SYNCHROPHASORS IN SMART GRID IN KEY COUNTRIES, UPDATE 2014 MARKET VOLUME, AVERAGE PRICE AND MARKET SIZE FORECASTS TO 2020

Transcription

1 REFERENCE CODE GDSG0033M AR PUBLICAT ION DATE SEPTEMBER 2014 SYNCHROPHASORS IN SMART GRID IN KEY COUNTRIES, UPDATE 2014 MARKET VOLUME, AVERAGE PRICE AND MARKET SIZE FORECASTS TO 2020

2 Executive Summary US Leads North American Synchrophasor Market The US has the largest grid in North America and accounts for the majority of the renewable and distributed energy generation in the region. It is also a leading market in terms of smart grid investment and project funding. North America is the base for many Electric Vehicle (EV), microgrid, and smart meter manufacturers, as well as companies involved in the manufacture of other microgrid and smart grid-related equipment. It also leads the North American Synchrophasor Initiative (NASPI). The US is the leading country in the synchrophasor market in North America in terms of value and sales, with a XX% share, followed by Canada with XX% and Mexico with the remaining XX%. Synchrophasors, North America, Market Size by Country (%), 2013 Mexico China Holds the Lowest Average Price per Synchrophasor Unit The average price of a synchrophasor in China is less than half of the price in most developed countries, because they are locally manufactured and tailor-made to specific lower standards and requirements stipulated by the government. The average price of a synchrophasor unit amounted to $XX per unit in The following figure compares the average price per unit for synchrophasors in China with other countries over the period. China is also the biggest upcoming market for synchrophasors by volume. Synchrophasors, Average Price ($), UK India US Australia Colombia Canada China Average price ($/unit) Source: GlobalData, Power etrack, Equipment Database [Accessed on April 25,2014] US Source: GlobalData, Power etrack, Equipment Database [Accessed on April 25,2014] 2

3 Table of Contents 1 Table of Contents 1 Table of Contents List of Tables List of Figures Introduction Synchrophasor Overview Synchrophasors, Enabling Devices GlobalData Report Guidance Synchrophasor for Smart Grid Market, Global, Synchrophasor for Smart Grid Market, Global, Drivers, Impact Analysis, Transmission System Improvements Easy Integration with Power Control and Monitoring Devices Enhanced Functionality Government Funding Pilot Projects and Small-scale Deployments Synchrophasor for Smart Grid Market, Global, Restraints, Impact Analysis, Delay Caused by Need for New Tools and Applications Scalability of Data Acquisition and Performance of Communication Networks Necessary Substantial Investment India, Synchrophasor Market, India, Synchrophasor Market, Transmission Infrastructure India, Synchrophasor Market, Smart Grid

4 Table of Contents 4.2 India, Synchrophasor Market, Volume and Market Size India, Synchrophasor Market, Average Price China, Synchrophasor Market, China, Synchrophasor Market, Transmission Infrastructure China, Synchrophasor Market, Smart Grid China, Synchrophasor Market, Volume and Market Size China, Synchrophasor Market, Average Price Australia, Synchrophasor Market, Australia, Synchrophasor Market, Transmission Infrastructure Australia, Synchrophasor Market, Smart Grid Australia, Synchrophasor Market, Volume and Market Size Australia, Synchrophasor Market, Average Price New Zealand, Synchrophasor Market, New Zealand, Synchrophasor Market, Transmission Infrastructure New Zealand, Synchrophasor Market, Smart Grid New Zealand, Synchrophasor Market, Volume and Market Size New Zealand, Synchrophasor Market, Average Price Mexico, Synchrophasor Market, Mexico, Synchrophasor Market, Transmission Infrastructure Mexico, Synchrophasor Market, Smart Grid Mexico, Synchrophasor Market, Volume and Market Size Mexico, Synchrophasor Market, Average Price Canada, Synchrophasor Market,

5 Table of Contents 9.1 Canada, Synchrophasor Market, Transmission Infrastructure Canada, Synchrophasor Market, Smart Grid Canada, Synchrophasor Market, Volume and Market Size Canada, Synchrophasor Market, Average Price US, Synchrophasor Market, US, Synchrophasor Market, Transmission Infrastructure US, Synchrophasor Market, Smart Grid US, Synchrophasor Market, Volume and Market Size US, Synchrophasor Market, Average Price Colombia, Synchrophasor Market, Colombia, Synchrophasor Market, Transmission Infrastructure Colombia, Synchrophasor Market, Smart Grid Colombia, Synchrophasor Market, Volume and Market Size Colombia, Synchrophasor Market, Average Price UK, Synchrophasor Market, UK, Synchrophasor Market, Transmission Infrastructure UK, Synchrophasor Market, Smart Grid UK, Synchrophasor Market, Volume and Market Size UK, Synchrophasor Market, Average Price Appendix Definitions Smart Grid Smart Meters

6 Table of Contents Demand Response Electric Vehicle Distributed Energy Generation Systems Microgrid Smart Cities Wide Area Monitoring Systems Supervisory Control and Data Acquisition Synchrophasor Abbreviations Bibliography Research Methodology Coverage Secondary Research Primary Research Disclaimer

7 Table of Contents 1.1 List of Tables Table 1: Synchrophasors, India, Transmission Line Length (Ckm), Table 2: Synchrophasors, India, Transmission Substation Volume, Table 3: Synchrophasors, India, Volume and Market Size ($m), Table 4: Synchrophasors, India, Average Price ($/unit), Table 5: Synchrophasors, China, Transmission Line Length (Ckm), Table 6: Synchrophasors, China, Transmission Substation Volume, Table 7: Synchrophasors, China, Volume and Market Size ($m), Table 8: Synchrophasors, China, Average Price ($/unit), Table 9: Synchrophasors, Australia, Transmission Line Length (Ckm), Table 10: Synchrophasors, Australia, Transmission Substation Volume, Table 11: Synchrophasors, Australia, Volume and Market Size ($m), Table 12: Synchrophasors, Australia, Average Price ($/unit), Table 13: Synchrophasors, New Zealand, Transmission Line Length (Ckm), Table 14: Synchrophasors, New Zealand, Transmission Projects to be Commissioned, Table 15: Synchrophasors, New Zealand, Transmission Substation Volume, Table 16: Synchrophasors, New Zealand, Volume and Market Size ($m), Table 17: Synchrophasors, New Zealand, Average Price ($/unit), Table 18: Synchrophasors, Mexico, Transmission Line Length (Ckm), Table 19: Synchrophasors, Mexico, Volume and Market Size ($m), Table 20: Synchrophasors, Mexico, Average Price ($/unit), Table 21: Synchrophasors, Canada, Transmission Line Length (Ckm), Table 22: Synchrophasors, Canada, Transmission Substation Volume, Table 23: Synchrophasors, Canada, Volume and Market Size ($m),

8 Table of Contents Table 24: Synchrophasors, Canada, Average Price ($/unit), Table 25: Synchrophasors, US, Transmission Line Length (Ckm), Table 26: Synchrophasors, US, Transmission Substation Volume, Table 27: Synchrophasors, US, ARRA Funding ($bn), as of September 3, Table 28: Synchrophasors, US, Volume and Market Size ($m), Table 29: Synchrophasors, US, Average Price ($/unit), Table 30: Synchrophasors, Colombia, Transmission Line Length (Ckm), Table 31: Synchrophasors, Colombia, Transmission Substation Volume, Table 32: Synchrophasors, Colombia, Volume and Market Size ($m), Table 33: Synchrophasors, Colombia, Average Price ($/unit), Table 34: Synchrophasors, UK, Transmission Line Length (Ckm), Table 35: Synchrophasors, UK, Transmission Line Length (Ckm), Table 36: Synchrophasors, UK, Volume and Market Size ($m), Table 37: Synchrophasors, UK, Average Price ($/unit), Table 38: Abbreviations

9 Table of Contents 1.2 List of Figures Figure 1: Synchrophasors, India, Transmission Line Length (Ckm), Figure 2: Synchrophasors, India, Transmission Substation Volume, Figure 3: Synchrophasors, India, Volume and Market Size ($m), Figure 4: Synchrophasors, India, Average Price ($/unit), Figure 5: Synchrophasors, China, Transmission Line Length (Ckm), Figure 6: Synchrophasors, China, Transmission Substation Volume, Figure 7: Synchrophasors, China, Volume and Market Size ($m), Figure 8: Synchrophasors, China, Average Price ($/unit), Figure 9: Synchrophasors, Australia, Transmission Line Length (Ckm), Figure 10: Synchrophasors, Australia, Transmission Substation Volume, Figure 11: Synchrophasors, Australia, Volume and Market Size ($m), Figure 12: Synchrophasors, Australia, Average Price ($/unit), Figure 13: Synchrophasors, New Zealand, Transmission Line Length (Ckm), Figure 14: Synchrophasors, New Zealand, Transmission Substation Volume, Figure 15: Synchrophasors, New Zealand, Volume and Market Size ($m), Figure 16: Synchrophasors, New Zealand, Average Price ($/unit), Figure 17: Synchrophasors, Mexico, Transmission Line Length (Ckm), Figure 18: Synchrophasors, Mexico, Volume and Market Size ($m), Figure 19: Synchrophasors, Mexico, Average Price ($/unit), Figure 20: Synchrophasors, Canada, Transmission Line Length (Ckm), Figure 21: Synchrophasors, Canada, Transmission Substation Volume, Figure 22: Synchrophasors, Canada, Volume and Market Size ($m), Figure 23: Synchrophasors, Canada, Average Price ($/unit),

10 Table of Contents Figure 24: Synchrophasors, US, Transmission Line Length (Ckm), Figure 25: Synchrophasors, US, Transmission Substation Volume, Figure 26: Synchrophasors, US, Volume and Market Size ($m), Figure 27: Synchrophasors, US, Average Price ($/unit), Figure 28: Synchrophasors, Colombia, Transmission Line Length (Ckm), Figure 29: Synchrophasors, Colombia, Transmission Substation Volume, Figure 30: Synchrophasors, Colombia, Volume and Market Size ($m), Figure 31: Synchrophasors, Colombia, Average Price ($/unit), Figure 32: Synchrophasors, UK, Transmission Line Length (Ckm), Figure 33: Synchrophasors, UK, Transmission Substation Volume, Figure 34: Synchrophasors, UK, Volume and Market Size ($m), Figure 35: Synchrophasors, UK, Average Price ($/unit),

11 Introduction 2 Introduction 2.1 Synchrophasor Overview Synchrophasors, which are also called Phasor Measurement Units (PMU), have been in use for many years and are often built into electronic relays and digital functional recorders. They are primarily used to measure accurately time-stamped voltage and current at numerous sites in a power grid at a speed of XX times per second. The measurements are synchronized into an absolute time reference, which is provided by a Global Positioning System (GPS). This provides an easy way of analyzing values from different sites, and they are used as a wide area measurement and control tool to visualize an entire power system. When implemented in substation and generating stations, they can provide critical data that improve grid automation and operation. They are built as dedicated units or to provide extra functionality in devices such as protective relays and fault recorders. Synchrophasor measurements provide the following benefits in terms of facilitating the efficient and reliable operation of the electric grid: Grid visualization Operational monitoring Power system control Stability monitoring State estimation Fault analysis The synchrophasor system contains the following components: Sensors GPS Concentrator Storage/retrieval devices Time synchronizer 12

12 Introduction Protocol Network Processing equipment Phasor Data Concentrators (PDC) are installed at each substation and at each control center as part of a hierarchical structure that sends data to the control center. At each PDC, the data that must be sent and the rate at which data are required to be sent is predetermined. The PDCs can communicate with each other and with central control via secure gateways. 2.2 Synchrophasors, Enabling Devices Generally, synchrophasors are available in two configurations. Dedicated synchrophasors are units that perform only synchronized measurements and send the data to a PDC. In integrated units, the PMUs are integrated with protection relays and digital fault recorders. The function of synchronized measurement is part of this unit. Integrated units are the preferred installation method for synchrophasors, as dedicated units require dedicated space and infrastructure for implementation. Most system operators prefer integrated units as they can be easily replaced with existing protection relays and multi-function recorders. Protective Relays Relays are the most reliable instruments in the power grid and adding phasor measurement functionality to them is therefore considered an economical approach. By activating the phasor measurement capability in relays, the need for additional instruments and wiring is reduced. Additionally, relays can provide information such as breaker status and relay alarms along with synchrophasor data. Disturbance/Fault Recorder The disturbance/fault recording system records and archives time-stamped disturbance data such as sequence-of-events data, fault recording data and dynamic disturbance data. Synchrophasors are also embedded with such fault recording systems and provide both phasor measurement and fault-recording information. 13

13 Introduction Multi-Function Recorder Multi-function recorders act as dynamic monitoring systems and perform functions such as transient recording, phasor measurement, disturbance recording, sequence-of-events recording, power quality monitoring, and data logging. 2.3 GlobalData Report Guidance The Introduction provides an overview of synchrophasors and enabling devices. The Global Market section gives a detailed account of the important factors driving the global market for synchrophasors, and an overview of the challenges. The nine chapters that follow provide country-level analysis for each of the nine countries considered key within this market. Each country section (chapter) discusses the transmission infrastructure of the respective country, and provides details such as the smart grid market scenario and critical market parameters, such as average price and market volume. 14

14 China, Synchrophasor Market, China, Synchrophasor Market, China is one of the biggest markets for synchrophasors, which it is implementing as part of its transmission infrastructure upgrade. The power transmission market in China is expected to be driven primarily by the large geographical distances between power demand centers and energyrich areas, non-unified power grid and insufficient grid capacity, the incorporation of renewable energy into the grid, and smart grid deployment. 5.1 China, Synchrophasor Market, Transmission Infrastructure Electricity transmission is currently carried out primarily at the following voltage levels: XXkV, XXkV, XXkV, XXkV, XXkV, XXkV Direct Current (DC), and XXkV. Most are XXkV lines. In 2009, the cumulative length of power transmission lines amounted to XX Ckm, which increased to XX Ckm in This total length consisted of XX Ckm at XXkV, XX Ckm at XXkV (DC), XX Ckm at XXkV, XX Ckm at XXkV, XX Ckm at XXkV, XX Ckm at XXkV and XX Ckm at XXkV. 27

15 China, Synchrophasor Market, Figure 5: Synchrophasors, China, Transmission Line Length (Ckm), Transmission line length (Ckm) kV 220kV 330kV 500kV 750kV 800kV (DC) 1,000kV Source: GlobalData, Transmission and Distribution Database [Accessed on February 4, 2014] Table 5: Synchrophasors, China, Transmission Line Length (Ckm), Year 110kV 220kV 330kV 500kV 750kV 800kV (DC) 1,000kV Total Source: GlobalData, Transmission and Distribution Database [Accessed on February 4, 2014] 28

16 Appendix 13 Appendix 13.1 Definitions Smart Grid A smart grid is an efficient power grid that delivers reliable and low-cost electricity to consumers using digital technology. It incorporates advanced technologies such as automated metering infrastructure, sophisticated communication technologies and advanced storage systems. This makes it highly responsive to demand and supply fluctuations, with minimal power losses Smart Meters Smart meters are electric meters that record electricity consumption every 15 minutes and communicate these data to utilities for billing purposes. The meters facilitate two-way communication between consumers and utilities Demand Response Demand response is a dynamic demand mechanism that monitors and manages customer electricity consumption according to supply situations. The mechanism can be implemented in residential, commercial and industrial establishments Electric Vehicle The EV category represents all vehicles that are propelled by electricity. It includes Plug-in Hybrid Electric Vehicles (PHEV), Hybrid Electric Vehicles (HEV) and Battery Electric Vehicles (BEV) Distributed Energy Generation Systems Distributed energy generation systems include technologies such as PV systems, wind turbines, small-scale hydropower generating systems, and fuel cells, which generate power on a small scale on the consumer s premises Microgrid A microgrid is an integrated power delivery system that is composed of distributed energy resources, multiple interconnected loads and intermediate storage units. 92

17 Appendix 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 Wide Area Monitoring Systems Wide area monitoring systems monitor the condition of the grid on a real-time basis with the assistance of PMUs Supervisory Control and Data Acquisition A Supervisory Control and Data Acquisition (SCADA) system is an industrial computer that is used to control and monitor the flow of grid data. The system gathers data from monitoring and control devices that are attached to the power grid Synchrophasor Synchrophasors are devices primarily used to measure accurately time-stamped voltage and current at a range of locations in a power grid at a rate of 30 times per second. 93

18 Appendix 13.2 Abbreviations Table 38: Abbreviations Abbreviation AC AER ARRA BEV CAC CAGR CEA CERC CHP CFE CIDET Ckm CRE DC DMS DoE EEI EV GDP GW HEV HVDC IED km kw mi MW NASPI NERC OFGEM OMS PDC PHEV PMU Full form Alternating Current Australian Energy Regulator American Recovery and Reinvestment Act Battery Electric Vehicle Commercialization Advisor Committee Compound Annual Growth Rate Canadian Electricity Association Central Electricity Regulation Commission Combined Heat and Power Comisión Federal de Electricidad [Federal Electricity Commission] Centro de Investigacion y Desarrollo Technologico del Sector Electrico Colombiano [Electrical Sector Research Centre] Circuit kilometer Comisión Reguladora de Energía [Energy Regulatory Commission] Direct Current Demand Management Systems Department of Energy Edison Electric Institute Electric Vehicle Gross Domestic Product Gigawatt Hybrid Electric Vehicle High Voltage Direct Current Intelligent Electronic Device kilometer kilowatt mile Megawatt North American Synchrophasor Initiative North America Electricity Regulatory Commission Office of Gas and Electricity Markets Outage Management Systems Phasor Data Concentrator Plug-in Hybrid Electric Vehicle Phasor Measurement Unit 94

19 Appendix RLDC Regional Load Dispatch Center RoW Right of Way SEMO Single Electricity Market Operator SGCC State Grid Corporation of China SIN Sistema Interconectado Nacional [National Interconnected System] SPDC Substation Phasor Data Concentrator T&D Transmission and Distribution TSO Transmission System Operator USTDA US Trade and Development Agency UPME Unidad de Planeación Minero Energética [Mining and Energy Planning Unit] W Watt WAMS Wide-Area Monitoring Systems Source: GlobalData 13.3 Bibliography Agrawal AK and Agarwal PK (2011). Challenges faced and Lessons learnt in implementation of first synchrophasors project in northern India. Northern Regional Load Dispatch Center. Accessed from: ARRA (2013). Track the Money. Recovery.gov. Available from: [Accessed on January 14, 2014] Bai J, et al. (2010). China power sector investment may rise 68 pct-report. Reuters, December 22, Available from [Accessed on April 30, 2014] Camargo (2013). Colombia s Progressive Smart Grid Approach. Siemens AG. Available on: [Accessed on July 17, 2014] Cooper Industries (2012). Enhancing Systems Stability Using Synchrophasors. Available from: esources/enhancing_systems_stability_using_synchrophasors_ppt.pdf 95

20 Appendix EEI (2012). EEI Survey Shows Transmission and Distribution Investment. Edison Electric Institute. Available from: [Accessed on July 4, 2013] Eirgrid (2013). North-South 400 kv Interconnection Development. Eirgrid. Available from: [Accessed on April 21, 2014] National Grid (2012). National Grid and ScottishPower Transmission award 1bn contract for first ever subsea electricity link between Scotland and England. National Grid. Available from: /9Feb2012.htm [Accessed on April 21, 2014] POSCO (2013). Synchrophasors Initiative in India. Power System Operation Corporation Limited. Available from: mber%202013%20-%20web.pdf Reuters (2013). UK Belgium power interconnector to start end Reuters, January 7, Available from: [Accessed on June 20, 2014] SE (2012). Smarter electricity networks could save 11bn, says report. Smart Energy The Informer. Available from: Hub/Article.aspx?ArticleID=1313&ArticleTitle=Smarter%20electricity%20networks%20could%2 0save%20%C2%A311bn,%20says%20report [Accessed on March 13, 2014] SEL (2010). Power Grid Corporation Chooses SEL for India s First Synchrophasor System. Schweitzer Engineering Laboratories Inc. Accessed from: [Accessed on June 20,2014] Smart Grid, Smart City (2014). About smart grid, smart city. Ausgrid. Available from [Accessed on July 13, 2014] 96

21 Appendix SmartGrid.Gov (2014). Recovery Act Smart Grid Programs. Smart Grid.Gov. Available from: [Accessed on July 4, 2013] Research Methodology GlobalData s dedicated research and analysis teams consist of experienced professionals with advanced statistical expertise and marketing, market research and consulting backgrounds in the energy industry. GlobalData adheres to the codes of practice of the Market Research Society ( and Strategic and Competitive Intelligence Professionals ( All of GlobalData s databases are continuously updated and revised. The following methodology has been followed for the collection and analysis of data presented in this report Coverage The global market section provides the technology overview, global market drivers and restraints. Nine countries, namely, Canada, China, India, the US, Mexico, Colombia, New Zealand, Australia and the UK are covered. Each country section discusses the transmission infrastructure of the respective country, details the smart grid market scenario and provides critical market parameters such as average price and market volume for synchrophasors Secondary Research The research process begins with extensive secondary research using GlobalData's proprietary databases and external sources. Investment estimates and market growth rates are determined by taking the following into consideration: Statistics and historic trends provided by government bodies, industry associations and equipment vendors Utility expansion plans Government and private sector investment Government regulations and policies 97

22 Appendix GlobalData s proprietary databases, such as the Capacity and Generation Database and the Equipment Markets Database Other insights obtained through secondary research and analysis of company websites, annual reports, investor presentations, industry and trade journals and association data Primary Research GlobalData conducts extensive primary interviews with industry participants and commentators in order to validate its data and analysis. A typical research interview fulfills the following functions: Obtains the interviewee s perspective on the market size, growth trends, competitive landscape and future outlook Validates secondary research findings Further develop the analysis team s expertise and market understanding 13.5 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. 98