A new report from Navigant Research analyzes the opportunity for networking equipment and communications services, as well as for automation and monitoring equipment, for secondary substations across Europe.
Across much of the continent, various market drivers are prompting distribution network operators (DNOs) to extend connectivity to secondary substations. This increased connectivity integrates the substations into SCADA systems and enables medium and low voltage (MV/LV) monitoring. In some cases, it also assists integration with distribution management systems (DMSs) and full-blown automation for self-healing. According to a report from led by aggressive investments in France, Italy, and Spain, European distribution utilities are expected to spend $23.9 billion on equipment and services to automate or monitor their secondary substations over the next decade.
“As more European utilities face increasingly high distributed generation (DG) penetration, investment across the region is expected to grow rapidly later in the forecast period, while spend slows in countries with major initiatives already underway,” says Richelle Elberg, principal research analyst with Navigant Research. “In the rest of Western Europe and in Eastern Europe, the growth in secondary substation monitoring will be somewhat tied to smart metering deployments, with considerations for DG and electric vehicle (EV) penetration as well.”
According to the report, between $2 billion and $2.5 billion will be spent annually on networking, automation, and monitoring equipment and communications services across Europe over the next decade. Drivers include the growing availability of smart metering communications networks at the grid edge, allowing for economic network extension to the secondary substations, the rising need for visibility and management at the edge to accommodate new DG, and growing EV charging demands.
The report, Market Data: Automation and Monitoring of Secondary Substations in Europe, examines the opportunity for networking equipment and communications services, as well as for automation and monitoring equipment, for seven countries and the rest of Western Europe and Eastern Europe. The seven countries are the UK, Spain, Germany, France, Italy, the Netherlands, and Sweden. Forecasts are provided for connected versus unconnected secondary substations, networking equipment, automation and monitoring equipment, and communications services (e.g., cellular, satellite, and digital subscriber line [DSL]). Breakouts for automated, monitored, and unconnected stations are also provided, as are the networking technology shares. An Executive Summary of the report is available for free download on the Navigant Research website.