

Arc Flash exposure risk mitigation

Physical dimensions / size restrictions

Downtime (outage) considerations

Availability of capital funding

What is the main reason your utility chooses this approach for an equipment life extension program?

(figure 15, source: Zpryme)

15 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Level of Renewable Energy Generation

A two-part issue first asked what the level of renewable

energy generation that was being placed on their

distribution system was today. Responses were: none

(10%), small level (57%), moderate level (23%), and large

level (10%).

Future Renewable Energy Problems

The second part of the issue asked whether a high-

penetration of (future) renewable energy on their utility

distribution system would cause any problems. Twelve

percent said it would not cause any problems; 29% said it

would cause small problems; 37% said it would cause

moderate problems; and 22% said it would cause

significant problems.

None, 10%

Small, 57%

M oderate, 23%

Large, 10%

The level of renewable energy generation being placed onto my utility distribution system today is:

(figure 16, source: Zpryme)

Not cause any

problems, 12%

Cause small problems, 29%

Cause

moderate

problems, 37%

Cause significant

problems, 22%

A high-penetration of (future) renewable energy on my utility distribution system is expected to:

(figure 17, source: Zpryme)

16 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Electric Vehicle Charging

Another two-part issue first asked what the level of electric

vehicle charging that was being placed on their

distribution systems was today. Respondents said: none

(38%), small level (56%), moderate level (4%), and large

level (2%).

Future Electric Vehicle Charging

The follow-on question probed whether a high-penetration

of (future) electric vehicle charging would cause

problems. Seventeen percent said it would not cause

problems; 29% said it would cause small problems; 36%

said it would cause moderate problems; and 18% said it

would cause significant problems.

None, 38%

Small, 56%

M oderate, 4%

Large, 2%

The level of electric vehicle charging being placed on my utility distribution system today is:

(figure 18, source: Zpryme)

Not cause any problems, 17%

Cause small problems, 29% Cause

moderate

problems, 36%

Cause

significant

problems, 18%

A high-penetration of (future) electric vehicle charging on my utility distribution system is expected to:

(figure 19, source: Zpryme)

17 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Demand Management Option

The next question asked the sample which demand

management option they preferred. Forty-four percent

said they preferred commercial and industrial customer-

oriented demand response programs; 25% preferred a

grid-oriented solution like Volt-VAR or conservation voltage

reduction; 13% preferred residential customer-oriented

demand response programs; and the remainder, 18%, had

another (than these three) preference.

Reasons Demand Response Option Chosen

An open-ended question asked why those demand

management preferences were selected (in figure 20);

and the most frequent reasons were:

Grid oriented preference

Cost savings

Conserve energy

Changing grid dynamics

Commercial and industrial oriented

Ability to control load on a predictable basis

Best ROI because there is a large MW control

from a few customers

Residential oriented

Pass savings on to customers

Let customer take control of their energy

usage

No theme emerged when some respondents said they

were not using a demand response program.

Grid-oriented solution - like

Volt-VAR or conservation

voltage reduction

(CVR), 25%

Commercial

and industrial

customer-

oriented demand

response

program, 44%

Residential

customer-

oriented demand

response program, 13%

Other, 18%

Which of the following does your utility prefer as a demand management option?

(figure 20, source: Zpryme)

18 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Assisting with Energy Efficiency (EE) Projects

The sample of utility professionals was queried about

whether their utility was planning to assist large customers

with energy efficiency (EE) projects. Thirty-six percent said

yes to meet EE portfolio standards requirements; and

another 31% said yes but not related to EE portfolio

standards. Another 33% said they were not actively

pursuing EE savings with customers.

Automated Software System for Energy Efficiency and

Sustainability projects

The last item on the survey asked whether the respondents

would need an automated software system to track

energy efficiency (EE) savings and sustainability of such

projects. Fifty-three percent said yes (28% to meet EE

portfolio standards requirements, 25% not related to EE

portfolio standards). Thirty-one percent reported they were

not actively pursuing such a project, with a remaining 16%

responding otherwise.

Yes – to meet

EE portfolio

standards

requirements, 36%

Yes – but not related to EE

portfolio standards, 31%

No – w e are not actively

pursuing Energy Efficiency

savings w ith customers., 33%

Is your utility planning to assist large customers with Energy Efficiency (EE) projects?

(figure 21, source: Zpryme)

Yes – to meet

EE portfolio

standards

requirements, 28%

Yes – but not related to EE

portfolio

standards, 25%

No – w e are not

actively

pursuing Energy

Efficiency savings w ith

customers., 31%

Other, 16%

Would your utility need an automated software system to track the Energy Efficiency savings and Sustainability

of projects?

(figure 22, source: Zpryme)

19 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

Zpryme Outlook

As U.S. utilities transition from pilot or project mode to full

deployment mode, the grid automation market will

experience rapid transformation in the near term. Utilities

that have already started distribution and substation

automation will drive the growth of this market.

Progressive utilities will pioneer the use of grid analytics,

advanced DMS, sensors, IEDs, and FLISR. U.S. utilities will

chart the path for global adoption of these technologies.

Additionally, as grid automation deployments increase, it

will become easier for utilities to make the business case

(to PUCs, communities, and investors) for investments in such technologies.

Finally, as U.S. utilities embrace global standards such as

IEC 61850, vendors will ramp up their R&D and product portfolios to be able to meet utility demand for grid

automation products. This increase in competition will lead

to lower equipment prices and increased ROIs for utilities.

The long-term result of such investments in grid automation

will result in a significantly more reliable and efficient U.S.

electric grid, higher utility customer satisfaction, and lower

energy bills.

20 w ww.zpryme.com | www.smartgridresearch.org | www.schneider-electric.us Schneider Electric Presents: U.S. Grid Automation Report | September 2013

Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved.

About Schneider Electric

As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in Utilities &

Infrastructure, Industries & Machines Manufacturers, Non-residential Building, Data Centers & Networks and in Residential. Focused on making energy safe, reliable, efficient, productive and green, the

company’s 140,000 plus employees achieved sales of 30.8 billion US dollars (24 billion euros) in 2012, through an active commitment to help individuals and organizations make the most of their energy.

About Zpryme:

Zpryme helps energy organizations understand their business environment, engage consumers, inspire innovation, and take action. This practice represents an evolution beyond traditional market

research and consulting: combining sound fundamentals, innovative tools and methodologies, industry experience, and creative marketing savvy to supercharge clients’ success. At Zpryme, we don’t produce

tables and charts; we deliver opportunity-focused, actionable insight that is both engaging and easy-to-digest.

Disclaimer: These materials and the information contained herein are provided by Zpryme Research & Consult ing, LLC and are int ended to provide general information on a particular subject or subjects and is not an exhaust ive t reat ment of such subject(s). Accordingly, the information in these materials is not intended to const it ut e account ing, t ax, legal, investment, consulting or other professional advice or services. The information is not int ended t o be relied upon as t he sole basis for any decision w hich may affect you or your bus iness . Before making any decis ion or t aking any

act ion that might affect your personal finances or business, you should consult a qualified professional adviser. These mat erials and the information contained herein is provided as is, and Zpryme Research & Consult ing, LLC makes no express or implied representations or warranties regarding these materials and the information herein. Without limiting t he foregoing, Zpryme Research & Consulting, LLC does not w arrant t hat t he mat erials or informat ion cont ained herein w ill be error-free or will meet any particular criteria of performance or quality. Zpryme Research & Consult ing, LLC expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, t it le, fit ness

for a part icular purpose, noninfringement , compat ibilit y, securit y, and accuracy. Predict ion of fut ure ev ent s is inherent ly subject to both known and unknown risks, uncertainties and other factors that may cause actual result s t o vary mat erially. Your use of t hese and t he informat ion cont ained herein is at your ow n risk and you assume full respons ibility and risk of loss resulting from the use thereof. Zpryme Research & Consulting, LLC will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages what soever, w het her in an

act ion of contract, statute, tort (including, without limitation, negligence), or otherwise, relat ing t o t he use of t hese mat erials and t he informat ion cont ained herein.

xx Title / Section

Learn more at www.schneider-electric.us/go/utility

zpryme.com