[Smart Grid Market Research] Smart Grid Marketplace: Where Are We Now? - Zpryme Smart Grid Insights

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The smart grid has experienced tremendous growth and market penetration since its inception. Worldwide deployments have allowed for the creation of a more efficient and reliable energy system. Growth has been achieved by individual utilities in many different areas of the electrical grid. These deployments have allowed utilities to make improvements in the optimal way for them, whether in transmission and distribution, communications, metering, or in other ways. Numerous vendors have entered the smart grid marketplace to meet this need. Companies such as SUBNET Solutions, S&C Electric Company, Trilliant, Freescale Semiconductor, AT&T, and Cooper Power Systems have played a significant role, as they have introduced products and services that have revolutionized smart grid deployments. These innovative products and services are currently shaping the development of the smart grid worldwide and will continue to develop the smart grid through 2013.

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  • STANDARD

    INTELLIGENCE BY ZPRYME | ZPRYME.COM 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.

    SMARTGRIDRESEARCH.ORG INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKETTMSMART GRID INSIGHTS

    OCTOBER 2012

    SMART GRID MARKETPLACE: WHERE ARE WE NOW?

  • 1 [STANDARD] ZPRYME SMART GRID INSIGHTS

    Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org

    Smart Grid Marketplace: Where Are We Now? | October 2012

    Table of Contents

    Smart Grid Marketplace: Where Are We Now? .................... 2

    U.S. Driving Innovation ............................................................... 2

    Global Shape of the Smart Grid .............................................. 3

    Where Will 2013 Take Us? .......................................................... 4

    Q&A: Thought Leaders .............................................................. 7

    SUBNET Solutions ...................................................................... 7

    S&C Electric Company .......................................................... 7

    Trilliant ....................................................................................... 8

    Freescale Semiconductor ..................................................... 9

    AT&T ........................................................................................ 10

    Cooper Power Systems ........................................................ 11

    Special thanks to SUBNET Solutions, S&C Electric Company, Trilliant,

    Freescale Semiconductor, AT&T, and Cooper Power Systems for

    participating in this Zpryme report.

  • 2 [STANDARD] ZPRYME SMART GRID INSIGHTS

    Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org

    Smart Grid Marketplace: Where Are We Now? | October 2012

    Smart Grid Marketplace: Where Are We Now?

    The smart grid has experienced tremendous growth and

    market penetration since its inception. Worldwide

    deployments have allowed for the creation of a more

    efficient and reliable energy system. Growth has been

    achieved by individual utilities in many different areas of

    the electrical grid. These deployments have allowed

    utilities to make improvements in the optimal way for

    them, whether in transmission and distribution,

    communications, metering, or in other ways. Numerous

    vendors have entered the smart grid marketplace to meet

    this need. Companies such as S&C Electric Company,

    Trilliant, Freescale Semi-Conductor, AT&T, and Cooper

    Power Systems have played a significant role, as they

    have introduced products and services that have

    revolutionized smart grid deployments. These innovative

    products and services are currently shaping the

    development of the smart grid worldwide and will

    continue to develop the smart grid through 2013.

    U.S. Driving Innovation

    Thanks to many progressive utilities, innovative US

    companies, and the Smart Grid stimulus program, the total

    number of smart meters in the US increased from 2.4 million

    in 2007 to 33.0 million in 2011 (see figure 1).

    US firms are helping to facilitate the development of the

    smart grid today by providing innovative products and

    services. These firms are introducing revolutionary

    products in all facets of the smart grid marketplace.

    Companies such as S&C Electric Company have been

    able to utilize pilot projects to influence the development

    of the smart grid. Other firms, such as Trilliant, have worked

    with different deployments around the world, becoming a

    global leader when it comes to smart grid implementation.

    Still other American companies, such as AT&T, have been

    able to use competencies developed in other industries to

    serve the needs of the smart grid.

    S&C Electric Company, located in Chicago, IL, has over

    100 years of experience in the electrical power market,

    with over 20 years of distribution automation experience.

    The firm provides "integrated systems leveraging intelligent

    devices.1 The firm has introduced self-healing products and participated in energy storage pilot projects, as well

    as manufactured integrated circuits that will improve the

    security of the smart grid as a whole. In 2012, the firm

    increased the maximum voltage range, thus expanding

    1 www.sandc.com/solutions/smart-grid.asp

    2.4 4.5

    9.6

    20.2

    33.0

    0

    5

    10

    15

    20

    25

    30

    35

    2007 2008 2009 2010 2011

    Total U.S. Smart Meters Installed, 2007 - 2011

    (in millions) - figure 1

    Source: U.S. EIA, form EIA-861 Data, 2007 - 2011 (file 8)

  • 3 [STANDARD] ZPRYME SMART GRID INSIGHTS

    Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org

    Smart Grid Marketplace: Where Are We Now? | October 2012

    the application range, of their IntelliRupter system. Their

    technology has actively shaped the face of today's smart

    grid deployment in places like Chattanooga, TN, where

    the IntelliRupter is expected to reduce outage durations

    by at least 40%. In fact, Chattanooga has been hailed as

    a success story, where implementing a smart grid has

    allowed for increased economic growth, a reduced

    number of power outages, and a more reliable grid,

    creating "the country's most automated smart grid of its

    size."2

    Another American firm that has offered innovative

    products and services for the smart grid market is Trilliant,

    based in Redwood City, CA. Trilliant leads the industry with

    its communications platform, which integrates disparate systems into a unified whole. Trilliant has partnered with numerous firms worldwide, allowing Trilliant to expand

    internationally. Trilliant has learned from these experiences

    and continually improves their product offering, thus

    driving innovation of the smart grid communications

    market. In addition, by working with firms around the

    world, Trilliant's products are being used by utilities

    worldwide, thus shaping the development of the smart

    grid in different nations around the world.3

    AT&T has been able to influence the development of the

    smart grid worldwide. AT&T originally focused on the

    telephone industry, then refined their services to serve the

    smart grid. AT&T has innovatively created the AT&T

    wireless mesh network, utilized by utilities around the world

    today. AT&T has been able to successfully leverage its

    2 www.pennenergy.com/index/power/display/4505629223/articles/electric-light-

    power/smart-

    grid/2012/April/S_C_Electric_Co___EPB__DOE_reach_smart_grid_installation_milestone.ht

    ml

    3 www.trilliantinc.com/

    experience in the telephone market to offer progressive

    and innovative products to the international smart grid

    market, thus influencing the development of the smart

    grid.

    Global Shape of the Smart Grid

    One of the most developed regions of the world is Europe.

    Europe's deployment has been driven by EU directives and

    sustainability goals. The 3rd Energy Package, for example,

    establishes the joint goal of 80% automation of electric

    meters by 2020.4 However, individual nations are able to

    design the best way for them to fulfill these goals. This has

    created a varied degree of deployment, with some

    countries significantly more advanced than others. The

    Netherlands announced 100% smart meter deployment by

    2012. Norway is currently installing smart meters for 2.6

    million customers by 2013.5 In Italy, smart meters have

    been deployed to a large degree and demonstration

    projects have focused on medium-voltage distribution

    lines, advanced network management and automation.

    Spain is replacing every electrical meter with smart meters,

    as well as deploying advanced meter management by

    2015.6 Although each nation designs its deployment with

    its own goals in mind, each nation is also focusing on a

    more efficient grid, both for their nation and for Europe as

    a whole.

    4 smartgridsherpa.com/wp-content/uploads/2011/12/smart-grid-developments_end-of-

    2011-status.pdf

    5

    www.netl.doe.gov/smartgrid/referenceshelf/whitepapers/AMI%20White%20paper%20fin

    al%20021108%20(2)%20APPROVED_2008_02_12.pdf

    6

    ses.jrc.ec.europa.eu/sites/ses/files/documents/smart_grid_projects_in_europe_lessons_le

    arned_and_current_developments.pdf

  • 4 [STANDARD] ZPRYME SMART GRID INSIGHTS

    Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org

    Smart Grid Marketplace: Where Are We Now? | October 2012

    North America has also begun deployment of their smart

    grid. In the US, individual utilities have improved their

    section of the overall energy grid. Several utilities have

    reached full deployment of smart meters, while others

    have improved transmission and distribution, infrastructure,

    and more. Austin Energy has completed its deployments

    of all smart meters. San Diego Electric and Gas has

    upgraded over 95% of its transmission and distribution

    system, improved automation, and pioneered time of use

    pricing.

    Oklahoma Gas and Electric (OGE) has implemented

    volt/VAR improvements, advanced capacitors, and

    remote controls. Each utility is free to research and

    determine the most appropriate improvement for their

    grid. As in Europe, the largest area for improvement has

    been AMI and the installation of smart meters. However,

    unlike Europe, the prime motivation has been profit based,

    with utilities realizing that making improvements can lower

    cost, increase revenue, and create a higher profit margin.

    Asia is also in full deployment mode as China has become

    the largest smart grid market in the world. The State Grid

    Corporation of China initiated 11 pilot projects in 2011,

    including 19 distribution automation systems, 67 smart

    substations, and 50 million smart meters, with the goal of

    300 million smart meters deployed my 2020. In addition,

    State Grid Corporation of China has begun deploying

    microgrids to connect isolated sections of the network.7

    Other Asian nations are also beginning deployments, but

    are observing China's progress before beginning

    widespread advancements.

    7 www.hispanicbusiness.com/2012/9/11/china_leads_smart_grid_market_through.htm

    Brazil is leading smart grid deployment in South America.

    Brazil's energy grid was plagued by non-technical losses.

    The nation realized the potential for smart grid

    improvements, but a lack of a deployment plan and

    regulatory standards have stalled deployment efforts.

    However, utilities have begun smart grid installations in

    their respective segments, with 185 current R&D projects,

    including the Smart Grid Joint Strategic R&D Program,

    whose objective is to draft a National Deployment Plan

    with a focus on smart meters, distribution automation, EVs,

    communications and distributed generation.

    Chile and Argentina, as well as other South American

    nations have not begun deployments. Currently, all of

    South America is suffering from an aging infrastructure that

    will require improvements in the near future.8

    Where Will 2013 Take Us?

    Worldwide

    2013 will build on the experience and successes of smart

    grid deployments to date. Wide-scale European

    deployment will continue at a rapid rate until 2020 due to

    the EU directives and the time line they established. In the

    US, the American Recovery and Reinvestment Act and

    other incentives will expire in 2013. Utilities will either utilize

    profits to pay for further improvements, or improvements

    are likely to stall without further assistance. China's efforts

    have been guided by 5 year plans, which will continue to

    guide deployment efforts in the foreseeable future. These

    improvements will continue to focus on improving

    efficiency and reliability of the Chinese grid. Brazil will also

    8 www.renewgridmag.com/e107_plugins/content/content.php?content.6940

  • 5 [STANDARD] ZPRYME SMART GRID INSIGHTS

    Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org

    Smart Grid Marketplace: Where Are We Now? | October 2012

    continue to advance its smart grid deployment, but a lack

    of binding authority on deployment by governmental

    agencies will prevent widespread efforts. However, other

    countries in Asia and South America will continue to

    observe deployment efforts by their larger counterparts

    before committing to making improvements. Over the

    next 5 years, favorable trade agreements in these areas,

    such as those enacted by APEC and through NATO, will

    encourage deployments in these areas.

    Business Cases

    Worldwide, smart grid deployments will increase the

    number of business cases. The business cases will be

    aimed at cost justification and comparing/evaluating

    different technologies. The information in the cases will

    be derived from the years of analytical data obtained

    since smart meter deployments began. Advanced

    analytics programs and meter data management systems

    have been collecting the smart meter data and are now

    able to evaluate the long term effects, determine the

    most effective smart grid deployment efforts, calculate

    the actual cost and savings from each method of

    deployment, and include costs and benefits that were not

    included in initial projections. This infor...

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