T&D equipment market to reach $154.4 billion by 2017, new report suggests
SUBNET Solutions Inc | Monday, November 21, 2011
As electricity consumption continues to grow in U.S. residential, commercial and industrial markets, the demand for electricity, and in turn power generation, transmission and distribution equipment is expected to grow.
To meet the surging energy demand, many regions are looking at best practices for implementing new grid-related equipment used in the energy industry. Utilities are looking at new ways to distribute electricity from grid generators, which a recent report by Global Industry Analysts, Inc. found will increase demand for such products, topping $154.4 billion by 2017.
While electricity storage has been suggested, it is an expensive endeavor. But to be able to produce and deliver electricity almost simultaneously will take highly efficient transmission and distribution equipment powered by up-to-date software.
As the global economy crept out of an economic recession in 2010, a spike in energy demand was seen in residential, industrial and commercial markets, likely due to higher consumer purchases of new electronic devices and the resurgence of manufacturing activity. This revival led many utilities to allocate their long-term capital to new investment plans that were more geared toward the emerging smart grid market.
Large amounts of capital have been spent by utilities on substation automation, control systems, distribution management and other smart grid infrastructure projects since 2010. The study found that this may be the beginning of major growth, as companies are also taking on new projects to replace aging T&D equipment and new mandates have been developed to improve electric reliability.
The need for new electric grid equipment will be discussed at the upcoming fifth annual Grid-Interop, which will allow the top smart grid engineers to discuss implementation of interoperability in smart grid standards.
"Grid-Interop has provided the forum for collaboration that's enabled much of the progress related to Smart Grid interoperability to date," said George Arnold, national coordinator for Smart Grid interoperability at the National Institute of Standards and Technology.
At the event, a demonstration of new smart grid systems and devices will cover demand response, cybersecurity and transmission and distribution.
As the demand for new equipment grows, utilities will need the expertise and software of a solutions provider well-versed in the new grid.
SUBNET Solutions, Inc. has developed a fully interoperable system that allows a wide range of intelligent electronic devices to "speak" with each other, ensuring that substation management remains smooth and efficient as the smart grid continues to develop.
Substation Automation & Remote Access