13 Q1 Smart Grid Technologies - SGT 13 PDF

RESEARCH REPORT
Smart Grid Technologies

Transmission Upgrades, Substation Automation,
Distribution Automation, Smart Grid Information Technology,
and Smart Metering: Global Market Analysis and Forecasts
Published 1Q 2013
Bob Lockhart
Senior Research Analyst
Neil Strother
Senior Research Analyst
Section 1
EXECUTIVE SUMMARY
1.1
Market Overview
Smart grid technologies remain a colossal market. Growing from $33 billion in 2012 to $73
billion by the end of 2020 represents a compound annual growth rate (CAGR) of 10% on
already large numbers. Many complex smart grid programs have begun, but the scale of what
remains to be done is nearly beyond comprehension. Those revenue numbers are achieved
without notable activity in a number of nations that exceed 100 million in population and with
nearly no input at all from Africa and its population of 1 billion. All of this suggests that the
market is likely to continue robust growth beyond 2020.
This report gives an overview of the five smart grid applications defined by Pike Research:
Transmission upgrades
Substation automation
Distribution automation
Smart grid information and operations technology
Smart metering
Each of these applications is further examined in a more detailed Pike Research report, but this
report is the only work that brings all five applications together for a survey of key technology
issues and market forecasts across the spectrum of what has come to be known as smart grid
by Pike Research.
1.2
Market and Trends

As would be expected, there are no overarching statements to be made about a market as large
as smart grid. Different business drivers emerge for each smart grid application, in each region
of the world. Even in a single region, different countries may have different drivers for the
same application. Some examples include:
Transmission upgrades serve different purposes in different regions of the world. In North
America, there is a substantial increase in deployment of high-voltage direct current
(HVDC) transmission lines, often to bring renewable energy from distant generation plants
to load centers and, in some cases, to bring the power onshore.
Meanwhile, high-voltage (HV) transmission build-outs in India, China, Brazil, and Chile are
often concerned with getting power from newly constructed generation fleets to new load
centers. One example is HV transmission from Chinas Three Gorges Dam to cities which,
until recently, used to have low rates of electrification.
2013 Navigant Consulting, Inc. Notice: No material in this publication may be reproduced, stored in a retrieval system,
or transmitted by any means, in whole or in part, without the express written permission of Navigant Consulting, Inc.
Distribution automation practices can vary widely due to the design approaches taken in
different regions. For example, European distribution grids rely much less on feeder
circuits than do North American distribution grids, which results in a far greater number of
meters per substation in Europe. This has the potential to decrease distribution automation
expense in Europe over a like number of smart meters since fewer circuits exist to upgrade.
The forecasts reflect such nuances.
The North American smart metering market has entered a valley because stimulus fund
spending on advanced metering infrastructure (AMI) has dried up and the next wave of AMI
deployments most likely from small utilities using AMI managed services has not yet
begun in earnest.
Within Western Europe, smart metering is key to meeting clean energy mandates such as
the European Unions 20-20-20 by 2020 mandate. Meanwhile, some Eastern European
nations pursue smart metering as a means of energy theft reduction.
To summarize, there is no one-size-fits-all wisdom with which to assess the smart grid
technology market. This report, therefore, presents a more granular view of the markets by
technology type and by region. Many of the charts and forecasts are presented by application
instead of by region as Pike Research believes it more likely that any given vendor will offer a
set of capabilities in many regions rather than limiting their business to a single region and
attempting to offer every possible smart grid technology in that one region.
1.3
Market Forecast
Chart 1.1 presents an overview of smart grid technology revenue globally. The two largest
contributors are Asia Pacific and North America. Within these two regions, the most significant
inputs are from transmission upgrades in China, the United States, and starting later in the
decade India.
The chart also depicts the growing market in Europe due to the 20-20-20 mandates and the
large smart metering programs being pursued in Great Britain, France, and Spain. The Latin
American data reflects increasing revenue throughout the forecast period based upon Brazils
transmission build-out, plus smart metering programs in Brazil, Chile, and Mexico.
Chart 1.1
Smart Grid Technology Revenue by Region, World Markets: 2012-2020

$80,000
$70,000
($ Millions)
$60,000
North America
Europe
Asia Pacific
Latin America
Middle East/Africa
$50,000
$40,000
$30,000
$20,000
$10,000
$2012
2013
2014
2015
2016
2017
2018
2019
2020
(Source: Pike Research)
1.4
Additional Reading
Much of the content and forecasts in this report are examined more deeply in other Pike
Research reports. However, this report is the overview of smart grid technology as a single
industry, albeit a large and diverse one. The following Pike Research publications provide more
detailed analysis and forecasts for each smart grid application.
Substation Automation, published 3Q 2012
Distribution Automation, due to be published 2Q 2013
Smart Grid Information Technology, published 2Q 2012
Smart Meters, published 2Q 2012
The forecasts for high-voltage transmission were consolidated from several published reports:
High-Voltage Direct Current Transmission, published 2Q 2012
Smart Grid Renewables Integration, published 2Q 2012
Pike Researchs biannual Smart Grid Deployment Tracker
Section 2
MARKET ISSUES
2.1
Smart Grid Scope

Marketing departments have overworked the term smart grid to the point of exhaustion. Pike
Research defines smart grid as these five applications:
Distribution automation
Smart grid information and operations technology
Smart metering
A smart grid improves reliability and efficiency via the application of modern IT capabilities
alongside or in place of existing utility assets and networks. Each of the above applications has
similarities, such as the need to transmit data quickly and reliably. Likewise, each application
has its unique attributes, such as the meters role as utility cash register.
Figure 2.1
Scope of Smart Grid Technologies Report
Smart grid technologies can enable a utilitys business and operational objectives but are not
an end unto themselves. The foundational layers of a smart grid are: grid infrastructure
hardware, smart meters and automated metering infrastructure (AMI), grid telecommunications,
and software both infrastructure and application.
2.2
The Case for a Smart Grid

Smart grids overlay of modern technologies onto existing grids holds the promise of numerous
benefits to utilities, including:
Increasing the reliability of the network
Reducing energy lost in transmission and distribution
Optimizing asset utilization
Increasing the capacity of the network by controlling energy flows in a way that optimizes
the use of infrastructure
Reducing network congestion in crowded urban areas where construction of new

infrastructure is infeasible or impossible
Deferring or eliminating the need for additional generation resources
Integrating renewable-source energy generation that may have intermittent inputs at

varying voltages
Integrating other two-way inputs such as distributed generation
Accommodating electric vehicles (EVs)
Enabling customers to more actively manage their own energy consumption
Increasing predictive capabilities to avoid outages and disruptions
Some of these objectives have the potential to destabilize a grid if not properly planned and
executed. For example, Germany has such an abundance of residential solar generation that
the distribution system operators (DSOs) have had to make the residential grid inputs
dispatchable. Without that added control, the grid risks destabilization: the sun shines on many
residential solar generators at the same time, creating a risk of over-voltage events. This
example illustrates a case of unintended consequences, where one smart grid technology may
require the deployment of accompanying technologies to manage its impact. Application of new
technologies should be assessed for impact to the entire grid, not simply as point solutions to
specific problems.
Each utility is likely to have its own particular favorites from among the above objectives,
depending upon diverse factors such as geographic location, legislation, culture, age of its
infrastructure, and many others. There is no set smart grid solution that works for all utilities,
nor a set solution that works for all distributors or retailers. Therefore, utilities are likely to take
individual approaches to smart grids. Vendors would be well advised to keep that in mind.
Some utilities might start with smart metering while others may first busy themselves with
transmission upgrades. However, the number of smart meter deployments (estimated to total
832 million smart meters during the 2011-2020 timeframe according to the Pike Research report
Smart Meters) implies that quite a few utilities have yet to set out on an AMI course but are
likely to do so over the coming 7 years.
2.2.1
Improving Grid Reliability

Reliable electricity underpins economic development and growth. Business systems and
automation in fully developed economies have a near-total dependence on IT capabilities to
function at all times; those IT capabilities in turn depend upon reliable power. Developing
economies often lack sufficient electricity, reliable or not, which can obstruct economic growth
by limiting foreign investment into local business. Significant infrastructure projects, such as
the development of mobile telephony service in sub-Saharan Africa, may also require
simultaneous development of a reliable energy infrastructure to power the technology.
Regardless of any economys state of development, reliable energy is foundational to economic
success. However, reliable energy supply depends on the interworking of a complex set of
components. Smart grid technologies can significantly reduce the occurrence and duration of
outages or disruptions through automated problem detection and resolution and through
predictive modeling that identifies potential trouble spots before they flare up. Much of the
complexity of modern grids lies in the number and interrelationship of devices.
Humans are challenged to manage, or sometimes even comprehend, the large volumes of
assets, the attributes of those assets, and the relationships among the assets in a large grid.
However, managing such complexity is second nature for IT systems. Emerging data analytics
disciplines promise to unlock heretofore unknown wisdom buried in the masses of data
collected by smart grid technologies. Better understanding of relationships among assets is
likely to drive better understanding of trends within a grid and therefore replace corrective
actions with preventive actions.
2.2.2
Increasing Grid Efficiency

Enormous inefficiencies inhabit the current electricity delivery system. Most grids were
designed in an age of steady, predictable generation inputs and before the ascent of energythirsty personal and social computing. EVs are likely to introduce a new demand peak in the
middle of the night or else aggravate the existing demand peak normally seen during the early
evening. Uprating those networks to handle todays peak loads often means adding enough
capacity to handle ever greater peaks without recourse to more efficient grid operation. That
approach can lead to substantial capital outlays for peak-load assets that will, over their
lifetimes, have a low average utilization, being called into service only during extremely high
demand situations.
Smart grid technologies can provide real-time information about the state of the network and
even real-time decision making by software rather than people. Coupled with non-grid
information such as weather and energy demand history, the most likely grid demand scenarios
can be anticipated and the grid optimized for those scenarios.
These efficiency gains can lead to direct reductions in energy costs, including lower operating
costs for the utility, lower wholesale power costs through reduced spot purchases during usage
peaks, and reduced line losses that alleviate the need for higher-cost generation. Moreover,
increased grid efficiency can defer capital investment that might otherwise be required for a
static grid to keep pace with increased demand peaks.
2.2.3
Increasing Grid Capacity

Many grids balance energy supply and demand using manual calculations of expected
conditions. These calculations require great precision, and there is no denying the value of
experience in balancing a grid. However, decisions made in nearly real-time, using actual
conditions at the moment of calculation, can significantly increase network throughput.
Matching supply and demand starts with setting the appropriate network throughput but also
requires managing the amounts and sources of generation at the supply end and the level of
demand at the consumption end. Utilities are often forced to satisfy peak demands with
expensive units that run for relatively short periods high-cost energy from lowly-utilized
assets. Frequently those peak generation assets are less clean than the steady-state
generation assets.
Smart grids can enable load reduction strategies, such as turning off loads during critical
periods or satisfying peak demand using customers standby generation. Those demand
response strategies can, in turn, reduce the use of peaking generation units and their
incrementally higher cost of power. A smart grid that measures reduction in peak-period
demand can demonstrate direct financial and operational benefits of the new technology.
2.2.4
Integrating Renewable-Source Energy

Intermittent generation sources such as wind and solar present control challenges to grids that
were designed for steady-state generation inputs. Balancing supply with demand, energy with
reactive power, and voltage levels with frequency becomes more difficult as renewables
become a more significant component of generation capacity. Perhaps the most eagerly
awaited smart grid technology is financially viable mass power storage, which can potentially
level out the valleys inherent in many types of renewable-source generation.
Smart grids also enable smoother integration of distributed generation inputs such as
residential solar, campus grids, and the oft-mooted yet evasive vehicle-to-grid energy
transmission. These variable generation sources require a flexible grid that can live with their
intermittent inputs and fine-grained energy supply data to work out the financial aspects of
energy settlements between utilities and an increasingly diverse set of energy producers.
2.2.5
Operational Realities
A number of large central generating plants, both coal and nuclear, may be forced to retire early
due to clean air objectives. In the wake of the Fukushima disaster, some nations have already
abandoned nuclear generation, while in others it is possible that some nuclear units may not
have their operating licenses extended. These scenarios represent large generation losses
within grid networks, which could exacerbate transmission congestion problems. Fully
automated networks cope better with such fundamental changes in generation. Meanwhile,
distribution management systems could mitigate higher costs due to congestion pricing or flow
limits.
Regardless of the scenario, transmission and distribution (T&D) automation holds enormous
potential to deal with an uncertain future based on its ability to create a more flexible network.
Increased flexibility in the network provides more options for dealing with change whether it
arrives due to technical change, regulatory change, or force majeure situations. It is difficult to
explain such esoteric operational benefits directly to consumers, but regulators and other
decision makers are likely to be receptive. Clear business cases such as dynamic line rating
systems and voltage conservation can be a good starting point from which to win over public
opinion on smart grids. Improved public perception could then pave the way for programs that
require consumer acceptance, such as demand response and time-of-use billing.
2.2.6
Engaging Customers
Customer engagement remains a topic of great interest to utilities because of public backlash
against smart meters and the success of most dynamic pricing schemes, which is impossible
without customer acceptance. Allowing customers to directly manage how their energy is
delivered and priced can, in theory, lead to more efficient energy use, but there is (as of yet) no
conclusive evidence that customers are terribly interested in doing that. Whether that lack of
enthusiasm is due to customer apathy, utilities failure to engage their customers, inability to
hear what customers are really saying, or some other cause remains unknown.
Other industries demonstrate effective customer engagement in forms such as loyalty programs
and targeted marketing. It is likely that in time utilities will get the hang of it too. There are
success stories today, but consumers have yet to embrace smart meters as a means to a better
quality of life. Regardless, smart grid technologies capture enormous amounts of data that can
be useful later on for developing targeted interactions that are meaningful to groups, or even
individual customers.
2.3
Market Inhibitors
2.3.1
Customer Acceptance
It has become nearly a clich that utilities must figure out to how to effectively engage their
customers if smart-grid-enabled programs are to succeed. This slightly overstates reality: many
operational initiatives, such as increased use of data analytics to improve grid efficiency, are
largely hidden from consumers and may not require the amount of capital that drives a new rate
case. Still, many programs that require customer opt-in, such as demand response, may be
doomed to failure unless a utility has its customer base on its side.
There will always be a few early adopters for any utility program, but crossing the chasm to
widespread adoption will most likely require a more positive perception of utilities by
consumers. In the meantime, there is some uncertainty as to whether or not consumers care at
all about smart grids, other than an extremely vocal minority that is anti-smart grids. In
developed economies, the public debate on smart grids is dominated by a single question: Will
my energy bill increase?
Conversely, it is still common at industry conferences to hear customers referred to as
ratepayers. At one recent event a utility executive talked of using data analytics to push
customers into specific programs. The concept of pushing customers suggests that not all
utilities have yet grasped effective engagement.
2.3.2
Interoperability Standards
Interoperable products and industry standards for protocols, communications networks, data
frameworks, interfaces, and other technologies are an essential baseline for continued rapid
growth and widespread deployment of smart grid systems and solutions. Conversely, a failure
to adopt and embrace interoperability and standards could impede industry growth and slow
progress toward the realization of a smart grid.
Thus far, the United States has developed most of the recognized interoperability and cyber
security standards. The National Institute of Standards and Technology (NIST), through its
Smart Grid Interoperability Panel (SGIP), had the overall lead but passed off its responsibility to
the Federal Energy Regulatory Commission (FERC). At present, six broad categories of
standards are in various stages of development: internet protocol (IP), energy usage
information, EV and plug-in hybrid electric vehicle (PHEV) conductive charge coupler, use
cases for communication between plug-in electric vehicles and the utility grid, requirements for
smart meter upgradeability, and guidelines for assessing wireless standards for smart grid.
Action plans have been prepared to address electric storage interconnection, standard meter
data profiles, common price communication models, standard demand response (DR) and
distributed energy resource (DER) signals, harmonizing precision time synchronization, and
T&D power system model mapping.
Regulatory bodies in other countries talk of adopting the U.S. standards, either wholesale or
with minor variations. For example, the U.K. Critical Infrastructure Protection standard is a
republication of the U.S. Department of Homeland Security (DHS) Control Systems Security
Program (CSSP) guidelines, with both the U.S. and U.K. agency logos on the title page.
2.3.2.1
Politics
Federations such as the European Union (EU) are tremendously challenged to reach consensus
on issues like operational or business standards. Each member state wishes to protect the
interests of its own citizens at the expense of the Federation, if need be and to adopt
standards favorable to its own companies. The idea that 27 sovereign nations must harmonize
regulations is not unthinkable, but it does inhabit the realms of lower probability.
Company-to-company politics can be even more vicious, as many vendors strive to ensure that
regulations will favor their products or at least not disadvantage them. One participant in U.S.
standards working groups has described the meetings as poisonous. Utilities have also been
known to frequent policy making organizations to ensure that new regulation does not cause
them undue expense.
2.3.3
Land Use and Eminent Domain

A major barrier to new transmission lines in many countries is securing the right of way for their
installation. Rights-of-way require the acquisition of land that may be expensive under normal
circumstances but may become artificially expensive once the project is announced and land
owners begin bargaining for the sale. Environmental regulations are inconsistent and, in many
jurisdictions, untried. For those lines that cross several jurisdictions, the regulatory process
can be unpredictable. When the risks of a project stalling due to land acquisition costs or
regulatory proceedings are fully assessed, capital is difficult to secure.
Alternatively, countries with extensive property rights law can exercise eminent domain,
wherein a governmental agency can condemn private property for public use. Having such right
and exercising it, however, is fraught with political difficulties. For example, recently proposed
legislation in the United States seeks to give the FERC the right to declare eminent domain
over transmission corridors in the national interest, but such measures are strongly opposed in
many rural areas.
2.4
Technology Vendors
2.4.1
Vendor Types
The large number and many types of smart grid technology vendors can be subdivided in many
different ways. This report categorizes vendors as follows:
Grid infrastructure vendors
Smart meter vendors
Software vendors
Telecommunications vendors
Applications and services vendors
Systems integrators
Cyber security vendors
There are also many professional services vendors that specialize in planning or supporting
smart grid deployments, but they are not reviewed in detail in this report. Pike Research does
not forecast professional services markets because of the great diversity among types of
services, types of companies, and billing rates.
2.4.2
Barriers to Entry
Smart grid hardware products are capital intensive to design and manufacture, which limits new
market entry to well-funded startups, acquisitions, and some national champions funded by
their national governments. Utilities are traditionally conservative and therefore somewhat
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reluctant to purchase large capital assets from unknown suppliers, preferring to deal with
suppliers that may have been in the industry for decades or even a century or more. The safety
issues associated with many energy technologies adds expense both in the product itself and in
mitigating liabilities.
Software traditionally has very low barriers to entry in many unregulated industries the
proverbial two guys in a garage (now with a cloud computing account) can threaten years of
large corporation software research and development (R&D). Energy software is often
subjected to more regulation and safety concerns that may cause utilities to be conservative in
vendor selection, which is contingent upon what application is being considered.
Services whether managed services or specialties such as data analytics may have low or
high barriers to entry depending on the specific service. For example, data analytics could be
run in a secure hosted cloud environment. Other managed services may require a dedicated
and hardened data center plus significant numbers of specially trained staff.
Telecommunications that support smart grids are likely to be the same technologies used in
other industries so that there are no unique barriers to entry specific to the utility industry,
although entry barriers into the utility industry are quite high in their own right.
Professional services offer practically no barriers to entry other than the knowledge and skill
level of the consultants. Professional services are offered by firms as diverse as the large
executive consultancies and the smaller specialist consultancies. Success in professional
services derives more from industry knowledge than capital assets. Rates charged for
professional services vary greatly, depending on attributes of the professional services firm,
such as business overhead or partnership structure.
2.4.3
Industry Consolidation
Merger and acquisition (M&A) activity occurs at all levels in each smart grid technology market.
In addition to the oft-seen acquisition of clever technology start-ups, the past 24 months have
also seen several acquisitions of industry stalwarts, including:
Toshibas acquisition of Landis+Gyr
Schneider Electrics acquisition of Telvent
ABBs acquisitions of Tropos and Ventyx
Siemens acquisition of eMeter
Itrons acquisition of SmartSynch
Strategic acquisitions may be the only way to enter some smart grid markets with otherwise
high barriers to entry. In other cases, the acquiring company appears to be collapsing its
supply chain. Finally, some disruptive technologies are available only via acquisition, which
can preempt competitors from obtaining that same technology, at least for a while. Pike
Research has reported on a number of mergers and acquisitions in this market but little or no
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spinoff activity. That points to a market where most participants remain optimistic.
To analyze strategic partnerships would be far more complex and time-consuming than
analyzing M&A behaviors. Partnerships abound in the smart grid technology market: a single
well-reputed software provider may have partnerships with many control system manufacturers.
Also, familiar names from the enterprise IT world such as Cisco and Oracle have developed
significant partnerships to bolster their own smart grid offerings.
The rule of thumb for smart grid technology acquisitions and partnerships is: there are no rules.
Fierce competitors are sometimes aligned to pursue specific markets or even specific contracts.
Itrons acquisition of SmartSynch, which sells a cellular telecommunications platform that
competes directly with Itrons OpenWay mesh network, is symbolic of the mix-and-match
strategy that smart grid technology vendors routinely adopt.
2.5
Regulatory Issues
There is no concise summary of global smart grid regulation. While there are some well-known
regulatory drivers such as North Americas North American Electric Reliability Corporation
(NERC) and the European Unions 20-20-20 initiative, each addresses a subset of the energy
market. NERC dismisses distribution grids, and not all European nations are EU members.
Further, economies in different regions vary widely in their degree of development. Pursuing
smart grids today may be illogical for a nation where 75% of the people have no access to
electricity.
This lack of harmonization, while understandable, presents considerable challenges to smart
grid technology vendors who must design and build products to comply with overlapping and
sometimes contradictory regulations. However, that is most likely a permanent situation given
the diversity of energy markets within and among the global regions.
2.5.1
United States
2.5.1.1
Federal
The Energy Independence and Security Act of 2007 (EISA) established the Federal Smart Grid
Task Force, which is charged with coordinating and integrating the activities of federal agencies
and ensuring these agencies are aware of the others activities related to smart grid
technologies, practices, and services. There are 13 departments and agencies involved,
including the Department of Energy (DOE), the FERC, and NIST. In addition, the White House
published A Policy Framework for the 21 st Century Grid and established a Subcommittee on
Smart Grid as part of the National Science and Technology Council (NTSC).
Since the founding of the Task Force, a variety of agencies have undertaken a number of
actions. The DOE has administered the American Recovery and Reinvestment Act (ARRA),
funding projects that cover the entire range of smart grid technologies and implementations,
including $4 billion in grants and project investments and another $100 million in workforce
training programs. However, most of the ARRA funding has now been spent much of it in a
gold rush to deploy smart metering systems, sometimes without important related applications
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such as meter data management (MDM). Future smart grid projects in the United States will
likely require new rate cases to acquire the capital.
The FERC plays the role of national regulator (to the extent possible) and has jurisdiction in a
number of areas that impact smart grids:
Interoperability standards
Cyber security guidelines
Demand response markets and pricing
Market reforms to facilitate the further integration of renewable energy resources
Transmission planning and cost allocation
Reliability standards
Incentive-based rate treatment to encourage transmission investments
Enforcement of reliability standards has been delegated to the NERC, feared by utilities far and
wide because of its ability to levy fines for non-compliance with its Critical Infrastructure
Protection (CIP) reliability standards. NERCs CIP standards apply to the bulk electric system
(BES) defined as circuits operating in excess of 100 kV and generation assets rated at 1,500
MW or greater. Pragmatically, those bright line limits exclude all distribution grids and all
distributed generation from NERC CIP compliance.
2.5.1.2
Individual States
Each of the 50 states has some regulatory authority over electric utility operations. Investorowned utilities (IOUs) are regulated by public utility commissions (PUCs) or similar bodies in
the states in which they operate. Some large IOUs operate in multiple states and are,
therefore, subject to regulation by multiple PUCs. Municipal- and government-owned utilities
are typically regulated by city councils rather than a state entity, though exceptions exist.
Cooperative utilities are not generally regulated by state commissions, though exceptions exist
here as well.
Not surprisingly, states smart grid regulatory actions differ. Some states, like California,
Pennsylvania, and Texas, have mandated the implementation of smart grid programs. Others,
such as Colorado, Florida, and New Jersey, have spurred growth through funding. In those
regions, smart grid initiatives are tied to the broader goals of greater energy efficiency and a
cleaner environment.
2.5.2
Europe
The European Unions member states have had patchy success harmonizing regulations in any
industry, and energy is no exception. Control system vendors have complained to Pike
Research in interviews that it is impossible to build products that satisfy regulations in all EU
member states due to overlapping and sometimes contradicting regulations from one state to
another. However, there are some important EU-wide requirements.
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The clearest regulatory driver in the EU is the 20-20-20 Energy and Climate Package:
Minimum 20% reduction in greenhouse gases compared to a 1990 baseline
20% share of renewable energy in total consumption with mandated targets for each
member state
20% improvement in energy efficiency
Beyond 2020, the European Union has set more ambitious long-range targets for 2050 such as
80% reduction in greenhouse gas emissions, renewable energy accounting for 40% to 80% of
all generation, and a fully decarbonized energy and transport sector. Such substantial influxes
of intermittent power will require an efficient and flexible grid network.
Outside of the EU, many Eastern European nations are more focused on updating antiquated
grids and improving revenue protection. Those nations may consider cleaner and renewable
energy as a luxury that is not yet appropriate for them.
2.5.3
Asia Pacific
Regulation and energy policy are relatively new to most Asia Pacific countries. Chinas energy
administration, for example, was spread out over a number of different directorships, making
strategic coordination difficult. In 2010, the National Energy Committee (NEC) was formed to
step up strategic decision-making, planning, and coordination. The NEC is charged with:
Formulating and implementing energy development plans and industrial policies
Promoting institutional reform in the energy sector
Administering energy sectors including coal, oil, natural gas, power (including nuclear
power), new and renewable energy, and energy conservation
Organizing and carrying out R&D
Approving, reviewing, or examining asset investments of the energy sector in accordance

with the authority stipulated by the State Council
Energy forecasting and participating in emergency preparedness
Formulating and implementing national oil reserve plans and polices
Taking the lead in international energy cooperation
Participating in the formulation of environmental protection and climate change policies
Japan has 10 electric utility monopolies, all regulated by the Ministry of Economy, Trade and
Industry (METI). METI is conducting four smart grid demonstration projects that have a dual
purpose (reflecting the dual role of METI as both a regulator and a promoter of international
trade): to demonstrate smart grid initiatives as they can be applied as part of a national policy
and as an exportable product.
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Indias utilities are regulated at a national level by the Central Electricity Regulatory
Commission (CERC) and at the state level by 24 state electricity regulatory commissions
(SERCs). To a certain extent, the promulgation of national policies is constrained in much the
same way as in the United States inconsistent implementation by the SERCs and a lack of
central laws associated with renewable energy and energy efficiency.
Korea has a well-developed policy and regulatory framework to pursue smart grid
modernization. First recognized as a vehicle to achieve goals in the governments Low-Carbon
Green Growth law in 2009, smart grid projects are monitored through a public-private
partnership in the Korean Smart Grid Association.
Australia and New Zealand have advanced smart grid deployments and energy markets,
although smart metering in New Zealand has experienced a period of some disarray. These
two Westernized nations smart grid efforts combine to represent far less than 1% of the total
Asia Pacific population.
2.5.4
Latin America
Latin American countries have a variety of government and regulatory structures with varying
degrees of interest in smart grid. Brazil is the most advanced with extensive programs
throughout the country and a plan to install 63 million smart meters over the next 10 years.
Mexico and Chile have stated intent to deploy smart meters and enhance grid intelligence.
Some Caribbean nations are pursuing programs to provide less expensive and more reliable
energy, although those programs may often be proposed interconnects with grids on the
mainland or on more populous islands.
2.5.5
Middle East and Africa

The Middle East and Africa region includes a number of countries with severe energy poverty:
in some cases less than one-fourth a nations population has access to reliable energy. Some
of the better developed economies in this region have clear-set goals:
Israel has a stated goal to generate 10% of its energy from renewable sources by 2020.
Israels Defense Ministry must approve all wind generation plants.
Turkey has stated a goal to produce 30% of its power from renewable sources by 2023.
Unlike some other countries, Turkey includes hydroelectric in its scope of renewable
energy objectives.
South Africa, mindful of outages endured in 2008, is pursuing construction of 17,800 MW of

renewables generation by 2030 from a mixture of wind and solar technologies.
A significant majority of Africas 1 billion people are likely to remain underserved in the energy
market despite a nearly insatiable appetite for mobile communications among even the poorest.
New initiatives such as Coursera, which makes prestigious U.S. and European university
courses available at no charge to anyone with broadband internet, has attracted intense interest
in developing economies and could also drive up demand for energy in those regions.
15
2.6
Strategic Observations
Pike Research observes several key trends in the smart grid technology market for the next 3 to
5 years. As befits a still-emerging market, there are no clearly defined winners yet. The
following sections highlight areas that hold substantial opportunity for market participants.
2.6.1
T&D Enhancements Will be the Highest Priority Smart Grid Activities

Media coverage has focused on smart metering, most likely because metering is familiar to
consumers and is easier to explain than the complexity of distribution grid optimization. Yet as
this and other Pike Research reports have forecast, smart metering is a relatively small
component of smart grid technologies by nearly any measure other than number of endpoints.
Utilities consistently affirm both in words and gleam in the eye that they are more excited by
distribution automation than smart metering. Most of the grid improvements discussed in this
report will result from T&D improvements that the general public neither sees nor comprehends.
It is true, however, that smart metering can provide an immense amount of data to aid in
decision support for T&D improvements. Again, data analytics is likely to have a significant role
in designing and optimizing future grids.
Smart metering deployments will continue, though Pike Research has forecast that North
American smart meter deployments will decrease during 2013 and 2014 as stimulus funding
runs out. Regardless, deployment of a large AMI is a massive logistical and program
management challenge, also fraught with the dangers of consumer backlash.
Many developing economies are building out infrastructure for the first time. China has largely
completed a massive high-voltage transmission build-out, while India continues with its HV
build-out. These grids are being built with smart technologies from their inception.
2.6.2
Smart Grid Data Analytics Hold Immense Potential for Optimization

The 4Q 2012 Pike Research report Smart Grid Data Analytics summarizes the need for
advanced analytic capabilities applied to smart grid technologies:
Despite the fact that devices, sensors, communication equipment, infrastructure, and
software are required to build a smarter grid, the true capabilities of these systems are
only beneficial to the utility and society when the right decisions can be made with the
data they provide. Generation, network transport, and data storage are not the only
challenges the utility business faces in a modern power delivery system outfitted with
smart devices. In fact, while the data collected from these devices are extremely large
in volume and frequently transmitted, it is simply not usable or intelligible until it is
transformed into information to which either people or automated systems can respond.
The role of data analytics in creating this transformation is crucial to the smart gridenabled utility. Yet, despite myriad vendors offering data analytics applications to the
utility to solve these problems, what is most fundamental to the utility contemplating
their move into a fully integrated enterprise is a clear roadmap and strategy that
16
focuses on business objectives. It is possible to grossly underestimate the level of

coordination, money, resources, time, and experience it takes to integrate the dozens
of systems required to offer the level of optimization necessary to capture the granular
data provided by the smart grid and turn it into actionable information.
The amount of data generated by smart grid technologies is likely to be astronomical, and
finding the nuggets of wisdom hidden in the mountains of data may be beyond the processing
speed of the human mind. Other industries have had non-intuitive findings, such as grocers
discovering that they sell more pet food when it rains. Those types of correlations may only be
possible with the fast and free-wheeling types of analysis enabled with new software.
2.6.3
Large and Small Companies Can Play

The smart grid market attracts a diverse cast of players, from multinational corporations at one
extreme to entrepreneurial startups at the other. Both play critical roles in moving smart grid
technology forward. Large corporations can bring to bear untold amounts of capital and R&D
budget. However, those resources are often controlled by risk-averse managers whose first
priority is to remain employed. Startups may not have the same resources but are risk-takers
by nature and can afford a few mistakes with no worries about share price.
The demand response market stands as a prime example. DR providers saw a means to
aggregate a customer base provided that a sufficiently robust and adequate control and
monitoring system existed. The systems that utilities were installing under the smart grid
banner did not meet their needs, so they installed their own systems. By doing so, they created
their own demand. Even though DR requires that a smart grid be in place, there are DR
solutions available now, before most smart grid deployments have been completed.
2.6.4
Each Technology Can Support Multiple Winners

Utilities are methodical and pragmatic by nature. An often repeated mantra is, Just give me
the answer. With electric grids exceeding 100 years of age in many economies, the
requirements are well known, as are each utilitys financial constraints. Therefore, smart grid
technology acquisitions are more likely to be driven by requirements and price, with significantly
less attention paid to the underlying technical approach.
Smart metering provides a current example. Connecting millions of smart meter endpoints to
an AMI head-end can be accomplished through a number of technologies. Different AMI
vendors may propose power line, RF mesh, licensed spectrum, cellular, or even satellite-based
communications. Within each of those broad categories there are multiple technical
approaches. None has gained anything resembling dominance in the AMI marketplace,
although there are some trends, such as a historical prevalence of mesh in North America and
of power line in Europe. However, those trends change from month to month. Pike Research
does not observe that utilities favor one type of communication over another, as long as the
proposed technology meets the utilities well-known and detailed requirements at an acceptable
cost.
17
Section 3
TECHNOLOGY ISSUES
3.1
Categorization of Smart Grid Technology

Smart grid infrastructure hardware includes all devices and related systems that are
incorporated into the existing grid to either generate information about the state of the grid or to
control grid operations (automatically or on-command) based on that information. This report
categorizes smart grid technologies as:
3.2
Substation automation systems
Distribution automation systems
Smart meters and advanced metering infrastructure
Smart grid network technologies
Smart grid IT/OT software and systems
Cyber security
Transmission Upgrades
Transmission networks grids with voltage levels 69 kV and greater form the pathway
between existing large-scale electricity generation and distribution systems, as well as the
means by which bulk power flows through the network. In some regions, these networks are
interconnected allowing for import and export.
Power flows are sometimes constrained by transfer capacities in high-demand areas. These
constraints are aggravated by a frequent inability to build new large systems in congested
urban areas. Upgrading the existing infrastructure with new technologies can increase the
capacity of these lines such that they do not become limiting factors to economic growth due to
power costs, availability, or quality. In developing countries, where new infrastructure is
essential to economic growth, use of state-of-the-art efficiency and control technology can
reduce the amount and expense of infrastructure needed to supply reliable energy.
Renewable sources of generation present special challenges to grid operators because they
may input power intermittently and at varying voltages. A fossil-fired plant can input a steady
voltage 24 hours per day, but solar or wind generation will input energy only when the resource
is available (e.g., the sun is shining or the wind is blowing) and the input can be affected by the
intensity of the resource (e.g., wind speed).
These challenges can become manageable with intelligent control and monitoring systems but
remain difficult with older legacy transmission grids. Large wind power projects have been
constrained by the inability to use existing HV networks to transmit the energy to urban areas.
18
Some nations renewable power objectives may only be reachable using smart grid approaches.
Existing transmission networks can be upgraded by overlaying additional control, monitoring, or
measurement systems or by adding automatic control hardware. Most new transmission lines
incorporate these technologies into their design.
The smart grid, as applied to transmission networks, addresses two categories: higher
efficiency infrastructure and higher intelligence enabled by the deployment of robust sensor,
communications, and IT infrastructure throughout the grid, leading to optimization of operation.
Transmission networks attempt to improve grid efficiency via multiple approaches:
Dynamic thermal rating systems consist of weather and line tension sensors monitored and
evaluated by software at a central control station. Dynamic ratings can increase capacity
by 10% or 15% over static rating systems.
Power flow control and systems dynamics consist of flexible alternating current
transmission systems (FACTS) including fixed series capacitors (FSCs), thyristor
controlled series capacitors (TCSCs), and thyristor protected series capacitors (TPSCs)
static synchronous compensators (STATCOM), static volt-ampere reactive (VAR)
compensators, and variable frequency transformers
Synchronized phasor measurements over wide area monitoring systems (WAMSs)
Reactive power management
Advanced transmission conductors can significantly reduce losses without requiring major
changes to the transmission equipment infrastructure.
3.2.1
Direct Current Transmission

High-voltage direct current (HVDC) transaction has a greater capacity and lower line losses
than comparable alternating current (AC) systems. HVDC can be precisely controlled, and it
can interconnect unsynchronized high-voltage alternating current (HVAC) systems. However,
HVAC transmission can be preferable for shorter lines where line loss is too small to justify the
increased expense of HVDC transmission.
HVDC substation components are generally more efficient than their AC components
(transformers, switch houses, circuit breakers, heating, ventilating, air conditioning, lighting,
computing, and communications gear). Together these more efficient components can lower
the overall energy consumption of the system itself, which may yield enough savings in a
suitable timeframe to justify the additional capital outlay for a DC network.
Table 3.1 lists the HVDC transmission capacity for selected countries. As established and
emerging economies build out HV infrastructure, DC becomes a more popular choice for longrange projects. The current longest HVDC link is 1,287 miles long and ends in Shanghai, while
in Brazil a link of 1,550 miles is being constructed to end in So Paulo.
19
Table 3.1
High-Voltage DC Transmission Capabilities in Asia Pacific, Europe, and North America

HV
Over 1,000 kV
700-1,000 kV
500-700 kV
300-500 kV
Under 300 kV
HVDC
Over DC 800
kV
DC 560-800
kV
DC 400-560
kV
DC 240-400
kV
Under DC 240
kV
500 kV
DC+/-250 kV
China
Japan
1,000 kV
DC+/-800 kV
1,000 kV
(transition)
Korea
Australia
Taiwan
India
Indonesia
Cambodia
Singapore
Sri Lanka
Thailand
Nepal
Pakistan
Bangladesh
Philippines
Vietnam
Malaysia
Myanmar
Mongolia
Laos
United
Kingdom
Germany
United
765 kV
DC+/-180 kV
500 kV
345 kV
765 kV
DC+/-500 kV
500 kV
230 kV
400 kV
220 kV
500 kV
DC+/-300 kV
132 kV
500 kV
230 kV
500 kV
500 kV
500 kV
DC+/-350 kV
230 kV
220 kV
230 kV
765 kV
735 kV
Canada
DC+/-450 kV
DC+/-500 kV
DC+/-450 kV
400 kV,
DC+/-280 kV
380 kV
3.2.2
Synchrophasors
Transmission monitoring systems and sensors can measure minute changes in the network
using phasor measurement units that are time and location synchronized. These systems allow
the grid operator to improve grid stability (potentially avoiding outages over large areas),
coordinate resources between regions, and avoid blackouts.
Installation of synchrophasor data systems, phasor monitoring units (PMUs), phasor data
concentrators (PDCs), and WAMSs can achieve real-time control using quarter-cycle time and
location stamped data. These systems can improve situational awareness of impending
20
problems, early identification of potential problems, event detection and disturbance location,
and state estimations that allow for dynamic rate changes in the system. Currently, these
systems are used to diagnose blackouts; broader use may prevent future blackouts. A
simplified diagram of a synchrophasor system is shown in Figure 3.1.
Figure 3.1
Simplified Synchrophasor Data System Schematic
(Source: National Energy Technology Laboratory)
Nearly $1 billion in ARRA funding was awarded to a number of utilities and grid operators in the
United States to assist in the installation of synchrophasor data systems, including nearly 700
PMUs and communication systems for WAMSs.
In China, the State Grid Corporation (SGCC) is deploying WAMSs based on PMUs with GPS
and plans to complete 100% adoption of WAMSs in most power generators and 500 kV-level
substations nationwide by 2012.
3.2.3
Flexible Alternating Current Transmission Systems

FACTS are collections of hardware and software control systems that allow:
An increase of synchronous stability of the grid
Increased power transmission capability
Increased voltage stability in the grid
Decreased overall system transmission losses
Improved power quality in grids
21
FACTS hardware includes static VAR compensators (SVCs), STATCOM, and series
compensation devices. Table 3.2 lists the uses of FACTS hardware systems.
Table 3.2
FACTS Hardware Applications
Issue
Steady state voltage control
Dynamic and post-disturbance voltage
control
Improved steady state load sharing
Transient stability improvement
Device
SVC, SC
SVC,
STATCOM
SC
SC, SVC
Power oscillation damping
SVC, TCSC
SVC,
STATCOM
Improved power quality
Attributes
Continuous control inherent
Compact design
Very low losses
Inherently self-regulating
SVC: location critical
TCSC: insensitive to location
(Source: CIGRE)
Figure 3.2 shows a 500 kV SVC installed in Maryland on the Black Oak-Beddington
transmission line. The unit stabilizes line voltages within the PJM interconnection in the
eastern United States by rapidly changing reactive power levels. It also reduces congestion on
the line, increasing capacity on a number of lines within the PJM interconnection.
Figure 3.2
Large Static VAR Compensator, Allegheny Power Block Oak Substation
(Source: Allegheny Power)
When combined with FACTS, HVDC systems can aid in rerouting power, mitigating congestion,
and halting the spread of outages. HVDC is much more efficient than AC.
22
3.2.4
Dynamic Line Rating

Transmission lines are loaded based on static estimates without regard to weather or real-time
power flows. The primary load limit for these lines is based on estimates of thermal conditions.
Dynamic thermal rating systems allow for line loadings to vary with actual conditions, effectively
increasing their capacity. Most systems limit their capacity based on static line capacity
measurements that use regional worst-case conditions. Sensors placed throughout the network
can monitor real-time weather conditions, power flows, line tension, and line sag. Monitoring of
equipment conditions can also reduce equipment failures and maintenance costs.
3.3
Substation Automation
Substations, which exist on both transmission and distribution systems, perform two key
functions: voltage transformation and power routing. They vary greatly in size and complexity
based on the type (transmission or distribution), purpose (residential or industrial), and location
(above ground in dedicated yard or underground). Figure 3.3 is a photo of a distribution
substation with labels outlining the hardware components and power flow.
Figure 3.3
Distribution Substation (Components Annotated)
(Source: U.S. Occupational Safety and Health Organization)
Substations transform voltage up or down and act as junctions between circuits. For example,
as the bridge between transmission and distribution they step down the high voltages of the
transmission network to the relatively lower voltages of the distribution network. As a junction,
substations distribute inputs to output lines, providing a safe means to isolate circuits for
maintenance or repair. Substation hardware assists in load balancing, managing reactive
power, and providing voltage regulation. A substation may be manned or unmanned depending
on its function and the requirements of the equipment housed there.
23
Substation automation (SA) systems can eliminate many manual operations through a
combination of software and communications systems that process a variety of data from
sensors at the station. These applications can generate commands to circuit breakers,
isolators, and transformers to achieve a variety of actions, including:
Outage recovery support
Fault location identification
Fault current management
Load balancing and energy management (critical for the integration of intermittent
renewable generation)
Volt-VAR management
Equipment condition monitoring
In addition to local autonomous controls, SA systems communicate to the transmission and

distribution networks, providing input to their control systems.
3.3.1
Switchgear Circuit Breakers and Fuses

These devices make and break electrical connections as circumstances require. Some
switchgear is made with built-in intelligence, but often these devices particularly the higher
voltage models are more effectively controlled using supplementary relays and other
intelligent electronic devices (IEDs). Current transformers (CTs) and potential transformers
(PTs) are specialized devices used to gather and process performance data from breakers and
other major gear. Today, switchgear is also sometimes equipped with sensing devices that can
monitor the real-time health of the equipment. Such technology can also be retrofit.
3.3.2
Transformers
Transformers step voltage up or down, as required by a specific function. High-voltage
transformers found in transmission substations are specialized. Failure or destruction of any
one of the transformers can result in months of downtime and substantial expenses for a
replacement. As with switchgear, modern transformers carry onboard intelligence data
collection and communications but are also supplemented with ancillary IEDs to manage their
operation and performance. Some transformers have built-in voltage regulation capabilities
(tap changers), and others can be retrofit with external voltage regulation devices. Modern
transformers are also offered with built-in sensing to monitor device health. Again, these
capabilities can be retrofit to existing devices.
3.3.3
Relay Technology
Relays process and communicate signals between the control center and circuit breakers in the
field to initiate control actions such as remotely opening or closing a circuit breaker. The relay
network primarily exists for system and equipment protection; however, modern
microprocessor-based technology relays can serve additional monitoring and reporting
functions.
24
In some areas of the power grid primarily transmission networks most electromechanical
relays have been replaced with modern microprocessor-based relays. In distribution circuits,
however, including many distribution substations, older electromechanical technology remains
in use in many environments. Transmission circuits have far fewer lines (albeit carrying much
higher power) and other components than distribution circuits have making upgrades to newer
technologies a simpler project. Also, many distribution networks retain a run-to-failure
maintenance strategy, while transmission networks often do not, given the reliability and
expense risks related to a transmission component outage.
3.4
Distribution Automation
Distribution circuits connect local substations to the end use loads, including residential and
small-to-midsize commercial customers. The distribution lines are typically less than 33 kV.
They may be overhead on poles and/or underground and vary considerably as to their lengths
and number of end customers served. Normally, a distribution circuit will serve several
hundred customers (up to 1,500 in dense urban areas).
The topological and electrical design of the distribution feeder circuits is similarly diverse, with
significant differences in the relative cost and redundancy of the circuits. There are three main
designs:
Radial systems that branch out from substations (as a spoke on a wheel) are economical
but have no inherent redundancy. Thus, any break in the circuit interrupts service to all
customers downstream of the break.
Loop systems offer redundancy by providing a normally open connection downstream

between two feeders, allowing load to be shifted between them if a break occurs.
Primary networks consist of a grid of interconnected primary feeders supplied by different

substations for high service reliability requirements. Very few of these are in operation
today, and they are usually in dense urban areas.
Local distribution circuits have traditionally been statically configured, designed conservatively
for worst-case usage peaks. This leads to inefficiencies such as the use of higher than
necessary distribution voltage set points and the slow response to outages caused by manually
rerouting power distribution around network failures, which often requires a restoration crew to
be dispatched to the field to physically reset a switch.
Distribution automation (DA) consists of a set of intelligent sensors, processors, and
communication technologies that enables an electric utility to remotely monitor and coordinate
its distribution assets and operate these assets in an optimal manner with or without manual
intervention. DA has the potential to:
Improve power quality
Enhance equipment utilization
Reduce equipment maintenance and related repair costs
25
Create or support new revenue-bearing services
Decrease electrical losses on the distribution systems
Reduce overall electrical demand
DA achieves those goals by using applications that combine hardware components, network
communications, and software systems to analyze and recommend or actually affect solutions.
DA allows dynamic management of key elements of distribution circuits, including:
3.4.1
Volt-VAR optimization (VVO) through software systems that enhance the operation of
capacitor banks at substations
Fault detection, isolation, and restoration (FDIR) through the use of smart substation
relays, fault sensors, and reclosers
Digital protection and control automation (including feeder load balancing) with autoreclosers and sectionalizers
General monitoring/diagnostics applications and technologies that leverage supervisory

control and data acquisition (SCADA) and other monitoring systems
Volt-VAR Optimization
VVO reduces electrical losses, electrical demand, and manual inspections of capacitor banks
and voltage regulators. By measuring more extensively at points along the power line and
deploying applications capable of reacting promptly to volt control, voltage can be controlled to
meet specific needs through technologies such as tap changing load tap changer (LTC)
controllers. It can be manipulated to reduce power in narrower bands and conserve energy
during periods of high demand or under circumstances where infrastructure constraints require
demand reduction. VVO combines conservation voltage reduction and VAR control.
3.4.2
Conservation Voltage Reduction

The actual voltage set on each distribution feeder line needs to account for losses as the length
of the line increases so that the voltage to each premise is within the required specification.
Generally, this is set manually and infrequently (i.e., seasonally) to a conservatively high level
to minimize equipment-damaging low-voltage events. However, if the voltage can be managed
dynamically, the relatively large guard bands can be significantly reduced. Power reductions of
as much as 0.7% to 0.9% can be achieved.
3.4.3
VAR Control
VAR is a measure of reactive power, more of which must be supplied to maintain a given
voltage and power factor on a distribution line as the length and load of that line increases.
Capacitor banks placed along a longer distribution line improve the power factor and reduce
line losses. By dynamically controlling these capacitors, VAR control can be optimized.
26
Figure 3.4 illustrates the opportunity afforded by combining conservation voltage regulation
(CVR) and dynamic VAR control to maximize energy savings by reducing the voltage on a given
feeder line. Note that such a system may leverage many different smart grid elements,
including automated distribution components (capacitors, transformers, etc.), sensing devices
(including on-premise meters), communications infrastructure, and IT systems.
Figure 3.4
Typical Opportunity for Volt-VAR Control Technologies
(Source: Pacific Northwest National Laboratory)
3.4.4
Fault Location, Isolation, and Service Restoration

Fault location, isolation, and service restoration (FLISR) systems enable a utility to reconfigure
the electric grid remotely or automatically in response to planned or unplanned outages. Smart
substation relays are the most prominent example of this reconfiguration.
A fault on one distribution circuit can cause all circuits served by that substation to fail. The
fact that all circuits have failed makes fault location challenging in non-automated systems.
Once located, the fault must be manually corrected by a staff field visit. By contrast,
distribution automation systems that include software for FLISR can identify the fault location,
isolate the circuit where the fault occurred, and accelerate restoration. After being restored, the
circuit can be reenergized automatically. Service is restored more rapidly, with fewer
customers disrupted due to fault isolation, while avoiding the expense and time delay of a field
visit.
Distribution circuits with redundant circuit paths can leverage communications and control
capabilities to automatically sense the segment in which a fault may have occurred in a given
feeder and then automatically reconnect the remaining segments to another redundant feeder.
This can occur autonomously (without central operations control) but with coordinated
communications among the various devices in the distribution circuits. In such circumstances,
it is possible for auto-restoration software to restore customer service quickly.
27
3.4.5
Feeder Protection and Control

Feeder protection and control technologies provide protection, control, measurement, and
supervision of utility power distribution systems. These applications provide automated digital
control and protection at distribution voltage levels. Examples of DA controlled devices are
presented in Figure 3.5.
Figure 3.5
Example Distribution Feeder Devices
(Sources: As noted within the figure)
3.5
Smart Meters and Advanced Metering Infrastructure

The term smart meter has been applied in as many ways as there are marketing brochures, but
the basic definition is a unit to measure energy consumption that integrates onboard
processing, storage, and two-way telecommunications capabilities. Smart meters typically
capture three types of data:
Interval data: Periodic energy consumption readings at a frequency chosen by the utility.
Readings in 15-minute intervals are commonly discussed in the industry, although many
AMI systems are still taking readings only once per hour, day, or even month. Even when
readings are taken frequently, they are usually transmitted in batches of readings, perhaps
once every 4 hours or once per day.
Meter events: Special transactions that a meter can send to indicate specific occurrences
in its operating environment such as tampering, cover removal, sag and swell, and a lastgasp event before shutdown in theory, even in case of an unexpected shutdown.
Power quality data: Some meters advertise the ability to report up to 300 power quality
parameters, up to 60 times per second. Examples include instantaneous per-phase
voltage, phase angles, and reactive power.
28
Smart meters are the successors to automated meter reading (AMR) technologies and were
developed to reduce the labor required for meter reading and producing accurate bills. Smart
meters continue to offer that benefit, but their extensive data collection and two-way
communication capabilities enable grid efficiency programs such as dynamic billing and remote
disconnection.
3.5.1
AMI Network Architecture

Figure 3.6 displays typical network architecture for the smart grid.
Figure 3.6
Typical Smart Meter Network Architecture
The three principal network zones in an AMI system are:
Neighborhood area network A NAN is the communications network connecting each

smart meter within a local neighborhood, ultimately linking to the utilitys IT infrastructure.
Communications to/from NAN-connected meters are typically aggregated by a concentrator
connected to a separate WAN.
Wide area network The WAN is the communications network connecting the various
concentrators to the utilitys head-end systems. Often, a public wired or wireless cellular
technology is used and, therefore, the term is consistent with the standard telecom use.
However, proprietary wired technology (such as broadband over power line (BPL) and
dedicated fiber) or wireless technology (including licensed point-to-point and unlicensed
municipal Wi-Fi mesh) may also be used.
29
Home area network The HAN is a dedicated network that connects devices in the home
(such as displays, load control devices, and, ultimately, smart appliances) to the overall
smart metering system. The HAN may also be used to connect meters such as gas and
water to the NAN. The smart meter is usually (though not always) considered the gateway
between the HAN and the NAN. For those purposes, many smart meters contain two
radios: one to participate in the NAN and one to participate in the HAN.
These networks are implemented at the hardware layer as one of the following: mesh networks,
power line communications, cellular telephony, licensed spectrum with towers, and even
satellite communication is emerging for truly remote locations. A single AMI system may use
multiple approaches. For example, a utility with a densely clustered urban customer base might
use an RF mesh NAN for most of its meters but rely on cellular communications to reach a few
remote rural customers for whom a mesh network would be impractical.
There are few readily apparent trends in choice of technology other than an observation that
European utilities have more often selected power line communication, whereas North
American utilities have rarely selected this technology. Even the European trend for power line
communication is mainly due to the ENEL deployment in Italy, which for most of the past
decade has constituted over 90% of smart meters deployed in Europe. As other large AMI
systems are implemented, that percentage is likely to decrease. Section 3.6 entitled
Networking Technologies will describe these networking approaches in greater detail.
Smart metering has, for most of its existence, been based upon proprietary networking
protocols, but the industry is migrating to IP-based communications. In some cases, AMI
vendors have augmented their AMI products to support both proprietary and IP
communications. This approach supports future standards-based AMI systems while protecting
existing clients investment in their AMI. Meanwhile, a number of large AMI systems have been
deployed with meters from several competing AMI vendors making interoperability a must.
3.5.2
Smart Meter Technology

This section presents a brief overview of smart meters and how they operate. The Pike
Research 2Q 2012 report Smart Meters has a thorough examination of smart meter technology
and market issues.
A smart meter is made up of at least the following components:
Metrology: components that perform the actual power flow and other related
measurements
Display: manual user display providing ability for visual reading of meter data and other
functions
NAN communications interface: communications interface to the NAN, often provided as

a plug-in module
30
Optionally, a smart meter may also contain:
Remote connect/disconnect switch: remotely enables, disables, or limits power through

the meter
HAN communications interface: communications interface to the HAN, often included on

same module as NAN interface
Local optical and/or radio interfaces: for use by service technicians
Also note that the meters are provided in a number of different forms according to region. In
North America, the meters traditionally are housed in a round, glass-enclosed case and
mounted outside the premises, while in Europe the meters are box-shaped for possible indoor
installation. In Latin America, they may be installed in a cabinet and mounted atop a service
pole. There are a wide range of other specification options for meters (single phase, polyphase, load capacity, etc.). In addition, some AMI vendors provide the ability to embed the
NAN concentrator functions within a given meter.
All of these components may be provided as part of an integrated smart meter from a single
vendor. Alternatively, the communications components can be provided by a separate AMI
vendor. In the latter case, the meter vendor typically installs the communications module at the
factory for a small fee and ships the meter to the utility customer pre-integrated.
3.5.3
Smart Meter Standards

The functions of a smart meter are governed by a confusing morass of standards, some
competing and some identical. The main standards setting bodies many of whom collaborate
frequently include the International Electrotechnical Commission (IEC), the American National
Standards Institute (ANSI), the Institute of Electrical and Electronics Engineers (IEEE), the
European Committee for Electrotechnical Standardization (CENELEC), and NIST. There are
even multiple projects attempting to define a standard set of standards. For vendors this adds
a tremendous amount of variance (and therefore expense) to their product development.
31
Figure 3.7 shows the NIST conceptual diagram of a smart grid information network. In theory,
every box and bubble in this diagram is subject to one or more standards.
Figure 3.7
NIST Conceptual Reference Diagram for Smart Grid Information Networks
(Source: National Institute of Standards and Technology)
32
3.6
Networking Technologies
3.6.1
Overview of Smart Grid Networking

A number of communications systems exist within electric grids. These systems are often
legacy point-to-point, slow-speed links over private or leased telephone lines. SCADA systems
that communicate with substations are a good example. Other systems are often separately
installed, managed, and maintained.
Figure 3.8 displays a typical SCADA system layout. This approach is well-tested and durable; it
supports monitoring and control of SCADA devices throughout an industrial control network.
These SCADA deployments can be implemented with legacy serial protocol devices and
suitable intelligence at the control center, such as a data historian and digital signal processing
(DSP) to turn analog signals into digital data.
Figure 3.8
SCADA System General Layout
33
In contrast, a networking system supports multiple applications simultaneously, enabling crossutilization of connected resources. A fast and efficient network of technologies enables the full
utilization of an intelligent grid. Figure 3.9 shows a current smart grid network architecture.
The SCADA deployment illustrated above would be a subset of this architecture.
Figure 3.9
Smart Grid Networking Architectural Model
The model portrays a four-zone network model that includes these functional areas:
Substation WAN (SA-WAN) A backbone wide-area network often used to connect major
substations, as well as other enterprise office facilities; usually designed to meet the
bandwidth and latency requirements for major substation protection switching, backhaul of
other grid communications, and enterprise voice/video/data traffic.
Substation local area network (LAN) Local network used to connect various devices
(i.e., SCADA devices) within the substation. Historically, it consisted of a number of serial
lines but has evolved into a typical Ethernet LAN or a hybrid of the two.
Enterprise LAN The usual enterprise LAN found within any major business; typically
based on a hierarchy of switched Ethernet.
34
Distribution automation WAN (DA-WAN) The infrastructure that supports distribution

automation communications, usually some form of SCADA.
Advanced Metering Infrastructure WAN (AMI-WAN) WAN used to backhaul traffic from
the various AMI concentrator nodes to the enterprise control center.
AMI NAN Network connecting each smart meter to the associated concentrator node (if
used). Note that it is sometimes referred to as the field area network or local area network
(though not to be confused with the standard definition of a LAN).
HAN Connecting devices within the home to a commercial energy network.
Each of these networks and the devices within them communicate over a variety of
technologies in private, public, and hybrid systems. The specific technologies used for
communication vary in speed, capacity, and cost and are selected based on the desired
attributes within each of the networks described in the generic architecture. Figure 3.10
provides a general comparison of performance and cost for the primary technologies.
Figure 3.10
Performance and Cost Attributes of Primary Communications Technologies
3.6.2
Second Generation, Third Generation, and Fourth Generation Cellular

Second generation (2G) and third generation (3G) are the cellphone technologies familiar to
anyone with a mobile phone. Some utilities are becoming increasingly interested in cellular as
a communications option because of the low capital investment, variable cost structure of
purchasing connectivity by the megabyte, and the low-cost, standardized modules and chips
available for a wide variety of equipment and devices.
35
In Europe, general packet radio service (GPRS) is much more common. In a significant
example, British Gas in the United Kingdom installed 400,000 smart meters using a Vodafonebased GPRS cellular network. This project has since been suspended while Great Britain
awaits the announcement of the winners of tenders to supply smart meter data and
communications management for all of Great Britain (Northern Ireland is not included in these
tenders).
Emerging fourth generation (4G) cellular technologies offer a number of advantages for smart
grid applications, including higher bandwidth and quality-of-service guarantees. Depending on
the specific technology, distance from the base station, and network congestion, data rates of
50 Mbps to 100 Mbps (and even 1 gigabit per second) are possible, though 1 Mbps to 5 Mbps
should routinely be available in most situations.
Two primary technologies are emerging as 4G carrier networks: WiMAX and LTE. WiMAX, with
a long history of promotion by Intel, Sprint, Clearwire, and others, is currently being rolled out
but with limited traction among utilities. General Electric (GE) is the first to use WiMAX radios
in its smart meter deployment with CenterPoint Energy, but this is with a private WiMAX
network. WiMAX holds potential to meet the low-latency, high-bandwidth needs that many
companies see as a requirement for highly efficient smart grid deployments. Meanwhile, LTE is
the technology that most U.S. carriers (and many others worldwide) have identified as their 4G
technology of choice.
3.6.3
Power Line Communications

As the name suggests, power line communications (PLC) provide connectivity using existing
power lines as the communication medium. There are many types of systems (and
terminologies) associated with power line communications and nearly as many standards.
Furthermore, there are technologies aimed at in-building or in-home use, those aimed at
external electrical plant use, and those that support both. External plant applications are
considered here. Note, however, that a full survey of just these applications is beyond the
scope of this report. PLC systems make up the vast majority of NAN systems in Europe and
are experiencing strong interest in Asia, particularly in China and Korea.
Low-speed PLC systems use basic modulation schemes on a lower frequency carrier to convey
information at a rate of 10 bps. These systems will continue to find success in specific niches,
such as rural applications where the extended reach is valuable and in emerging markets where
basic meter reading and control are all that is required to support anti-theft initiatives.
Narrowband power line (NPL) systems are in common use in Europe where the high meter
densities justify NPL costs. Depending on local standards and specifications, NPL operates
between 1.2 and 2.4 kbps, though some systems can achieve 30 kbps.
3.6.3.1
Broadband over Power Line
BPL systems generally refer to PLC systems supporting data rates of more than 1 Mbps. One
BPL vendor, Amperion, has focused its efforts on BPL application in the transmission segment,
36
offering high-bandwidth links between substations on the HV transmission line. The use of BPL
for these applications averts the costs associated with laying fiber, especially in areas of rough
terrain, and can potentially offer better reliability and performance than microwave links.
3.6.4
Metro-Scale Wi-Fi
Metro-scale Wi-Fi, also known as municipal Wi-Fi, is another aspirant to the smart grid
communications market, primarily in distribution and/or AMI backhaul applications. Its mesh
topology, which could include up to 10 routers per square mile in dense urban areas, provides
an adaptive, secure, and low-latency network that could be useful in smart grid deployments.
At the same time, Wi-Fi offers mobile connectivity that is useful for workforce management
applications. Metro-scale Wi-Fi equipment is relatively low-cost; unlike cellular, the recurring
costs of service are quite low.
3.6.5
Fiber Optics
Various forms of fiber optic communications systems are in use throughout the grid, primarily
(though not exclusively) in substation applications. The inherent bandwidth, noise immunity,
and security associated with fiber represent clear benefits, though it remains a costly option
especially due to the costs of laying private fiber along any significant distance.
Within a substation, fiber has safety and electromagnetic interference advantages between the
electronic controls and the substation equipment. As a result, a large percentage of SCADA
Ethernet, as well as earlier proprietary serial links, use multimode fiber as the physical
communications media.
Between substations a number of fiber backbone technologies are in use. Utilities often
leverage their transmission rights-of-way to deploy dedicated fiber links and even lease some of
this fiber to telecommunications companies.
3.6.6
Coaxial and Copper Cable

Outside the usual local Ethernet cabling found in enterprise and substation LANs, private
copper connections are uncommon but can be found where private cabling may have been
installed. A variety of dedicated modem technologies, usually used to extend serial SCADA
connections, can be used on such private connections.
3.6.7
Proprietary RF Mesh
Radio frequency-based mesh networks have emerged as the leading technology for NAN and
distribution automation deployments in North America. A mesh network forms a web-like
network topology. Any node not in direct communication range of its target destination (such as
a meter sending data to a concentrator) will have its data relayed by another node in the mesh
(e.g., another meter). A given data packet between a source and destination node may hop
through many intervening nodes. Hence, the effective range of the network is extended well
beyond the range of any single transmitter or receiver.
37
3.6.8
Satellite
Satellite communications have been used for many years in utility networks for SCADA
connectivity to remote substation sites that cannot be economically reached by other
communications methods. The most current satellite technology for smart grid applications
leverages very small aperture terminal (VSAT) systems that use smaller (less than 3 meters
and often less than 1 meter) antennas, simpler terminal equipment, and offer better
performance than earlier satellite systems. These VSAT solutions provide:
Broad geographic coverage, including in areas where standard wired and wireless
technologies cannot reach
Flexible data rate performance, ranging from 16 kbps suitable for basic SCADA connectivity
up to 1 Mbps in support of voice, video, and general data applications
Reliable connectivity, suitable for day to day operation or as a backup to terrestrial systems
during disaster recovery situations
Full IP-based integration with standard wired or wireless terrestrial networking technologies
Advances in satellite communications, in particular VSAT technologies, have expanded the

range of potential applications within the smart grid. Moreover, satellite communications
networks are somewhat flexible, incorporating either a star or mesh topology, or in some cases
a hybrid of star and mesh. These topologies can be used to accommodate varying geographic
network profiles, cost models, and redundancy plans for utilities that need a wide-area
communications network.
3.6.9
Networking Technology Comparison

Each of the technologies discussed have different attributes, summarized in Table 3.3.
Table 3.3
Relative Comparison of Smart Grid Communications
Technology
Leased Lines
Wired Broadband
Private Fiber
Narrowband PLC
BPL
RF Mesh
Metro Wi-Fi Mesh
Private RF
Pt-to-MPt
Private WiMAX
Satellite
Bandwidth
Low
Medium-High
High
Low
Medium-High
Low
Medium-High
Latency
Low/Low
Low/Low
Low/Low
Medium/Medium
Medium/Medium
High/High
Medium/High
Reliability
Medium-High
Medium
High
Medium
Medium
Medium
Medium-High
Security
Medium
Medium
High
Medium
High
Medium
High
Low
Medium/Medium
Medium
High
Medium-High
Medium
Medium/Medium
Medium/Medium
Medium
High
High
High
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None of these technologies is considered unreliable or unsecure, although security and

reliability can each be compromised by the quality of the implementation. The characterizations
above are based on typical examples of uses within utility applications today.
3.7
Software and Services

Smart grid deployments improve upon existing grid control capabilities by offering faster and
more automated control. Additionally, modern grid devices collect enormous amounts of data
from which newer applications and analytic engines can identify previously unavailable patterns
and wisdom. These modern approaches are examined in detail in two 4Q 2012 Pike Research
Reports: Smart Grid Data Analytics and Meter Data Management.
3.7.1
Outage and Fault Management

Outage detection by utilities has often been a process of managing and correlating phone calls
from customers who report an outage at their home. AMI and DA technologies now enable full
instrumentation of the distribution network, allowing automatic detection and even recovery
from outages. Utilities can collate meter outage events from the AMI system and outages from
traditional sources to gain better visibility into network reliability.
Ironically, this can make metrics such as System Average Interruption Duration Index (SAIDI)
look worse because meter events identify previously unknown situations, such as outages that
occur when all occupants of a house are away at work or asleep. However, the increased
outage information gives utilities a better understanding of their grid, and when those events
are overlaid on a geospatial information system (GIS) it can create a heat map of where a
distribution grid may be having problems. That increased awareness can help with strategies
for grid maintenance and preventive actions.
3.7.2
Asset Management and Monitoring

A fully, or even partially, networked substation, distribution, and metering infrastructure opens
up opportunities for better asset management and tracking if the back-end IT infrastructure is
equipped to support this functionality. Asset management enables active monitoring of
distribution transformer performance as demand patterns change due to new technologies, such
as PHEVs. This can significantly help utilities whose transformers were purchased years ago
and have predicted lifetimes modeled on daily high-low load profiles (high during day, cool
down during night). EV charging may create a second demand peak in the middle of the night
or, even worse, exacerbate the after-work demand peak that already exists. An instrumented
distribution network (with smart meters and distribution automation) could maintain detailed
actual versus planned profiles of virtually all assets if the IT systems are implemented to
support this.
3.7.3
Distributed and Alternative Generation Integration

The implementation of distributed generation (DG) assets in residential and/or light commercial
applications (such as solar, wind, fuel cells, etc.) presents many challenges to normal utility
operations. Not the least of these is the effective conversion of the local distribution power
39
system from a one-way pipeline (from generation to consumer) to multi-way systems of power
flow. An instrumented and automated distribution system should allow for better management
of the dynamic power flows resulting from this trend. However, such a conversion presents a
large challenge to utilities, both physically in the distribution plant and operationally.
3.7.4
Demand Response and Dynamic Pricing

Demand response implementations, especially at the residential level, represent another side of
the same coin in terms of managing the use and reliability of the distribution network. Just as
larger-scale demand response is becoming a tool for balancing supply and demand within
larger regions, smaller-scale demand response flexibility may become an important tool to
balance supply and demand within smaller regions, perhaps even within a substation territory.
This type of local management may be too complex to seriously contemplate versus overprovisioning the capacity of the local power network, but it will be an interesting industry
discussion. Pike Researchs 4Q 2012 report, Residential Demand Response, examines these
issues in great detail.
3.7.5
Contingency and Capacity Planning

Distribution network planning has historically been a relatively static exercise, with time
horizons measured in years and significant margins built into the systems. For example, even
advanced Volt-VAR control system configurations are often based on yearlong (i.e., fourseason) studies of a feeders load profile with subsequent SCADA programming to match the
measured results. However, with the highly dynamic and potential two-way loads presented by
PHEVs and DG, these types of studies will be essentially useless. The sensors built into the
distribution network via smart metering, distribution automation, and substation automation
technologies will need to be leveraged into the contingency and capacity planning processes.
3.7.6
Workforce Automation
An often overlooked but important aspect of automation technology deployment is the
opportunity to dramatically enhance the effectiveness of the mobile field workforce. Equipping
field workers with mobile data communications technologies, such as 3G wireless cellular (or
WiMAX) or near-ubiquitous private Wi-Fi, provides them with real-time access and insight into
major field systems and the status of the network. Such tools significantly surpass the two-way
radio dispatch and push-to-talk cellular systems often in use today; however, security and
access control are related problems that must be considered as these systems are enabled.
Additionally, workforce automation can accept inputs from many other applications to create a
consolidated work list that reduces the number of crews that must be sent into the field.
3.7.7
Data Historian
Data historian applications capture control data from many devices then time-synchronize and
normalize the data for use in control applications. Even very old devices can be included in the
analysis: modern relays often contain DSP capabilities to convert the analog signals from older
devices to digital data that modern control software can analyze.
40
Data historians themselves simply capture and prepare that data but perform no further
processing. They will typically have defined collectors for hundreds of control devices. After
their work is done, the data can become input to many commercial off-the-shelf (COTS) data
analytics engines or specific tools such as a custom-built spreadsheet to analyze a specific
situation for a single utility.
3.8
Cyber Security
Smart grid cyber security remains an area of much discussion, although not an area of much
investment. Some utilities have taken initiatives to develop full cyber security architectures and
implementation plans. However, the industry as a whole continues to address cyber security as
a cost limitation exercise: investment is largely intended to avoid fines for non-compliance with
specific regulations. Where no fines are possible, the likelihood of cyber security investment is
much lower. Therefore, utilities and power grids are massively under-protected compared to
the threats that they face. The 4Q 2012 Pike Research report Industrial Control Systems
Security examines these issues in great detail.
Regardless of investment levels, smart grids face specific risks that cyber security must
mitigate. Most discussion of smart grid risk centers upon communications and operations risks,
which includes well-known technologies such as firewalls and intrusion prevention. Those risks
remain critical to mitigate but must be considered in the context of a large set of risks to smart
grids, which are:
Communications and operations risks
Privacy and data protection risks
Access control risks
Asset risks
Physical and environment risks
Human resources risks
A full list of cyber security technologies would take an entire report, and indeed Pike Research
has published several reports on smart grid cyber security. The following is an overview list of
technologies to be considered, in approximately the order they would arise from beginning to
end of a cyber-security deployment:
Identify and access management
Multi-factor authentication
Defense-in-depth security
Role-based access control (RBAC)
Perimeter security devices, such as firewalls and intrusion detection or prevention
Redundant or backup communications routing using different physical layers
41
Application whitelisting
Restricted use of removable media
Embedded device security
Antivirus software
One-way data communication technologies
Ruggedized devices
Security overlays on legacy systems (sometimes called bump-in-the-wire)
Device-to-device authentication
Network and device resiliency
Change management
Software patch management, especially for control networks
Security event logging and correlation
Situational awareness
Compliance assurance
Security incident response
Cyber forensics
Business continuity planning (BCP)
Protecting smart grids appears to be more a matter of a utilitys will to do it than anything else.
The technologies exist and Pike Research has profiled a number of willing and able vendors in
its Pike Pulse reports. However, utility security managers and vendors report that funding for
cyber security programs remains difficult to obtain. On a positive note, in the past year Pike
Research has observed a significant uptick in the number of professional services engagements
at utilities to identify next steps for cyber security. Unfortunately, there is no guarantee that
consulting will translate to deployment.
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Section 4
KEY INDUSTRY PLAYERS
4.1
Grid Infrastructure Vendors
4.1.1
ABB Group
Zurich-based ABB is one of the largest engineering companies and conglomerate companies in
the world with operations in more than 100 countries. The company is the worlds largest
builder of electricity grids, and it provides the entire spectrum of devices from power products
to automation products to complete power systems. As such, ABB plays an intricate role in the
evolution of smart grid, as it will allow utilities to be active purveyors of energy, rather than
passive (as is generally the case at present).
The company has numerous solutions, including its Network Management product, which
provides clients with network control SCADA systems that include advanced applications for
energy transmission and generation and distribution solutions. In addition, ABB provides
integrated networks with services for communications such as voice, video, data including
legacy data IP and Ethernet services and protection signaling, all on the same network.
4.1.2
Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent is a large, global telecom solutions and services
company working in over 130 countries. Alcatel-Lucent offers a range of services, including
project management, consulting, network design and integration, procurement, deployment,
operations, testing, and ongoing maintenance of a multivendor network.
Network outsourcing is a core offering within the companys services portfolio. As a major
network services provider, Alcatel-Lucent has been involved in supporting smart grid
deployments for a number of clients in the United States, as well as in many other countries.
The company provides a communications network solution, SmartGridNet. This solution
interconnects all the different devices from generation, transmission, and distribution to
consumers homes and then links them to control centers. SmartGridNet also supports SCADA
while enabling tele-protection, remote meter reading, and operational voice and data. The
solution assists utilities in addressing their communications transformation, multivendor
integration, and managed services.
Alcatel-Lucent has worked on smart grid projects with U.S. utilities, such as OG&E,
Pennsylvania Power and Light, Electricity Power Board of Chattanooga, and Pepco. It is
involved with about 25% (by value) of the stimulus projects for smart grids in the United States,
mostly working on meter and sensor communications with a focus on demand management (in
most cases), although one is a DA project.
Working with Vodafone Germany, Alcatel-Lucent has developed a managed service offering for
MDM aimed at smaller German utilities that lack the resources to develop, implement, and
support their own solutions. The service uses Alcatel-Lucents Smart Metering Management
43
System, and it is also providing integration services for connection to the energy suppliers
operational management systems. Vodafone Germany is providing the secure connection
between the meters and the multimedia messaging service (MMS) via either a fixed-line DSL or
a GPRS connection. The first contract for the new service was with the municipal utility
Stadtwerke Pasewalk in eastern Germany.
4.1.3
Alstom Grid
Headquartered in Levallois-Perret, France, Alstom Grid is a multinational conglomerate that
holds interests in the power generation and transport markets. Alstom is active in several fields
including the power grid, hydroelectric power generation, transportation (such as Frances Train
Grande Vitesse), nuclear power plants, and environmental control systems.
In power grid, Alstoms activities include the design, manufacture, service, and supply of
products and systems for the power generation sector and industrial markets. The company
has supplied major equipment for 25% of the worlds existing power plants.
Alstom has a leading share of the control center software business. It anticipates considerable
growth for its software solutions as synchrophasors are increasingly integrated to generate data
at unprecedented rates. These systems will begin to eliminate artificial utility boundaries, and
this will necessitate the same displays across boundaries.
4.1.4
American Superconductor
American Superconductor, based in Devens, Massachusetts, makes a variety of products
including advanced electrical conductors. The array includes power converters and electrical
control systems for wind turbines, scalable and mobile dynamic VAR control systems, and DC
superconductors. High-temperature superconductors have the ability to conduct 100 times the
current of copper wire of the same dimensions, resulting in a much smaller footprint for rightsof-way and much lighter components. In September 2011, American installed the worlds
longest distribution voltage high-temperature superconductor in Korea for the Korea Electric
Power Company (KEPCO).
4.1.5
Cooper Power Systems

Cooper Power Systems is headquartered in Waukesha, Wisconsin and is in the business of
engineering and manufacturing medium- and high-voltage electrical equipment, components,
and systems for power delivery to homes, industries, businesses, and institutions. The
company is a division of Cooper Industries, based in Maynooth, Ireland. Cooper offers software,
communications, and integration solutions for utilities worldwide; more than 200 electric
cooperatives in the United States utilize the companys AMI solution, as well as its Yukon
Platform. The Yukon platform allows a utility to implement all of the tools for a smart grid
from DR to outage detection and notification and protective relays.
44
In April 2010, Cooper purchased Eka Systems, a small provider of IP-based wireless RF mesh
systems for smart grid applications. Eka Systems provides solutions such as multi-tenant
submetering for use in a number of locations, including malls. It also provides solutions to
smart meter deployments in Ecuador, Russia, and Singapore.
4.1.6
CURRENT Group
Founded in 2000, CURRENT is a private company based in Germantown, Maryland that
provides utilities with smart grid abilities, increasing the efficiency and reliability of the grid
through its CURRENT Smart Grid solution. Within this platform are four major sectors:
distribution management, system optimization, sensing and communications, and the
companys trademarked OpenGrid software. Originally founded as a BPL company (and
involved in some high-profile utility-based BPL services market failures), CURRENT is now
focused on leveraging its BPL technology for distribution automation and other smart grid
applications.
Among CURRENTs solutions offerings, several include Volt-VAR control, dynamic voltage
optimization, phase load balancing, and various sensing products. The companys sensors can
be deployed with different communications technologies, such as fiber, 3G wireless, DSL,
WiMAX, cable, and BPL.
CURRENT is a member of Xcel Energys SmartGridCity in Boulder, Colorado. It also provides
technology to multiple projects funded by the EU, including developing communications
technology for the Open Public Extended Network Meter Consortium (which includes Iberdrola,
EDF, and Enel). In addition, the company is a technology provider for the ADDRESS
Consortium. This consortium is focused on appliance control and optimization, as well as
distributed energy resources.
4.1.7
Daiichi Electronics
Daiichi Electronics, founded in 1955 in Tokyo, Japan, is a manufacturer of measurement
instruments. The companys products which include controllers, sensors, relayers,
transducers, and submeters meet high levels of quality assurance with ISO 9001:2008
certifications in every product category. Its submeters cover a wide range of energy monitoring
and power quality dimensions and are generally targeted at the higher end of the market. Its
submeter product line offers several types of displays (LCD, digital displays, and others) and
can be easily connected to a computer or the Internet for remote monitoring and management.
4.1.8
Eaton
Cleveland, Ohio-based Eaton is a global diversified supplier of power management components
for electrical, hydraulic, and pneumatic controls in the aerospace, automotive, and
commercial/industrial construction markets. Historically an industrial conglomerate, Eaton
shifted focus in 2000 to become a power management company, taking on more than 50
acquisitions and 10 joint ventures. Electrical product lines include circuit breakers, vacuum
breakers, power distribution assemblies, contactors and motor starters, operator interface
45
hardware, engineering systems, diagnostic and support services, metering systems, power
management software, surge protection devices, and uninterruptible power systems.
Following its recent acquisition of automation company Moeller, Eaton partnered with Niko, a
Belgian supplier of residential and light commercial controls and automation systems. The
resulting Xcomfort system, available in Europe and Asia, uses the Nikobus wireless mesh
networking system at 868.3 MHz for control and display of lights, blinds and shutters, heating,
and ventilation by RF switches; the system uses remote control via mobile phone apps and
cable television interfaces.
Eaton has been active in the submeter market for several decades, in particular since its
acquisition of Cutler-Hammer in 1978. Today, its submetering business falls into its overall
electrical distribution business. It focuses on the mid- to high-range of the submetering market,
with both standalone and integrated submetering systems. The Power Xpert and IQ product
lines cover a range of capabilities. As Eaton expands its energy services business, which it has
expanded through its recent acquisition of EMC Engineers and its qualification as a U.S. DOEpreferred energy service company (ESCO), submetering will play an increasingly important role
in its end-to-end energy efficiency solutions.
4.1.9
EFACEC (Advanced Control Systems)

EFACEC, which is headquartered in Portugal, purchased Advanced Control Systems (ACS) in
2007 to shore up its automation offering. ACS is headquartered in Norcross, Georgia. In North
America, it is second in remote terminal unit (RTU) installations behind GE Digital Energy.
While ACS delivers products worldwide (with the exception of China and Japan), its strength
remains in the North American retrofit RTU market.
The companys smart grid substation and feeder automation product line includes the following:
Substation-level automation
Connex 30/Connex 60
Bay-level automation
TPU 420 Controllers
Distribution feeder automation
NTX-20 Pole-Top Controller
D 060 Fault Detector
The ACS product line supports the leading traditional industry protocols, including DNP3.0,
Modbus, and many others, but currently offers no support for IEC 61850, as it has little real
project activity using IEC 61850 in its primary markets. ACS has invested strategically in the
retrofit RTU market with products and kits designed specifically to replace other vendors aging
RTUs while keeping the existing wiring and termination boards. Custom hardware and cabling
have been designed for specific RTU models to make the retrofit as easy and cost-effective as
46
possible for its customers. Estimations are that 60% of ACS RTU business is in retrofit
situations.
4.1.10
Ericsson
Headquartered in Stockholm, Sweden, Ericsson is a major global provider of
telecommunications equipment and services to network operators around the world with over
1,000 networks in more than 175 countries. About 40% of all mobile calls pass through
Ericssons networks.
Ericssons services division provides a wide range of network and professional services,
including consulting, network design, systems integration, and network implementation,
support, and outsourcing representing about 38% of Ericssons total sales. During the last 15
years, the company has signed over 300 managed services deals (i.e., network outsourcing
deals). It has invested over $1 billion in tools, systems, and processes to build a global
outsourcing capability that includes network operations centers in Romania and India.
Ericssons foray into the smart grid was a logical extension of the companys long history and
significant capability as a network and telecom services provider, especially in the outsourcing
arena. In March 2006, the company announced that it had been awarded a smart grid managed
services contract with Acea, an Italian-based utility that is engaged in the production and supply
of electricity, environmental management, and integrated water services. More specifically,
Acea manages energy transmission and distribution in the Rome area. This 10-year
outsourcing deal is an end-to-end services offering that covers the entire smart metering
function, including machine-to-machine (M2M) smart metering, data control center management
to support billing/provisioning for customer relationship management, quality management,
distribution network management, and meter and concentrator management. Data collection,
cleansing, processing, and transferring, as well as information storage, are key elements of this
managed services contract. The company now serves eight more utilities with its smart grid
managed services offerings in that country.
Ericsson believes it can leverage its smart grid managed services experience in Italy to other
parts of the world to grow this business at a robust pace in the coming years. The company
also aims to expand its managed services to encompass the entire smart grid communications
infrastructure. Due to its ability to scale and manage large and complex projects, Ericsson
believes it is ready to do so effectively and efficiently. With a strong focus on innovation, the
company aspires to become a mobile network leader to support a world of connected devices
where everything that can benefit from being connected will eventually be connected.
47
4.1.11
Fujitsu
Based in Tokyo, Japan, Fujitsu is one of the global leaders in information and communications
systems. It offers a range of information and communications technology (ICT) products and
value-added services, including cloud computing-based solutions. Along with back-office
systems to support customer management, accounting, and other administrative functions,
Fujitsu maintains the leading share of the Japanese market for networking systems used to
support stable electric energy distribution.
Recently, Fujitsu has been strengthening its smart meter chipset and application product lines
while attempting to enter the Southeast Asia markets. For example, the company aims to
provide chipsets to smart grid trial projects in Thailand.
4.1.12
GE Energy
Atlanta-based GE Energy, a division of the American technology and service conglomerate,
deals in every aspect of the worlds energy, from natural resource mining to purveying
renewable energy. Much of its focus lately has been on energy delivery and its connection to a
smart grid. GE Energy gives utilities the ability to implement a fully functioning smart grid
solution by integrating distributed generation, optimizing network design, enabling remote
monitoring, and improving asset utilization. The company supplies utilities with both power
generation and energy delivery technologies. This includes generation switchyards, as well as
transmission, distribution, and utilization (i.e., light bulbs) applications. Of note, the company is
seeking smart grid standards so as to ensure cyber security, interoperability, reliability, and
safety.
Beyond that, GE Energy offers asset management solutions (including the GE PowerOn Outage
Management System), grid management, sensor and control solutions, and network equipment
like power transformers and voltage regulators. GE Energy also provides smart meters. For
example, it is providing 1 million smart meters, as well as 500 smart dashboards and 50 smart
appliances, to Miami, Florida.
4.1.13
Hitachi, Ltd.
Tokyo-based Hitachi has been operating community energy management systems (CEMS, or
microgrids) for connecting power plants and alternative energy sources with communities. The
company is now also collaborating with Panasonic, linking with its R&D strengths in smart grid
technologies.
Hitachi has a strong global presence in the smart grid space. It is participating in the
Singapore-Tianjin Eco City Project, a planned community outside of Tianjin in China. The
company is also actively participating in the U.S. smart grid demonstration project, New Mexico
Green Grid Project, which is led by Japans New Energy and Industrial Technology
Development Organization. The company has been examining the coordination of grid
equipment installation, lead batteries, power conditioning systems (PCSs), etc.
48
This comprehensive business operation highlighted above is exceptional among market players
from not only Japan, but also the entire Asia Pacific region. Recently, Hitachi strengthened its
T&D facilities business in Southeast Asia. In February 2012, Hitachi teamed up with Silver
Spring Networks for technology leadership related to the smart grid. The partnership should
help both parties expand their smart grid footprint, not only smart meters but also home energy
management devices, smart meter networks, rooftop solar panel inverters, energy storage
systems, and distribution grid sensors.
4.1.14
Honeywell
Honeywell of Morristown, New Jersey is a recent entrant into the DR market. However, the
company launched its renewables integration efforts with a microgrid offering in 2010 when it
was awarded a cost-plus-fixed-fee $4.6 million contract to develop mobile microgrids for the
U.S. Army Tank Automotive Research Development Engineering Center. These systems can
integrate distributed solar photovoltaic (PV), as well as legacy onsite fossil generation. One
such microgrid has been deployed at Wheeler Air Force Base (AFB), Hawaii and has reduced
onsite fossil fuel consumption by a factor of eight.
Along with reducing fossil fuel use from legacy diesel generators by networking and optimizing
operations, Honeywells microgrid also taps onsite solar PV: 50 kW from a parking lot and
another 25 kW from a mobile solar PV trailer. Perhaps one of the most noteworthy aspects of
this system is the integration of electric vehicle-to-grid charging into the microgrid, utilizing the
batteries of SUVs as storage. Rapid Electric Vehicles, Inc. (REV) of Vancouver, British
Columbia provided three of its EVs in this demonstration project. Through its wireless analytics
and software, REV is able to deploy bi-directional commands to the vehicle batteries to provide
ancillary services to the microgrid.
Honeywells most forward-looking pilot program for renewables integration is a project
announced in February 2012. Working with Hawaiian Electric Co. of Honolulu, this R&D project
is designed to put Honeywell on the map for trendsetting DR innovation. The 2-year research
effort is designed to help integrate intermittent variable renewables into the power grid through
the design of new tariffs based on technical performance criteria. By aggregating and
dispatching 6 MW of demand reductions at existing industrial and commercial sites (such as
municipal water facilities and agricultural pumps) within a 10-minute timeframe, this new fast
DR technology is specifically designed to address the major impacts that the high penetration of
solar and wind have had on the Big Island.
While DR cannot respond within the seconds necessary for frequency regulation ancillary
services, it can address the rather rapid ramp downs of wind and solar generators. On physical
islands such as Hawaii, high winds are a major challenge, as they can trip wind turbines offline,
which then requires the utility to tap spinning reserves to address frequency issues. Fast DR is
an alternative to reliance upon dirty diesel generation. Honeywell is also moving forward with a
similar test in Scotland, where a similar automated DR product is designed to relieve nodal
congestion and delay more expensive upgrades to the distribution grid.
49
4.1.15
Johnson Controls (EnergyConnect)

Milwaukee-based Johnson Controls acquired EnergyConnect in 2011. The acquisition
integrated the large commercial, industrial, and institutional demand response client base of
EnergyConnect with the substantial building energy management business unit of Johnson
Controls. Virtually all of EnergyConnects business to date has been through the PJM
interconnection in the eastern United States. EnergyConnect regards its automation software
solutions as its competitive advantage.
4.1.16
Mitsubishi Group
Tokyo-based Mitsubishi has long been engaged in business with customers around the world in
many industries, including energy, metals, machinery, and chemicals. Mitsubishi Corp. is one
of Japan's largest general trading companies with more than 200 bases of operations in
approximately 80 countries worldwide. In Japan, Mitsubishi Corp., Mitsubishi Motors, and
Mitsubishi Electric will collaborate on a smart grid research project. This project will
incorporate electric vehicle-to-X (e.g., home, factory, etc.) technology being undertaken by
Japans New Energy and Industrial Technology Development Organization (NEDO). In the
smart grid space, Mitsubishi has been testing:
Demand-supply balancing: technologies and algorithms to manage a large amount of

renewable energy connected to the power grid
Distribution network management: technologies and equipment for voltage control to

prevent instability caused by a large number of intermittent PV systems installed in
buildings and residences
Specific operation: technologies for independent microgrids for areas such as islands or
partially connected regions
Mitsubishi Electric operates electric and electronic equipment used in energy and electric
systems, industrial automation, information and communication systems, electronic devices,
and home appliances. More specifically, Mitsubishi Electric produces turbine generators,
hydraulic turbine generators, nuclear power plant equipment, motors, transformers, power
electronics equipment, and circuit breakers for power utilities.
4.1.17
NOJA Power
NOJA Power is a leading provider of low- and medium-voltage switchgear assemblies and
recloser products for industry, infrastructure, and electricity distribution utilities. Its
headquarters are in Brisbane, Queensland, Australia, and its recloser products are in service
today in more than 70 countries worldwide. The medium-voltage switchgear division
specializes in medium-voltage autoreclosers for both pole-mounted and substation applications
from 10 kV to 38 kV.
The low-voltage switchgear division specializes in the design and manufacture of high-quality
low-voltage motor control centers and low-voltage switchgear assemblies. These products are
offered in voltage ranges from 415V up to 1,000V; current ratings up to 4,000A continuous
50
current and 100 kA fault current withstand capacity. NOJA also provides a range of 19-inch
rack mount protection, metering, and RTU panels used in high-voltage substations, electricity
generation, and water pump station applications.
NOJA supplies recloser switches and controllers worldwide. They feature bi-directional
overcurrent protection, metering information, autonomous FDIR algorithms, and DNP3.0 and
generic object oriented substation event (GOOSE) messaging.
4.1.18
Osaki Electric
Tokyo-based Osaki Electric provides watt-hour meters, AMR, AMI, current limiters, time
switches, demand control equipment, centralized automatic meter reading systems, distributionline centralized load control equipment, fiber optical couplers, and optical communication
devices. Its business partnerships in the metering business include almost all of the Japanese
power utility companies, such as Tokyo Electric Power Company, Kansai Electric Power
Company, and Hokkaido Electric Power. To better react to the competitive meter market in
Japan, Osaki is reforming its business structure to develop smart meters, total AMI solutions,
and energy management systems.
Osaki recently unfolded a new business, Demand Management Service. This business
provides Japanese customers with services related to customer energy consumption patterns,
improvement plans for effective utilization of machines and equipment, and energy
procurement. Osaki has also been maintaining close partnerships with Japanese power utility
companies to collaborate on R&D projects for AMR. Moreover, the company has a number of
provision relationships.
In 2007, Osaki bought a 51% share of Enegate (Kansai Electric Power Companys affiliate
company), which produces electric meters. Additionally, Osaki is the current market champion
in Japan, accounting for approximately 39% market share in Japan. The company is
aggressively expanding its market control.
4.1.19
S&C Electric Company

S&C Electric Company, based in Chicago, is a 100-year-old global provider of equipment and
services for electric power systems. It maintains the largest market share of switching and
protection products for electric power transmission and distribution. S&Cs popular IntelliTEAM
Automatic Restoration System, first introduced in 2003, uses distributed intelligence and peerto-peer communications (usually wireless) to switch and isolate a faulted line section and
restore power to unfaulted line sections. Historically, this system has leveraged mesh
networking solutions from vendors such as Landis+Gyr (its UtiliNet radios). However, S&C
recently launched its own IP-based RF mesh radio system, SpeedNet, to meet the bandwidth
and latency requirements of new generations of its IntelliTEAM system.
S&C recently began providing grid optimization services under a performance contracting
model. S&C expects considerable long-term growth from renewables and EV integration.
51
4.1.20
Schneider Electric
Schneider Electric is based in the Paris, France area and operates worldwide. The company
offers products and technologies across a number of broad business segments: power
management, process and machines management, IT/server room management, building
management, and security management. Electrical distribution accounted for the majority of
Schneiders revenue. Its sales to China are now about equal to its sales to the United States.
Schneider has an extensive portfolio of network technologies and solutions, including
switchgear, protection relays, reclosers, transformers, and capacitors, in addition to AREVA
T&Ds overhead networks, underground cable networks, and distribution management.
Particularly in Europe but also to a large extent in North America, Schneider is a major power in
distribution systems.
4.1.21
Schweitzer Engineering Laboratories

Founded in 1982, Pullman, Washington-based Schweitzer Engineering Laboratories (SEL)
creates products and solutions for the protection of electric power systems. It counts
thousands of utilities among its customers. SELs move to the smart grid has proven seamless,
as the technologies it uses including protection, communications, sensing, monitoring,
security, and control are all vital to the smart grid. In fact, the company believes it has been
manufacturing smart grid products for the past 25 years, since it shipped the industrys first alldigital protective relay. SEL already provides its clients with transformer protection, recloser
controls, fault indicators, distributed intelligence, and smart metering solutions. The company
can now capitalize on that experience like never before.
4.1.22
Shenzhen Clou Electronics Co., Ltd.

Established in 1996 in Shenzhen, China, Shenzhen Clou Electronics is one of the leading
power grid equipment manufacturers in China. With over 800 research engineers, its products
and solutions include electric metering (prepaid, AMR, and AMI), meter test benches and
calibrators, automation of electric systems, power supply, reactive power and harmonic
compensation, frequency inverters, and new energy services. The company exports metering
solutions to more than 60 countries, including India, Kenya, Nepal, Italy, Brazil, Australia, and
Thailand.
4.1.23
Siemens Energy
Siemens Energy is a division of Siemens AG, the largest engineering conglomerate in Europe.
Siemens Energy, based in Raleigh, North Carolina, has a suite of products that enable utilities
to increase power system capacity and the operability of power delivery and network control
systems. The company offers services and solutions for the entire energy spectrum to help
maximize grid efficiency. Of note, Siemens provides utilities with a distribution management
system that includes Spectrum Power SCADA and Spectrum Power DNA products, ranging from
high- and medium-voltage equipment to web-based engineering software.
52
Siemens Industry acquired San Mateo, California-based MDM company eMeter in December of
2011. The firm already has an established international presence with its MDM product,
EnergyIP, and is now part of the Smart Grid Division of the Siemens Infrastructure Group.
4.1.24
Toshiba
Based in Tokyo, Japan, Toshiba acquired smart meter supplier Landis+Gyr for $2.3 billion in
May 2011. This enabled Toshiba to become an instant leader in the smart metering and smart
grid space. In Japan, Toshiba has been participating in comprehensive smart grid and solar
power generation projects. The company will investigate the efficiency of the transmission,
distribution, and substation systems in the power grid, the technologies used in smart meters,
and multiple solar panel options.
Toshibas foothold in the smart grid space is diverse. The company is involved with research
and products related to PV, single crystal and polycrystalline solar panels, power conditioners,
EVs, and rechargeable batteries for home usage (super-charge ion battery). In addition,
developing CHAdeMO-compliant EV chargers for the home is one of Toshibas key smart grid
projects.
The company is also actively participating in NEDOs New Mexico Green Grid Project, the U.S.
smart grid demonstration project. Toshiba has been examining grid energy management
systems, forecasts for demand and PV power generation, dynamic pricing for the smart grid,
and other issues and technologies. Also of note, Toshiba has established its own technological
framework for smart grid through transmission, distribution, and smart metering solutions, as
well as applications covering HAN, switch gears, PV, and demand response.
4.1.25
Yokogawa Electric
Yokogawa Electric, headquartered in Tokyo, Japan and founded in 1915, is a vendor of building
automation controls and devices and their associated solutions. Overall, Yokogawa is in the
process of transforming from a vendor of hardware to a provider of complete solutions that
cover industrial automation control, information systems, and testing and measurement. By
leveraging its product line and providing a complete range of services, Yokogawa aims to
provide real-time management of operations and energy.
Yokogawa is a leading vendor of submeters in Japan. Its PR300 Power and Energy Meter
offers a range of metering capabilities from basic kWh energy measurement to in-depth power
quality characteristics. In addition, Yokogawa manufactures a range of clamp-on split-core
current transformers. Yokogawa provides data management software to tie its submeters to its
broader industrial automation and operations solution.
53
4.2
Electric Utilities
4.2.1
North America
Table 4.1
Electric Utilities, North America
Company
American Electric
Power
Austin Energy
Headquarters
Revenue
($ Millions)
Employees
Columbus, OH
$14,776
18,710
Austin, TX
$11
Avista
Spokane, WA
BC Hydro
CenterPoint
Energy
City of Glendale
Public Utilities
Consumers
Energy
Dominion Virginia
Power
Duke Energy
Hydro One
National Grid
USA
Oncor
Pacific Gas &
Electric
PECO
Portland General
Electric
Salt River Project
San Diego Gas &
Electric
Southern
California Edison
Southern
Company
Tennessee Valley
Authority
Texas New
Mexico Power
Western
Electricity
Coordinating
Council
Xcel Energy
Anticipated SG
Customers
Company
Type
3,226,000
Public
50
280,000
Municipal
$16
65
13,000
IOU
Vancouver, BC
$4,571
5,875
N/A
Public
Houston, TX
$7,459
8,827
2,000,000
Pubic
Glendale, CA
N/A
N/A
84,000
Municipal
$5,970
7,435
1,800,000
IOU
Richmond, VA
N/A
N/A
N/A
IOU
Charlotte, NC
$170,003
18,249
N/A
Public
Toronto, ON
$5,652
5,781
1,200,000
Public
London, UK
$13,605
25,645
15,000
Public
Dallas, TX
San Francisco,
CA
Philadelphia, PA
$3,295
3,700
3,000,000
IOU
$15,019
19,253
5,300,000
IOU
$3,174
2,418
N/A
IOU
Portland, OR
$1,821
2,634
N/A
Public
N/A
N/A
N/A
Government
Institution
San Diego, CA
$3,674
5,008
1,400,000
IOU
Rosemead, CA
$11,308
18,069
5,300,000
IOU
Atlanta, GA
$16,530
26,377
N/A
Public
Knoxville, TN
$11,200
N/A
N/A
Government
Institution
Lewisville, TX
$245
342
240,000
IOU
Salt Lake City,

UT
$70
180
N/A
IOU
$2,551
11,942
3,407,000
IOU
Jackson, MI
Tempe, AZ
Minneapolis, MN
54
4.2.2
Europe
Table 4.2
Electric Utilities, Europe
Company
Headquarters
Reading, United
Kingdom
Fredericia,
Denmark
Paris, France
British Gas
DONG Energy
EDF
Endesa
Madrid, Spain
Enel Group
Rome, Italy
Dusseldorf,
Germany
Bilbao, Spain
E. ON AG
Iberdrola
Scottish and Southern
Energy
Statnett
Revenue
(/$ Millions)
Employees
Anticipated SG
Customers
Company
Type
14,464
6,625
2,000,000
Public
70,003
7,000
N/A
Private
68,065
151,804
35,000,000
Public
32,474
23,087
13,000,000
Public
83,008
74,877
32,000,000
Public
1,552,000
Public
10,000,000
Public
129,440
33,515
73,133
30,823
Maidenhead,
United Kingdom
1,774
5,895
N/A
Private
Oslo, Norway
5,273
911
N/A
Private
1,525
1,985
N/A
Private
$26,488
33,071
1,200,000
Public
Arnhem,
Netherlands
Stockholm,
Sweden
TenneT
Vattenfall
4.2.3
Asia Pacific
Table 4.3
Electric Utilities, Asia Pacific
Company
China Southern Power
Grid
Citipower/Powercor
Australia
Kansai Electric Power
Co.
Korea Electric Power
Company (KEPCO)
Manila Electric
Company
Power Grid Corp of
India Ltd
(POWERGRID)
PT Perusahaan Listrik
Negara (PT PLN)
Singapore Energy
Market Authority
State Grid Corporation
of China
Tenaga Nasional
Berhad
Anticipated SG
Customers
Company
Type
N/A
Private
2,800,000
Private
32,961
330,000
Public
$39,100
39,000
19,200,000
Public
$6,935
6,071
N/A
Public
Gurgaon, India
$1,919
9,670
N/A
Public
Jakarta,
Indonesia
$2,227
N/A
Public
Singapore
N/A
N/A
N/A
Private
Beijing, China
$185,239
N/A
N/A
Private
Kuala Lumpur,
Malaysia
$11,787
33,500
N/A
Public
Headquarters
Guangzhou,
China
Melbourne,
Australia
Osaka, Japan
Seoul,
South Korea
Pasig,
Philippines
Revenue
($ Millions)
Employees
$8,912
330,000
$420
233
$31,112
1,910
55
4.3
AMI Vendors
Table 4.4
AMI Vendors, World Markets
Company
Headquarters
Aclara
Hazelwood, MO
Ansbach,
Germany
Diehl Metering
Echelon
San Jose, CA
Elster Group
Essen, Germany
Revenue
($ Millions)
Employees
$26
313
$3,943
13,974
$151
302
$1,849
6,985
Ember (bought by
Silicon Labs)
Boston, MA
$6
44
Holley Metering
Hangzhou,
China
$24
1,700
Kranj, Slovenia
$96
902
$2,297
9,600
Iskraemeco
Itron
Liberty Lake, WA
Landis+Gyr
Zug, Switzerland
$1,590
5,000
LSIS
Anyang-si, Korea
$1,291
3,200
Ningbo Sanxing
Electric
Ningbo City,
Zhejiang, China
Yroju-Gun,
South Korea
Hangzhou,
Zhejiang, China
Seoul, South
Korea
Winchester,
United Kingdom
N/A
N/A
$58
150
N/A
N/A
$25
87
$64
128
865
3,477
Omni System
Pax Electricity
PS Tec
Secure Meters
Sensus
Raleigh, NC
Industry Focus
Communications
technology
Meters,
communications, billing
PLC sensing,
monitoring, controls
Meters,
communications,
networking, software
Wireless mesh sensing
software
Meters
Meters,
communications
Meters, data
management software,
communications
Meters, MDM,
communications,
software
Power grid hardware,
including smart meters
Smart meters and
mechanical meters
Automatic metering
reading
Company
Type
Private
Private
Public
Public
Private
Private
Private
Public
Acquired by
Toshiba during
2012
Public
Private
Public
Meter, prepaid
Private
Meters
Meter, energy
management
Utility infrastructure,
metering systems
Public
Private
Private
4.4
Networking and Software & Systems Vendors
Table 4.5
Networking and Software & Systems Vendors, World Markets
Company
Headquarters
Revenue
($ Millions)
Employees
Industry Focus
Company
Type
Airspan
Boca Raton, FL
$55
207
WiMAX products
Public
Ambient
Newton, MA
$51
88
Public
Lawrence, MA
N/A
N/A
$805
1,962
$127,434
241,810
Secure communications
PLC and wireless
communications
Owns and operates
data networks
Wireless and wired
Amperion
Arqiva
AT&T
Winchester,
United Kingdom
Dallas, TX
Private
Private
Public
56
Company
Headquarters
Revenue
($ Millions)
Employees
BPL Global
Sewickey, PA
N/A
N/A
Munich,
Germany
$902
340
San Jose, CA
$46,681
66,639
Bonn, Germany
$78,575
232,926
Minnetonka, MN
Petach Tikva,
Isral
$191
643
$643
3,000
FreeWave
Technologies
Boulder, CO
N/A
N/A
GarrettCom
Fremont, CA
$10
N/A
GlobalStar
Covington, LA
$75
239
Green Hills
Software
Santa Barbara,
CA
San Francisco,
CA
$24
185
N/A
N/A
Cinterion
Cisco Systems
Deutsche
Telecom
Digi International
ECI Telecom
Grid Net, Inc.

Infosat
Communications
LP
Calgary, Canada
N/A
Inmarsat
London,
United Kingdom
$1,406
568
Jasper Wireless
Sunnyvale, CA
N/A
N/A
Motorola
Solutions, Inc.
Schaumberg, IL
$8,698
21,000
Nokia Siemens
Networks
Espoo, Finland
N/A
6,958
Seoul, South
Korea
$58
123
San Diego, CA
N/A
N/A
Mannheim,
Germany
N/A
N/A
$19,121
26,600
$112
364
Nuri Telecom
On-Ramp
Wireless
Power Plus
Communications
Qualcomm
RuggedCom
San Diego, CA
Concord,
Canada
101
Industry Focus
networking
Communications
network and
management systems
Cellular M2M
communication
modules
IP Networking,
switches, storage
products
Communication
infrastructure and
networks
M2M networking
Networking
infrastructure
Wireless data radio
solutions
industrial networking
products
Satellite based
networking and
communication
products
Real time operating
system solutions
M2M networking
operating systems
commercial and
industrial
communication
networks
Mobile satellite
communications
M2M platforms and
networks
Communication
infrastructure, devices,
software and services
Mobile, fixed and
converged networks
IT Management,
automated meter
reading, sensor network
solutions
Wireless
communication for
sensor, metering and
asset data tracking
Broadband power line
communication systems
Wireless data
communications
Communications
networking for remote
Company
Type
Private
Private
Public
Public
Public
Private
Private
Private
Public
Private
Private
Private
Public
Private
Private
Private
Public
Private
Private
Public
Private
57
Company
Headquarters
Saab Grintek
Sagemcom
SES Broadband
Revenue
($ Millions)
Employees
$160
1,525
$278
715
$1,082
145
Cenurion, South
Africa
RueilMalmaison,
France
Betzdorf,
Luxembourg
Industry Focus
areas
Communication and
spectrum management
Broadband
communications and
convergence equipment
Satellite based
communications
Two-way
communications
networking
IP enabled devices.
Acquired by Itron in
May 2012
Mobile radio
communications
products
Wireless cellular and
mesh equipment,
DA, dual radio, mesh
routers, point-to-point
and point-to-multipoint,
and WiMAX radios
Broadband
communication
networks
Communications
networks to
approximately 407
million customers
Company
Type
Private
Private
Private
Silver Spring
Networks
Redwood City,
CA
$208
570
SmartSynch
Jackson, MS
N/A
108
Tait
Communications
Christchurch,
New Zealand
N/A
N/A
Trilliant
Redwood City,
CA
$24
250
Tropos Networks
(ABB)
Sunnyvale, CA
N/A
N/A
Verizon
New York, NY
$115,846
184,500
Newbury,
United Kingdom
$70,402
86,373
N/A
N/A
PLC Communications
Private
N/A
Semantic-based
integration and
information
management solutions
Private
Vodafone
Xeline
Seoul. South
Korea
Xtensible
Solutions
Greenwood
Village, CO
N/A
Private
Private
Private
Private
Private
Public
Public
4.5
Applications and Services
Table 4.6
Applications and Services, World Markets

Revenue
($ Millions)
Employees
Redwood City,
CA
N/A
N/A
Calico Energy
Bellevue, WA
N/A
N/A
Comverge
Norcross, GA
$150
511
Company
Headquarters
C3 Energy
Industry Focus
SaaS platform, analytic
capabilities using billing
data and other info
Head-end/load control
Intelligent energy
for utilities, industrial/
commercial customers
Company
Type
Private
Private
Private
58
Company
Headquarters
Revenue
($ Millions)
Employees
DataRaker
Sausalito, CA
N/A
N/A
DNV KEMA
Arnhem,
Netherlands
$32
255
Redwood City,
CA
N/A
N/A
Bloomington, MN
N/A
N/A
ElectSolve
Shreveport, LA
N/A
N/A
eMeter
Foster City, CA
$18
130
EnergyICT
Kortrijk, Belgium
$23
50
EnerNex
Knoxville, TN
N/A
N/A
EnerNOC
Boston, MA
$262
660
Antwerp,
Belgium
$39
100
First Carbon
Solutions
Glendale, CA
N/A
N/A
GridGlo
Delray Beach,
FL
N/A
N/A
Doncaster,
Australia
$59
267
$41,960
170,000
Seoul,
South Korea
N/A
N/A
Boston, MA
N/A
N/A
Lake Saint Louis,

MO
$93
1,225
EcoFactor
Ecologic Analytics
Ferranti Computer
Systems
Hansen
Technologies
Johnson Controls
(Energy Connect)
KDN
Martin Dawes
Analytics
National
Information
Systems
Cooperative
Milwaukee, WI
Industry Focus
Analytic data platforms
for utilities and
customers
Technical and
management consulting
for the electric industry
Energy management
for heating, ventilation,
and air conditioning
MDM systems for
electric, natural gas,
and water utilities
Data management,
technical and consulting
services
EnergyIP provides
information and process
automation
Center MDM platform
Electric power
research, engineering,
and consulting
Energy management
applications, devices
and products
Management, design
and IT consulting
services
Environmental
management
outsourcing solutions
Software platforms for
predictive energy
consumption behavior
Development,
integration and support
of billing systems
Building management
systems, controls,
services, operations,
and consulting
Advanced power IT
systems
Company
Type
Acquired by
Oracle
Private
Private
Private
Private
Acquired by
Siemens
Owned by
Elster Group
Private
Public
Private
Private
Private
Public
Public
Private
Data analytic software
Private
Accounting, billing, and

other system support
for utilities
Private
59
Company
Netcracker
Technology
(Formerly
Convergys)
Headquarters
Revenue
($ Millions)
Employees
Waltham, MA
$123
1,000
North|Star Utilities
Ottawa, Ontario
N/A
N/A
Olivine
San Ramon, CA
N/A
N/A
Opower
Arlington, VA
N/A
200
Oracle
Redwood City,
CA
$37,230
115,000
OSIsoft
San Leandro, CA
$78
700
Alpharetta, GA
N/A
N/A
Trondheim,
Norway
$49
239
Sarasota, FL
N/A
N/A
Proximetry
San Diego, CA
N/A
N/A
Qualcomm
Atheros
San Jose, CA
$958
1,778
$16,222
64,422
PayGo Electric
Powel
Prepaid Energy
Solutions (PES)
SAP
Walldork,
Germany
SCADASoft
Weldon Spring,
MO
N/A
N/A
Survalent
Technology
Mississauga, ON
N/A
N/A
Telvent
Madrid, Spain
$990
6,163
Tendril
Boulder, CO
N/A
N/A
Teradata
Dayton, OH
$2,598
8,600
Industry Focus
Telecom operations
including charging and
billing solutions
Integrated solutions for
billing, customer
information, MDM and
back-office financials
Software platform for
deployment of retail
programs
Customer engagement
platform
Database management
software
Enterprise infrastructure
for management of realtime series data
Meter firmware and
communications
software
Software and services
for Nordic utilities
Payment transaction
provider
Wireless network and
provider
WLAN, GPS, Bluetooth,
Thernet, PLC,
broadband multiplexing
Enterprise application
Communications
diagnostics tools and
protocols for SCADA
systems
Management systems
for enabling
visualization,
optimization, and
operations for utilities
Distribution
management, outage
management, and
SCADA applications
Cloud-based platform
for variety of in-home
home management
applications
Data warehousing and
enterprise analytics
company
Company
Type
Private
Private
Private
Private
Public
Private
Private
Private
Private
Private
Private
Public
Private
Private
Private
Private
Public
60
Company
Headquarters
Revenue
($ Millions)
Employees
Utility Integration
Solutions (UISOL)
Lafayette, CA
N/A
N/A
Ventyx
Atlanta, GA
$122
650
Wasion
Hong Kong
$346
3,282
Industry Focus
Technology strategy,
systems integration,
and process redesign
Asset management,
energy operations,
workforce management
Metering products and
energy management
solutions
Company
Type
Private
Owned by
ABB
Public
4.6
Systems Integrators
Table 4.7
Systems Integrators, World Markets
Company
Headquarters
Revenue
($ Millions)
Employees
Accenture
Dublin, Ireland
$28,007
259,000
Atos
Bezons, France
$11,803
75,329
Paris, France
$13,682
121,026
Falls Church, VA
$15,689
98,000
Palo Alto, CA
$120,357
331,800
HCL
Technologies
Noida, India
$4,379
85,194
IBM
Armonk, NY
$104,507
440,885
Bengaluru, India
$7,236
155,629
Bethesda, MD
$47,182
123,000
Reading,
United Kingdom
$5,986
41,720
Capgemini
CSC
Hewlett-Packard
Infosys
Lockheed Martin
Logica
Industry Focus
Global management
consulting, technology
services, and
outsourcing
Full integration from
smart meters to
business applications
Systems integration
and outsourcing
Business process
outsourcing,
applications
management, IT
infrastructure,
professional services
Smart grid consulting
services: readiness
assessments,
roadmaps,
implementation
IT and business
consulting, application
services, infrastructure
Consulting services for
utilities
Billing and CIS system
replacement, AMI/MDM
enablement
Project management
and consulting for
utilities and government
Systems integration,
outsourcing and meter
management
Company
Type
Public
Public
Public
Public
Public
Public
Public
Public
Public
Private
61
Company
Headquarters
Revenue
($ Millions)
Employees
PwC
New York, NY
N/A
38,935
$11,023
41,100
Smart grid-as-a-service
(SGS) provider to midtier utilities
Public
130,000
Systems integration of
smart metering
applications: AMI MDM,
CIS, backend
applications and data
analytics
Public
Science
Applications
International
Corp.
McLean, VA
Wipro
Bangalore, India
$7,832
Industry Focus
Asset management,
analytics, technology
implementation, data
modeling
Company
Type
Private
4.7
Cyber Security Vendors
Table 4.8
Cyber Security Vendors, World Markets
Company
Headquarters
Revenue
($ Millions)
Employees
3eTI
Rockville, MD
$26
95
ABB/Tropos
Sunnyvale, CA
N/A
N/A
Agiliance
Sunnyvale, CA
N/A
N/A
Governance, risk and

compliance solutions
Private
AlertEnterprise
Fremont, CA
N/A
N/A
Governance and
regulatory compliance
solutions
Private
AlienVault
Campbell, CA
N/A
N/A
Network security and

software
Private
ArcSight
(Hewlett-Packard)
Cupertino, CA
$195
526
Security information
and event management
Private
Asguard Networks
Seattle, WA
N/A
N/A
Lantzville, BC
N/A
N/A
Mississauga,
Ontario, Canada
N/A
N/A
Core Trace
Austin, TX
N/A
N/A
EnergySec
Clackamas, OR
N/A
N/A
Scotts Valley,
CA
N/A
N/A
Byres Security
(Tofino)
Certicom
ICS Cybersecurity
Inc.
Industry Focus
Secure wireless
networking systems
Private wireless
network vendor
Protection of legacy
networks
Industrial network and
SCADA security
Embedded encryption
and digital certificates
Whitelisting application
for SCADA and other
systems
Non-profit exchange
focused on smart grid,
industrial control, and
cyber security threats
Security professional
services firm
Company
Type
Private
Private
Private
Private
Owned by
Research in
Motion
Private
Private
Private
62
Revenue
($ Millions)
Employees
Foxborough, MA
$13
95
St. Petersburg,
FL
$0.2
InGuardians
Washington, DC
N/A
N/A
Innominate
Berlin, Germany
N/A
N/A
McAfee (including
Nitro Security)
Santa Clara, CA
$2,065
6,300
Mocana
San Francisco,
CA
N/A
N/A
N-Dimension
Richmond Hill,
ON
N/A
N/A
Bedford, MA
$340
1,282
Orkoien, Spain
$7
73
Dell SecureWorks
Atlanta, GA
$35
745
Managed security
service provider
Private
SecurityMatters
Enschede,
Netherlands
N/A
N/A
Control system
intrusion detection
Private
Sophos/Utimaco
Abingdon,
United Kingdom
$282
1,473
Columbia, MD
$281
560
$9
55
security
Private
$6,839
20,500
Global security vendor
Public
Rosh Haayin,
Israel
N/A
N/A
Industrial network
security
Private
Vancouver,
British Columbia
N/A
N/A
Consulting and
vulnerability testing
Private
Company
Headquarters
Industrial
Defender
Infrax Systems
RSA
S21sec
Sourcefire
SUBNET
Solutions Inc.
Symantec
Waterfall Security
Wurldtech
Calgary, AB
Mountain View,
CA
Industry Focus
Integrated change
management, cyber
security, and compliant
solutions for Internet
connection sharing
Secure network
communications
modules
Independent security
consulting agency
Control network
security systems
Leading cyber security
vendor
Enterprise and OEM
device security
Control and operation
systems security
Wide ranging security
profile including security
event management and
key management
Information and control
system security
Manufacturer of
hardware security
modules
Intrusion prevention
software
Company
Type
Private
Public
Private
Private
Private
Private
Private
Private
Private
Private
Public
63
4.8
Industry Associations
Table 4.9
Industry Associations, World Markets
Company
Headquarters
Member Base
Industry Focus
Company
Type
CEN
Brussels,
Belgium
33 countries
European standards and

technical specifications
Nonprofit
CENELEC
Brussels,
Belgium
34 countries
Electrotechnical
standardization
Nonprofit
Washington,
D.C.
95% of shareholderowned utilities
Advocate for members on

regulatory outcomes
Nonprofit
Electric Power
Research Institute
(EPRI)
Palo Alto, CA
90% of electricity
generation in the
United States, 40
countries worldwide
R&D relating to generation,

delivery, and use
Nonprofit
ESNA
Amersfoort,
Netherlands
Utilities worldwide
Promoting open standards
Nonprofit
ETSI
Sophia Antipolis,
France
EU member states
and many other
associate member
countries
Standardizations in
telecom
Nonprofit
Homeplug
Alliance
San Ramon, CA
N/A
Industry alliance to promote

home power line products
and networks
Private
Z-Wave Alliance
Milpitas, CA
N/A
N/A
ZigBee Alliance
San Ramon, CA
N/A
N/A
Edison Electric
Institute (EEI)
HEM
communications
standards
Develops
standards and
offers
certification for
wireless
solutions
64
Section 5
MARKET FORECASTS
5.1
Introduction
Pike Research forecasts that the annual global smart grid technology market revenue will
increase from $33 billion in 2012 to $73 billion by the end of 2020, a compound annual growth
rate (CAGR) of 10.3%. Pike Research forecasts total revenue during the forecast period at
$494 billion. That CAGR is a nice growth rate for a market that is already quite large. The
global smart grid technology market is extremely wide in scope and therefore gives rise to
numbers as large as those just discussed.
Transmission aspects of smart grid are difficult to segregate because in many economies
transmission networks are being built for the first time. One example is Chinas aggressive
expansion of HVDC networks to move energy from sources such as the Three Gorges Dam to
urban load centers. It is legitimate to argue that not all components of such HVDC projects are
truly smart grid; for example, rights-of-way must be obtained and towers constructed no matter
how the cables will be managed, smartly or otherwise. Still, it is often impossible to segregate
land and construction costs from other costs especially in less transparent economies so
the forecasts include all expenses for transmission. It is equally logical to claim that those
expenses would not be incurred were smart grids not being constructed.
Other aspects of smart grid, such as distribution and substations, are easier to segregate.
Within other reports, Pike Research presents more detailed information on typical sizes and
componentry of substations, distribution grids, and smart metering networks as a basis for a
cost estimate of each type of substation.
5.2
Market Assumptions
There are no valid broad-brush market assumptions for smart grid. As described throughout
this report, especially in Section 2, each application has its own drivers, which vary from one
region to another. For instance, North America has built out most of its transmission and
distribution networks, so the existing and planned projects are more likely to be driven by
efficiency upgrades or renewables integration. Meanwhile, other economies may simply be
building out infrastructure to reduce energy poverty or non-technical losses.
Even within a single region the drivers may differ. For example, smart metering shows a
different face in different parts of Europe. Great Britain, France, and Spain are in the early
stages of truly gargantuan AMI deployments that will stress test the capabilities of their
vendors. Meanwhile northern Europe is home to a large number of smaller utilities that are
likely to undertake small and well-defined AMI rollouts, perhaps reliant upon AMI as a managed
service. Lastly, Italys smart meter rollout was completed almost a decade ago.
The myriad of business drivers per region and per application are taken into account in each of
the forecasts. The following section lists source reports for many of the forecasts presented
65
here; those source reports contain more detail of the business drivers for each technology and
each region. In general, Pike Research observes that more developed economies justify smart
grid investment based on improved energy efficiency, better customer engagement, and
improved profitability for utilities. This includes reducing energy consumption peaks, integrating
renewable power, and meeting government clean energy mandates. Meanwhile, developing
economies appear to be more focused on giving their citizens better access to energy, reducing
energy theft, and creating reliable networks. However, developing economies are likely to be
pursuing clean energy goals as well.
5.3
Forecasting Methodology
The forecasts included in this report are all taken from other Pike Research reports that present
deeper dives into each application. The objective here is to present an overview of smart grid
market investment through 2020. The source reports for the forecasts used herein, all
published by Pike Research, are:
Substation Automation, published 3Q 2012
Distribution Automation, due to be published 2Q 2013
Smart Grid Information Technology, published 2Q 2012
Smart Meters, published 2Q 2012
The forecasts for high-voltage transmission were merged from a number of previous reports,
including High-Voltage Direct Current Transmission (published 2Q 2012), Smart Grid
Renewables Integration (published 2Q 2012), and Pike Researchs biannual Smart Grid
Deployment Tracker.
This section, therefore, is a high-level summary of forecasts that Pike Research has previously
published, just as each topic discussed in the report can also be examined more deeply through
the purchase of other more detailed reports. However, no other report has the breadth of this
one, either in topics covered or markets forecast. Each of the reports mentioned above as input
for the forecasts is suitable for a deeper dive into one particular area of the smart grid.
5.4
Smart Grid Technologies Global Forecast

This section presents global smart grid revenue forecasts by application type: transmission
upgrades, substation automation, distribution automation, IT/OT software, and smart metering.
These breakouts are presented because vendors are likely to be selling the same products in
multiple regions, rather than selling all possible products in a single region.
The report presents three views of global smart grid revenues: annual revenues, cumulative
revenues, and year-on-year percentage change in revenues. In each case, the forecast period
is 2012-2020.
66
5.4.1
Global Revenue Forecast by Application

Chart 5.1 shows smart grid technology revenue through the rest of this decade. While the trend
is not a non-stop increase (there is a dip in revenue mid-decade), it is positive.
Transmission upgrades are the leading driver of these forecasts. As explained above, new
transmission projects include a number of components that are not in themselves smart but
without which the smart grid deployments would be impossible. Whether a transmission project
serves to upgrade an existing grid or to create a transmission network where none had existed
previously, the components enable deployment of smart grid technologies.
Following transmission upgrades, the next most significant driver of revenue is distribution
automation, growing from $4.5 billion to $11.3 billion during the forecast period, a CAGR of
12.1%. This growth reflects Pike Researchs observation that many utilities are now focused on
upgrading their distribution networks as a means of improving reliability while enabling demand
response and other dynamic energy reduction programs.
Smart metering, for all its hype, remains in the range of $5.5 billion in revenue per year during
the forecast period, an anemic CAGR of 0.3%. This forecast reflects continued activity in
Europe and Asia while North American deployments decrease. Smart metering will decrease
from 15% of all smart grid technology revenue to 7% of revenue by 2020.
Chart 5.1
Smart Grid Technology Revenue by Application, World Markets: 2012-2020

$80,000
IT/OT Software
Smart Meters and AMI
$70,000
($ Millions)
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$2012
2013
2014
2015
2016
2017
2018
2019
2020
67
5.4.2
Cumulative Forecast
Chart 5.2 shows the same numbers as the preceding chart but in a cumulative manner in order
to show the size of the aggregate market each year. This presentation more clearly shows the
lead that transmission upgrades have when it comes to total smart grid revenue. The relatively
low revenue for substation automation is due in part to the notion that many distribution
automation projects include substation components that Pike Researchs reports classify as
distribution revenue rather than substation revenue. The gradual increase in IT/OT
demonstrates an increasing significance of automation software and hardware throughout the
decade as more IT-enabled technologies are deployed to improve efficiency and reduce
expense.
Pike Research does forecast telecommunications revenue in a separate report, Smart Grid
Networking and Communications (published 1Q 2012), but that revenue is already included in
each of the applications discussed here, so adding a separate item for communication would
double-state its revenue.
Chart 5.2
Smart Grid Technology Cumulative Revenue by Application, World Markets: 2012-2020

$600,000
($ Millions)
$500,000
IT/OT Software
$400,000
$300,000
$200,000
$100,000
$2012
2013
2014
2015
2016
2017
2018
2019
2020
5.4.3
Year-on-Year Change in Smart Grid Technology Investment

Chart 5.3, which shows year-on-year change in revenue for each smart grid application, is
interesting for its diversity. The data for smart metering and substation automation start out
near 0% and hover there throughout the period. That forecasts markets that are not destined to
grow substantially but are not forecast to shrink either. Still, those markets remain healthy
enough for investment and are by no means saturated yet. Meanwhile, transmission and
68
distribution have growth reminiscent of some of the early-stage industries that Pike Research
covers: large initial annual change eventually dropping to reasonable values, although
transmission upgrades look like a rollercoaster ride from year to year. This indicates the
necessity to understand the regions in which business will be pursued. IT/OT software is
somewhere in between those two extremes with a relatively healthy year-on-year growth early
on, decreasing over time but never by too much.
All of this data taken together illustrates the diversity of markets and the risk of taking a onesize-fits-all approach in building a smart grid product portfolio. Growth is not steady from
region to region or from year to year. Business forecasts should be granular enough to
withstand the good with the bad; for example, wait out 2016-2017 in transmission for the
rebound forecast in 2018. None of these markets are for the faint of heart, and even the
strongest willed players still require realistic planning to survive the troughs so that later peaks
can be enjoyed.
Chart 5.3
Smart Grid Technology Year-on-Year Revenue Change by Application, World Markets:

2012-2020
70%
IT/OT Software
60%
(% Change)
50%
40%
30%
20%
10%
0%
-10%
-20%
2013
2014
2015
2016
2017
2018
2019
2020
69
5.5
Smart Grid Technologies Regional Forecasts

The remaining charts in this section present revenue by application for each of the five global
regions: North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
5.5.1
Smart Grid Technologies Revenue Forecast: North America

The forecast for North America shows a peak in the middle of the decade with a drop off
followed by reasonably stable revenues for the rest of the decade. Even so, revenues never
drop below $15 billion per year after 2014. Nearly all of the variance is attributable to changes
in transmission upgrade revenue, as the other four applications remain relatively stable
throughout the forecast period; except for transmission, the other applications have single-digit
CAGRs. The drop in transmission revenues after 2016 is largely attributable to a decrease in
the number of planned or forecast HVDC projects, itself due to a significant decrease in
planned HVDC lines during that period. Several factors could increase HVDC planning
including increased use of renewable energy, which often calls for HVDC transmission and
almost exclusively requires HVDC if the generation is offshore.
Chart 5.4
Smart Grid Technology Revenue by Application, North America: 2012-2020

IT/OT Software
$25,000
($ Millions)
$20,000
$15,000
$10,000
$5,000
$2012
2013
2014
2015
2016
2017
2018
2019
2020
70
5.5.2
Smart Grid Technologies Revenue Forecast: Europe

European smart grid revenues are far less dependent upon transmission than other regions,
especially after 2014. Likewise, there is not such a pronounced drop-off later in the decade as
seen for North America, although it bears noting that the revenue values on Chart 5.5 are about
half those of the North American chart. This is due, in part, to the great deal of transmission
work that has already been done in Europe. Also, European distribution grids are designed
differently than North American grids; they tend to have more management at substations and
fewer feeder circuits. The relatively fewer feeder circuits implies a lower number of distribution
automation projects necessary, since upgrading substations will accomplish much of the
desired result. Smart metering remains an important component of smart grid revenue
throughout the decade as large initiatives proceed in Great Britain, France, and Spain.
Chart 5.5
Smart Grid Technology Revenue by Application, Europe: 2012-2020

IT/OT Software
$12,000
($ Millions)
$10,000
$8,000
$6,000
$4,000
$2,000
$2012
2013
2014
2015
2016
2017
2018
2019
2020
71
5.5.3
Smart Grid Technologies Revenue Forecast: Asia Pacific

Transmission upgrades drive much of the revenue in Asia Pacific. Just as China nears
completion of is HV transmission build-out, India has begun its own. China is already well into
its distribution grid build-out, deploying smart meters at an almost dizzying pace. Meanwhile,
India is likely to begin its distribution grid build-out in earnest in the middle of the decade and
remain ongoing for the remainder of the forecast period. In the case of Asia Pacific, smart grid
technology revenues double from $15 billion to $30 billion during the forecast period, a CAGR
of 9%. In comparison to global numbers, that is a healthy CAGR for such large absolute
volumes. Other populous countries such as Indonesia appear likely to aggressively pursue
smart metering and the related distribution and transmission upgrades during the forecast
period. Meralco in the Philippines has already kicked off its nationwide smart meter
deployment.
Chart 5.6
Smart Grid Technology Revenue by Application, Asia Pacific: 2012-2020

$35,000
IT/OT Software
$30,000
($ Millions)
$25,000
$20,000
$15,000
$10,000
$5,000
$2012
2013
2014
2015
2016
2017
2018
2019
2020
72
5.5.4
Smart Grid Technologies Revenue Forecast: Latin America

Latin America is the smallest market forecast in this report. Much of the activity will occur in
Brazil, although Chile and Mexico also have ambitious smart metering programs. The large
component of transmission revenue is mainly due to four large countries Brazil, Argentina,
Chile, and Mexico that have needs to transmit power over great distances to their load
centers (cities).
Chart 5.7
Smart Grid Technology Revenue by Application, Latin America: 2012-2020

$6,000
IT/OT Software
($ Millions)
$5,000
$4,000
$3,000
$2,000
$1,000
$2012
2013
2014
2015
2016
2017
2018
2019
2020
73
5.5.5
Smart Grid Technologies Revenue Forecast: Middle East & Africa

This region remains an enigma; it has a population exceeding 1 billion but little apparent
potential for smart grid technology markets. Other Pike Research reports have indicated a
significant potential for renewable energy and distributed generation in Africa, suggesting that
large infrastructure build-out may never occur. When Celtel originally built its mobile telephony
infrastructure in sub-Saharan Africa (now owned by Bharti and branded as Airtel), Celtel
indicated that it had to develop its own power infrastructure before it could even think of
building a wireless infrastructure. Much of the transmission revenue forecast in Chart 5.8 is
likely to result from the Mediterranean supergrid interconnect between Europe and North Africa,
plus an extremely long Saharan Wind project in Morocco.
Chart 5.8
Smart Grid Technology Revenue by Application, Middle East & Africa: 2012-2020
$14,000
IT/OT Software
$12,000
($ Millions)
$10,000
$8,000
$6,000
$4,000
$2,000
$2012
2013
2014
2015
2016
2017
2018
2019
2020
74
Section 6
COMPANY DIRECTORY
3eTI
9715 Key West Avenue, Suite 500
Rockville, MD 20850, United States
www.ultra-3eti.com
+1.301.670.6779
Alcatel-Lucent
3 av. Octave Grard
75007 Paris, France
www.alcatel-lucent.com
+33.1.40.76.10.10
ABB
Affolternstrasse 44
PO Box 8131
CH-8050 Zurich, Switzerland
www.abb.com
+41.43.317.7111
AlertEnterprise
4350 Starboard Drive
Fremont, CA 94538, United States
www.alertenterprise.com
+1.510.440.0840
Accenture
161 North Clark Street
Chicago, IL 60601, United States
www.accenture.com
+1.877.889.9009
Aclara
945 Hornet Drive
Hazelwood, MO 63042, United States
www.aclaratech.com
+1.800.297.2728
Agiliance
9715 Key West Avenue, Suite 500
Rockville, MD 20850, United States
www.ultra-3eti.com
+1.301.670.6779
Airspan Networks
777 Yamato Road, Suite 310
Boca Raton, FL 33431, United States
www.airspan.com
+1.561.893.8670
AlienVault
1875 South Grant Street, Suite 110
San Mateo, CA 94402, United States
www.alienvault.com
+1.650.453.2350
Alstom Grid
3 Avenue Andr Malraux
Levallois-Perret, France
www.alstom.com
+33.1.45.30.85.75
Ambient Corporation
7 Wells Avenue, Suite 11
Newton, MA 02459, United States
www.ambientcorp.com
+1.617.332.0004
American Electric Power
1 Riverside Plaza
Columbus, OH 43215, United States
www.aep.com
+1.614.716.1000
75
American Superconductor
64 Jackson Road
Devens, MA 01434, United States
www.amsc.com
+1.978.842.3000
Amperion
360 Merrimack Street
Riverwalk, Building 9
Lawrence, MA 01843, United States
www.amperion.com
+1.978.569.2000
ArcSight (HP)
3000 Hanover Street
Palo Alto, CA 94304, United States
www.hp.com
+1.650.857.1501
Arqiva
Crawley Court
Winchester SO21 2QA, United Kingdom
www.arqiva.com
+44.1962.823434
Asguard Networks
6312 30 th Avenue NW
Seattle, WA 98107, United States
www.asguardnetworks.com
+1.425.213.4691
AT&T
208 South Akard Street
Dallas, TX 75202, United States
www.att.com
+1.210.821.4105
Atos
4 Triton Square, Regent's Place
London NW1 3HG
United Kingdom
www.atos.net
+44.207.830.4444
Austin Energy
721 Barton Springs Road #316
Austin, TX 78704, United States
www.austinenergy.com
+1.512.672.0770
Avista Utilities
1411 East Mission Avenue
Spokane, WA 99252, United States
www.avistautilities.com
+1.509.495.8090
BC Hydro
6911 Southpoint Drive
Burnaby, BC V3N 4X8
www.bchydro.com
+1.800.224.9376
BPL Global
500 Cranberry Woods Drive, Suite 170
Cranberry Township, PA 16066, United States
www.bplglobal.net
+1.724.933.7700
British Gas
Millstream
Maidenhead Road
Windsor, Berkshire SL4 5GD
United Kingdom
www.britishgas.co.uk
+44.1753.494000
76
Byres Security (Tofino)

PO Box 178
#2-7217 Lantzville Road
Lantzville, BC Canada V0R 2H0
www.tofinosecurity.com
1.250.390.1333
Certicom (RIM)
5520 Explorer Drive
Mississauga, ON L4W 5L1, Canada
www.certicom.com
+1.905.507.4220
C3 Energy
1300 Seaport Bouldevard, Suite 500
Redwood City, CA 94063, United States
www.c3energy.com
+1.650.503.2200
China Southern Power Grid

No. 6 Huasui Road
ZhujiangXincheng, Tianhe District
Guangzhou, P.R. China 510623
eng.csg.cn
+86.20.38121080
Calico Energy
777 108th Avenue NE, Suite 2150
Bellevue, WA 98004, United States
www.calicoenergy.com
+1.425.440.0201
Cinterion (Gemalto)
St.-Martin-Strae 60
Munich, 81541 Germany
www.gemalto.com/m2m
+49.89.21029.9000
Capgemini
623 Fifth Avenue, 33 rd Floor
New York, NY 10022, United States
www.us.capgemini.com
+1.212.314.8000
Cisco Systems
170 West Tasman Drive
San Jose, CA 95134, United States
www.cisco.com
+1.408.526.4000
CEN
Avenue Marnix 17
B-1000 Brussels, Belgium
www.cen.eu
+32.2.550.08.11
Citipower/Powercor Australia
40 Market Street
Melbourne Victoria Australia
www.citipower.com.au
www.powercor.com.au
+03.9683.4444
CENELEC
17, Avenue Marnix
B-1000 Brussels
www.cenelec.eu
+32.2.519.68 71
CenterPoint Energy
1111 Louisiana Street
Houston, TX 77002, United States
www.centerpointenergy.com
+1.713.207.1111
Glendale Water and Power

141 N. Glendale Avenue
Glendale, CA 91206, United States
www.glendalewaterandpower.com
818-548-3300
Comverge
5390 Triangle Parkway, Suite 300
Norcross, GA 30029, United States
www.comverge.com
+1.888.565.5525
77
Consumers Energy
One Energy Plaza
Jackson, MI 49201, United States
www.consumersenergy.com
+1.800.477.5050
Deutsche Telekom
Friedrich-Ebert-Allee 140
Bonn, Germany 53113
www.telekom.com
+49.228.181.13301
Cooper Power Systems

2300 Badger Drive
Waukesha, WI 53188, United States
www.cooperindustries.com
+1.877.277.4636
Diehl Metering
Hydrometer GmbH
Industriestrae 13
D-91522 Ansbach
www.diehl.com
+49.981.1806.0
Core Trace
6500 River Place Boulevard
Building II, Suite 105
www.coretrace.com
+1.512.592.4100
Digi International
11001 Bren Road East
Minnetonka, MN 55343, United States
www.digi.com
+1.952.912.3444
CSC
3170 Fairview Park Drive
Falls Church, VA 22042, United States
www.csc.com
+1.703.876.1000
DNV KEMA
Utrechtseweg 310
6812 AR Arnhem, Netherlands
www.kema.com
+31.26.356.91.11
Current Group
20420 Century Boulevard
Germantown, MD 20874, United States
www.currentgrid.com
+1.301.944.2700
Dominion Virginia Power

One James River Plaza (OJRP)
701 East Cary Street
Richmond, VA 23219, United States
www.dom.com
+1.804.771.4795
Daiichi Electronics
11-13, Hitotsuya 1-chome
Adachi-ku, Tokyo 121-8639 Japan
www.daiichi-ele.co.jp
+81.3.3885.2411
DataRaker
3020 Bridgeway Street, Suite 284
Sausalito, CA 94965, United States
www.dataraker.com
+1.877.328.3907
DONG Energy
Kraftvaerksvej 53, 7000 Fredericia
Skaerbaek, Denmark 6780
www.dongenergy.com
+45.99.551111
Duke Energy
550 South Tryon Street
Charlotte, NC 28202, United States
www.duke-energy.com
+1.704.594.6200
78
E.ON AG
E.ON-Platz 1
40479 Dsseldorf, Germany
www.eon.com
+49.211.4579.0
ElectSolve
14101 Highway 290, Suite 1400-B
www.electsolve.com
+1.512.858.0748
Eaton
1111 Superior Avenue
Cleveland, OH 44114, United States
www.eaton.com
+1.216.523.5000
Electricite de France
22/30 avenue de Wagram 75008
Paris, France
www.edf.com
+33.1.40.42.46.37
Echelon
550 Meridian Avenue
www.echelon.com
+1.408.938.5200
Edison Electric Institute

701 Pennsylvania Avenue, N.W.
Washington, D.C. 20004, United States
www.eei.org
+1.202.508.5000
ECI Telecom
30 Hasivim Street
Petach Tikvah, 4951169 Israel
www.ecitele.com
+972.3.926.6555
Electric Power Research Institute

3420 Hillview Avenue
www.epri.com
+1.650.855.2000
EcoFactor
1775 Woodside Road, Suite 100
www.ecofactor.com
+1.650.716.4760
Elster Group
Frankenstrasse 362
Essen 45133, Germany
www.elster.com
+49.201.5458.0
Ecologic Analytics
1650 West 82nd Street, Suite 1100
Bloomington, MN 55431, United States
www.ecologicanalytics.com
+1.952.977.7500
Ember (bought by Silicon Labs)

25 Thomson Place 2 nd Floor
Boston, MA 02210, United States
www.ember.com
+1.617.951.0200
EFACEC ACS
2755 Northwoods Parkway
Norcross, GA 30071, United States
www.efacec-acs.com
+1.770.446.8854
eMeter
2215 Bridgepointe Parkway Suite 300
San Mateo, CA 94404, United States
www.emeter.com
+1.650.227.7770
79
Endesa
Calle De La Ribera Del Loira, 60
Comunidad de Madrid 28042, Spain
www.endesa.com
+34.912131102
ESNA
Printerweg 3
3821 AP Amersfoort, Netherlands
www.esna.org
+31.6.53225382
Enel Group
Viale Regina Margherita, 137
Rome, Italy 00198
www.enel.com
+39.68.3051
ETSI
650, Route des Lucioles
06921 Sophia-Antipolis Cedex, France
www.etsi.org
+33.4.92.94.42.00
EnergyICT
Stasegemsesteenweg 112
8500 Kortrijk
Belgium
+32.56.245.690
www.energyict.com
Ferranti Computer Systems

Noorderlaan 139
B-2030 Antwerpen
Belgium
www.ferranti.be
+32.3.540.49.11
EnergySec
8440 SE Sunnybrook Boulevard, Suite 206
Clackamas, OR 97015, United States
www.energysec.org
+1.877.267.4732
FirstCarbon Solutions
220 Commerce Street, Suite 200
Irvine, CA 92602, United States
www.firstcarbonsolutions.com
+1.714.508.4100
EnerNex
620 Mabry Hood Road, Suite 300
Knoxville, TN 37932, United States
www.enernex.com
+1.865.218.4600
FreeWave Technologies
1880 South Flatiron Court, Suite F
Boulder, CO 80301, United States
www.freewave.com
+1.303.381.9200
EnerNOC
101 Federal Street, Suite 1100
Boston, MA 02110, United States
www.enernoc.com
+1.617.224.9900
Fujitsu
Shiodome City Center
1-5-2 Higashi-Shimbashi, Minato-ku
Tokyo 105-7123, Japan
www.fujitsu.com
+81.3.6252.2220
Ericsson
Orshamnsgatan 23, Kista
164 83 Stockholm, Sweden
www.ericsson.com
+46.10.719.00.00
GarrettCom
47823 Westinghouse Drive
Fremont, CA 94539, United States
www.garrettcom.com
+1.510.438.9071
80
GE Energy
2018 Powers Ferry Road
Atlanta, GA 30339, United States
www.gedigitalenergy.com
+1.877.605.6777
Hewlett-Packard
3000 Hanover Street
www.hp.com
+1.650.857.1501
Globalstar
300 Holiday Square Boulevard
Conington, LA 70433, United States
www.globalstar.com
+1.985.335.1500
Hitachi, Ltd.
Marunouchi 1-6-1
Chiyoda-ku, Tokyo 101-8220, Japan
www.hitachi.com
+81.03.3258.1111
Green Hills Software

30 West Sola Street
Santa Barbara, CA 93101, United States
www.ghs.com
+1.805.965.6044
Holley Metering
No. 181 Wuchang Avenue, Yuhang District
Hangzhou 310023, China
www.holleymeter.com
+86.571.89300666
Grid Net, Inc.

340 Brannan Street, Suite 501
San Francisco, CA 94107, United States
www.grid-net.com
+1.415.442.4623
HomePlug Alliance
8305 SW Creekside Place, Suite C
Beaverton, Oregon 97008, United States
www.homeplug.org
+1.503.766.2516
GridGlo
777 E. Atlantic Avenue, Suite 100
Delray Beach, FL 33483, United States
www.gridglo.com
+1.561.265.1523
Honeywell
101 Columbia Road
Morristown, NJ 07962, United States
www.honeywell.com
+1.973.455.2000
Hansen Technologies
2 Frederick Street
Doncaster Victoria 3108
Australia
www.hsntech.com
+61.3.9840.3000
Hydro One
483 Bay Street
North Tower, 15 th Floor Reception
Toronto, Ontario M5G 2P5, Canada
www.hydroone.com
+1.877.955.1155
HCL Technologies
A-10/11, Sector - 3
Noida - 201 301, Uttar Pradesh, India
www.hcltech.com
+91.120.253.5071
Iberdrola
Calle Toms Redondo, nmero 1. 28033
Madrid, Spain
www.iberdrola.es
+44.871.384.2936
81
IBM
1 New Orchard Road
Armonk, NY 10504, United States
www.ibm.com
+1.800.426.4968
Inmarsat
99 City Road
London EC1Y 1AX
www.inmarsat.com
+44.20.7728.1000
ICS CyberSecurity, Inc.

1753 Glenwood Drive
Scotts Valley, CA 95066, United States
www.icscybersecurity.com
+1.408.656.8732
Innominate Security Technologies A.G.

Rudower Chaussee 13
12489 Berlin, Germany
www.innominate.com
+49.30.921028.0
Industrial Defender
16 Chestnut Street, Suite 300
Foxborough, MA 02035, United States
www.industrialdefender.com
+1.508.718.6700
Iskraemeco
Savska loka 4
4000 Kranj, Slovenia
www.iskraemeco.si
+386.4.206.4000
Infosat Communications LP
3130-114 Avenue, SE
Calgary, AB, Canada T2Z 3V6
www.infosat.com
+1.403.543.8188
Itron
2111 North Molter Road
Liberty Lake, WA 99019, United States
www.itron.com
+1.509.924.9900
Infosys
Electronics City, Hosur Road
Bangalore 560 100
www.infosys.com
+91.80.2852.0261
Jasper Wireless
189 North Bernardo Avenue, Suite 150
Mountain View, CA 94043, United States
www.jasperwireless.com
+1.650.810.8000
Infrax Systems
3637 4 th Street North
St. Petersburg, FL 33704, United States
www.infraxinc.com
+1.727.498.8514
Johnson Controls
5757 North Green Bay Avenue
Milwaukee, WI 53201, United States
www.johnsoncontrols.com
+1.414.524.1200
InGuardians
5614 Connecticut Avenue NW #313
Washington, D.C., 20015, United States
www.inguardians.com
+1.202.448.8958
Kansai Electric Power Co.

6-16 Nakanoshima 3-chome, Kita-ku
Osaka 530-8270, Japan
www.kepco.co.jp
+81.6.6441.8821
82
KDN
60, 72Gil, Hyoryeong-Ro,
Seocho-gu, Seoul 137-862, Korea
www.kdn.com
+82.2.6262.6753
Landis+Gyr
Thielerstrasse 1, CH-6300
Zug, Switzerland
www.landisgyr.com
+41.41.935.6500
Lockheed Martin
6304 Spine Road
www.lockheedmartin.com
+1.303.581.4200
Logica
250 Brook Drive
Green Park
Reading, RG2 6UA, United Kingdom
www.logica.com
+44.20.7637.9111
LSIS
LS Tower
127, LS-ro, Dongan-gu, Anyang-si,
Gyeonggi-Do, 431-848, Korea
www.lsis.biz
+82.2.2034.4324
Manila Electric Company (Meralco)
Lopez Building
Ortigas Avenue, Pasig City 1600
Philippines
www.meralco.com
+63.2.635.5901
Martin Dawes Analytics

Martin Dawes House
Europa Boulevard
Westbrook, Warrington WA5 7WH
United Kingdom
www.martindawes.com
+44.844.826.5000
McAfee (including NitroSecurity)
3965 Freedom Circle
Santa Clara, CA 95054, United States
www.mcafee.com
+1.888.847.8766
Mistubishi Group
Mitsubishi Denki Building
2-7-3 Marunochi 2-chome, Chiyoda-ku
Tokyo, 100-8310, Japan
www.mitsubishi-motors.com
+81.3.3218.2111
Mocana
350 Sansome Street, Suite 1010
www.mocana.com
+1.415.617.0055
Motorola Solutions, Inc.
1303 East Algonquin Road
Schaumburg, IL 60196, United States
www.motorola.com
+1.847.576.5000
National Grid USA
25 Research Grid
Westborough, MA 01582, United States
www.nationalgrid.com
+1.508.389.2000
83
National Information Systems Cooperative

One Innovation Circle
Lake Saint Louis, MO 63367, United States
www.nisc.coop
+1.866.999.6472
N-Dimension Solutions Inc.
9030 Leslie Street, Unit 300, Richmond Hill
Ontario, Canada L4B 1G2
www.n-dimension.com
+1.905.707.8884
NetCracker Technology
95 Sawyer Road
Waltham, MA 02453, United States
www.netcracker.com
+1.781.419.3300
Ningbo Sanxing Electric
No. 1166, Mingguang North Road
Jiangshan Town, Ningbo, China
www.sanxing.net.cn
+86.574.88072108
NOJA Power
16 Archimedes Place, Murarrie
Brisbane Queensland, Australia 4172
www.nojapower.com.au
+61.7.3907.8777
Nuri Telecom
NURI Building, 750-14
Bangbae-dong, Seocho-gu
Seoul, Korea
www.nuritelecom.co.kr/eng
+82.2.781.0741
Osaki Electric
2-10-2 Higashi-Gotanda
Shinagawa-ku,Tokyo 141-8646, Japan
www.osaki.co.jp
+81.88.833.0171
Olivine
2010 Crow Canyon Place, Suite 100
San Ramon, CA 94583, United States
www.olivineinc.com
+1.888.717.3331
Omni System
Gyeonggi province,Yeoju county, Ganam,
Samseung-ri 413-14 469882 Korea
www.omnisystem.co.kr
+82.31.883.5400
Oncor
1616 Woodall Rodgers Highway, Suite 6C-006
Dallas, TX 75202, United States
www.oncor.com
+1.888.313.6862
Nokia Siemens Networks

FI-02022 Nokia Siemens Networks
Karaportti 3
02610 Espoo, Finland
www.nokiasiemensnetworks.com
+358.71.400.4000
On-Ramp Wireless
10920 Via Frontera #200
San Diego, CA 92127, United States
www.onrampwireless.com
+1.858.592.6008
North|Star Utilities
1 Antared Drive, Suite 400
Ottawa ON, K2E 8C4, Canada
www.northstarutilities.com
+1.613.226.5511
Opower
1515 N. Courthouse Rd., 8 th Floor
Arlington, VA 22201, United States
www.opower.com
+1.703.778.4544
84
Oracle
500 Oracle Parkway
Redwood Shores, CA 94065, United States
www.oracle.com
+1.650.506.7000
Powel AS
Klbuveien 194 NO-7037
Trondheim, Norway
www.powel.com
+47.73.80.45.01
OSIsoft
777 Davis Street
San Leandro, CA 94577, United States
www.osisoft.com
+1.510.297.5800
Power Grid Corporation of India Limited

B-9, Qutab Institutional Area, Katwaria Sarai
New Delhi, Delhi 110016 India
www.powergridindia.com
+91.124.2571700
Pacific Gas & Electric

One Market, Spear Tower
www.pge.com
+1.415.267.7000
Power Plus Communications

Am Exerzierplatz 2
68167 Mannheim, Germany
www.ppc-ag.de
+49.621/40165.100
Pax Electricity
Floor 4~6, Block B, Huahong Mansion,
No.248, Tianmushan Road,
Hangzhou, P.R. China. 310018
www.paxhz.com
+86.571.86717911
Prepaid Energy Solutions

ACH Payment Solutions, Inc.
6919 Treymore Court
Sarasota, FL 34243, United States
www.prepaidenergysolutions.com
+1.941.360.8859
PayGo Electric
333 North Point Center East, Suite 250
Alpharetta, GA 30022, United States
www.paygoelectric.com
+1.678.325.6511
Pricewaterhouse Coopers (PwC)

300 Madison Avenue, 24 th Floor
New York, New York 10017, United States
www.pwc.com
+1.646.471.4000
PECO
2301 Market Street
PO Box 8699
Philadelphia, PA 19101, United States
www.peco.com
+1.800.494.4000
Proximetry
909 W. Laurel Street, Suite 200
www.proximetry.com
+1.619.704.0020
Portland General Electric

121 SW Salmon Street
Portland, OR 97204, United States
www.portlandgeneral.com
+1.503.464.8000
PS Tec
5th Floor, Poong Sung Building, 656-1693,
Sungsu1ga, Sungdong-Gu, Seoul
www.pstec.co.kr
+82.2.3408.1700
85
PT Perusahaan Listrik Negara (PT PLN)

Jalan Trunojoyo Blok M 1/135
Kebayoran Baru
Jakarta, Indonesia
www.pln.co.id
+62.21.7251234
Saab Grintek
50 Oak Avenue
Highveld Techno Park (West Park Entr)
Centurion
www.saabgrintek.com
+27.12.672.8633
Qualcomm
5775 Morehouse Drive
www.qualcomm.com
+1.858.587.1121
Sagemcom
250 route de l'Empereur
92848 Rueil-Malmaison Cedex, France
www.sagemcom.com
+33.1.57.61.10.00
Qualcomm Atheros
1700 Technology Drive
www.qca.qualcomm.com
+1.408.773.5200
Salt River Project

1521 N. Project Drive
Tempe, AZ 85281, United States
www.srpnet.com
+1.602.236.5900
RSA, the Security Division of EMC

174 Middlesex Turnpike
Bedford, MA 01730, United States
www.rsa.com
+1.781.515.5000
San Diego Gas & Electric

PO Box 129831
www.sdge.com
+1.619.696.2000
RuggedCom
300 Applewood Crescent
Concord, Ontario, Canada L4K 5C7
www.ruggedcom.com
+1.905.856.5288
SAP
Dietmar-Hopp-Allee 16
69190 Walldorf, Germany
www.sap.com
+49.6227.74.7474
S21sec
PE la Muga, 11-1
C.P. 31160 Orkoyen, Spain
S21sec.com
+34.902.222.521
SCADASoft
254 Cedar Forest Court
Weldon Spring, MO 63304, United States
www.scadasoftllc.com
+1.608.345.0104
S&C Electric
6601 North Ridge Boulevard
Chicago, IL 60626, United States
www.sandc.com
+1.773.338.1000
Schneider Electric
Schneider Electric
35, rue Joseph Monier
92500 Rueil Malmaison - France
www.schneider-electric.com
+33.1.41.29.70.00
86
Schweitzer Engineering Labs

2350 NE Hopkins Court
Pullman, WA 99163, United States
www.selinc.com
+1.509.332.1890
Science Applications International Corp.
1710 SAIC Drive
McLean, VA 22102, United States
www.saic.com
+1.703.676.4300
Scottish and Southern Energy
Inveralmond House
200 Dunkeld Road
Perth PH1 3AQ
www.sse.com
+44.1738.456.000
Secure Meters Ltd.
PO Box 30 E-Class
Pratap Nagar Industrial Area
India 313003
www.securetogether.com
+91.2942492300
SecureWorks (Dell)
One Concourse Parkway, Suite 500
www.secureworks.com
+1.877.838.7947
SecurityMatters
Mirastraat 93
7521 ZG, Enschede, Netherlands
www.securitymatters.eu
+31.53.489.3744
Sensus
8601 Six Forks Road, Suite 700
Raleigh, NC 27615, United States
www.sensus.com
+1.800.638.3748
SES Broadband
Chteau de Betzdorf
L-6815 Betzdorf
Luxembourg
www.ses.com
+352.710.725.1
Shnezhen Clou Electronic
5/F, Building T2, Hi-Tech Industrial Park South
Shenzhen, Guangdong, China 518057
www.szclou.com/en
+86.755.2655.1016
Siemens Energy
Freyeslebenstrasse 1
91058 Erlangen, Germany
www.energy.siemens.com
+49.180.524.70.00
Silver Spring Networks
555 Broadway Street
www.silverspringnet.com
+1.866.204.0200
Singapore Energy Market Authority
991G Alexandra Road
#01-29, Singapore 119975
www.ema.gov.sg
+65.6835.8000
SmartSynch
4400 Old Canton Road
Jackson, MS 39211, United States
www.smartsynch.com
+1.888.362.1780
Sophos/Utimaco
The Pentagon, Abingdon Science Park
Abingdon OX14 3YP, United Kingdom
www.sophos.com
+44.8447.671131
87
Sourcefire Inc.
9770 Patuxent Woods Drive
Columbia, MD 21046, United States
www.sourcefire.com
+1.410.290.1616
Symantec Corporation
350 Ellis Street
Mountain View, CA 94043, United States
www.symantec.com
+1.650.527.8000
Southern California Edison

PO Box 976
Rosemead, CA 91770, United States
www.sce.com
+1.877.379.9515
Tait Communications
558 Wairakei Road
Burnside, Christchurch, 8053
New Zealand
www.taitradio.com
+64.3.358.3399
Southern Company
30 Ivan Allen Jr. Boulevard NW
www.southerncompany.com
+1.404.506.5000
State Grid Corporation of China
No. 86, West Chang'an Street, Xicheng District
Beijing City, 100031
China
www.sgcc.com
+86.10.6659.8109
Statnett
Husebybakken 28 B, Oslo
PO Box 5192 Majorstuen
N-0302 Oslo, Norway
www.statnett.no
+47.23.90.30.00
SUBNET Solutions Inc.
4639 Manhattan Road SE
Calgary, AB T2G 4B3, Canada
www.subnet.com
+1.403.270.8885
Survalent Technology
2600 Argentia Road
Mississauga, Ontario, Canada L5N 5V4
www.survalent.com
+1.905.826.5000
Telvent
4701 Royal Vista Circle
Fort Collins, CO 80528, United States
www.telvent-gis.com
+1.970.223.1888
Tenaga Nasional Berhad
No. 129, JalanBangsar
59200 Kuala Lumpur, Malaysia
www.tnb.com.my
+60.3.2296.5566
Tendril
2560 55t h Street
www.tendrilinc.com
+1.720.921.2100
Tennessee Valley Authority
400 West Summit Hill Drive
Knoxville, TN 37902, United States
www.tva.gov
+1.865.632.2101
TenneT
Utrechtseweg 310
PO Box 718
6800 AS Arnhem, the Netherlands
www.tennet.eu
+31.26.373.11.11
88
Teradata
10000 Innovation Drive
Dayton, OH 45342, United States
www.teradata.com
+1.937.242.4030
Texas-New Mexico Power Company
577 N Garden Ridge Boulevard
Lewisville, TX 75067, United States
www.tnmp.com
+1.888.866.7456
Toshiba
1-1, Shibaura 1-chome, Minato-ku
www.toshiba.co.jp/worldwide
+81.3.3457.4511
Trilliant
1100 Island Drive
www.trilliantinc.com
+1.650.204.5050
Tropos Networks Inc.
555 Del Rey Avenue
Sunnyvale, CA 94085, United States
www.tropos.com
+1.408.331.6800
Utility Integration Solutions
24 Benthill Court
Lafayette, CA 94549, United States
www.uisol.com
+1.925.658.0023
Vattenfall
SE-162 87
Stockholm, Sweden
www.vattenfall.com
+46.8.739.50.00
Ventyx
193 Turbot Street
Brisbane, Queensland 4000
Australia
www.ventyx.com
+61.7.3303.3333
Verizon
1 Verizon Way
Basking Ridge, NJ 07902, United States
www.verizonwireless.com
+1.908.607.8000
Vodafone
The Connection
Newbury, Berkshire RG14 2FN, United Kingdom
www.vodafone.com
+44.1635.33251
Wasion Group
No. 468 West Tongzipo Road,
High-Tech Industrial Development Zone
Changsha City, Hunan Province, 410205, China
www.wasion.com
+86.731.8861.9682
Waterfall Security
16 Hamelacha Street, Afek Industrial Park
Rosh Haayin, 48091, Israel
www.waterfallsecurity.com
+972.3.9003700
Western Electricity Coordinating Council
155 North 400 West, Suite 200
Salt Lake City, UT 84103, United States
www.wecc.biz
+1.801.582.0353
89
Wipro
Doddakannelli,
Sarjapur Road
Bangalore 560 035
www.wipro.com
+91.80.2844.0011
Wurldtech Security Technologies Inc.
Suite 1000 - 1090 West Georgia Street
Vancouver, BC Canada V6E 3V7
www.wurldtech.com
+1.604.669.6674
Xcel Energy
414 Nicollet Mall
Minneapolis, MN 55401, United States
www.xcelenergy.com
+1.800.328.8226
XeLine
415 Hi-Tech Industry Center 1580 Sangam-dong,
Mapo-gu, Seoul, 121-835, Korea
www.xeline.com
+82.2.598.0980
Xtensible Solutions
6312 South Fiddlers Green Circle, Suite 210E
Greenwood Village, CO 80111, United States
xtensible.net
+1.720.240.0500
Yokogawa Electric
9-32, Nakacho 2-chome, Musashino-shi,
www.yokogawa.com
+81.422.52.5535
ZigBee Alliance
2400 Camino Ramon Suite 375
San Ramon, CA 94583
www.zigbee.org
+1.925.275.6604
Z-Wave Alliance
1778 McCarthy Boulevard
Milpitas, CA 95035, United States
www.z-wavealliance.org
+1.408.262.9003
Xemex NV
Metropoolstraat 11a
B2900 Schoten
Belgium
www.xemex.eu
+32.3.201.95.95
90
Section 7
ACRONYM AND ABBREVIATION LIST
Advanced Control Systems ...................................................................................................................... ACS
Advanced Metering Infrastructure Wide Area Network ....................................................................... AMI-WAN
Advanced Metering Infrastructure ............................................................................................................. AMI
Air Force Base ......................................................................................................................................... AFB
Alternating Current .................................................................................................................................... AC
American National Standards Institute .................................................................................................... ANSI
American Recovery and Reinvestment Act ............................................................................................. ARRA
Amp ............................................................................................................................................................ A
Automated Meter Reading ....................................................................................................................... AMR
Bits per Second ........................................................................................................................................ bps
Broadband over Power Line ...................................................................................................................... BPL
Bulk Electric System ............................................................................................................................... BES
Business Continuity Planning .................................................................................................................. BCP
Central Electricity Regulatory Commission (India)................................................................................... CERC
Commercial Off-The-Shelf ..................................................................................................................... COTS
Community Energy Management System ............................................................................................... CEMS
Compound Annual Growth Rate ............................................................................................................. CAGR
Conservation Voltage Regulation ............................................................................................................. CVR
Control Systems Security Program (Department of Homeland Security) ................................................... CSSP
Critical Infrastructure Protection (North American Electric Reliability Council) ............................................. CIP
Current Transformer ................................................................................................................................... CT
Demand Response .................................................................................................................................... DR
Department of Energy (United States) ...................................................................................................... DOE
91
Department of Homeland Security (United States) .................................................................................... DHS

Digital Signal Processing ......................................................................................................................... DSP
Digital Subscriber Line ............................................................................................................................. DSL
Distributed Energy Resources ................................................................................................................. DER
Distributed Generation .............................................................................................................................. DG
Distributed Network Protocol, Version 3 ................................................................................................. DNP3
Distribution Automation Wide Area Network ....................................................................................... DA-WAN
Distribution Automation ............................................................................................................................. DA
Distribution System Operator ................................................................................................................... DSO
Electric Vehicle .......................................................................................................................................... EV
Electricite de France ............................................................................................................................... EDF
Energy Independence and Security Act (United States) ........................................................................... EISA
Energy Service Company ...................................................................................................................... ESCO
European Committee for Electrotechnical Standardization ................................................................ CENELEC
European Union ........................................................................................................................................ EU
Fault Detection, Isolation, and Recovery ................................................................................................. FDIR
Fault Location, Isolation, and Service Restoration .................................................................................. FLISR
Federal Energy Regulatory Commission (United States) ......................................................................... FERC
Fixed Series Capacitors .......................................................................................................................... FSC
Flexible Alternating Current Transmission ............................................................................................ FACTS
Fourth Generation ...................................................................................................................................... 4G
General Electric ........................................................................................................................................ GE
General Packet Radio Service ............................................................................................................... GPRS
Generic Object Oriented Substation Event .......................................................................................... GOOSE
Geospatial Information System ................................................................................................................. GIS
92
Gigawatt .................................................................................................................................................. GW
Gigawatt-Hour ........................................................................................................................................ GWh
High-Voltage Alternating Current ........................................................................................................... HVAC
High-Voltage Direct Current ................................................................................................................... HVDC
High-Voltage ............................................................................................................................................. HV
Home Area Network ................................................................................................................................ HAN
Information and Communications Technology ............................................................................................. ICT
Information Technology ............................................................................................................................... IT
Institute of Electrical and Electronics Engineers ...................................................................................... IEEE
Intelligent Electronic Device ..................................................................................................................... IED
International Electrotechnical Commission ................................................................................................ IEC
International Organization for Standardization ........................................................................................... ISO
Internet Protocol ......................................................................................................................................... IP
Investor-Owned Utility .............................................................................................................................. IOU
Kilobits per Second ................................................................................................................................. kbps
Kilovolt ...................................................................................................................................................... kV
Kilowatt-Hour .......................................................................................................................................... kWh
Korea Electric Power Company ............................................................................................................ KEPCO
Load Tap Changer ................................................................................................................................... LTC
Local Area Network .................................................................................................................................. LAN
Long Term Evolution ................................................................................................................................ LTE
Machine-to-Machine ................................................................................................................................ M2M
Megabits per Second ............................................................................................................................. Mbps
Megahertz ............................................................................................................................................... Mhz
Megawatt ................................................................................................................................................. MW
93
Merger and Acquisition ............................................................................................................................ M&A

Meter Data Management ........................................................................................................................ MDM
Ministry of Economy, Trade and Industry (Japan) .................................................................................... METI
Multimedia Messaging Service ................................................................................................................ MMS
Narrowband Power Line ........................................................................................................................... NPL
National Energy Committee (China) ......................................................................................................... NEC
National Institute of Standards and Technology (United States) ............................................................... NIST
National Science and Technology Council (United States) ...................................................................... NTSC
Neighborhood Area Network .................................................................................................................... NAN
New Energy and Industrial Technology Development Organization (Japan) .............................................. NEDO
North American Electric Reliability Corporation....................................................................................... NERC
Operations Technology ............................................................................................................................. OT
Phasor Data Concentrator ....................................................................................................................... PDC
Phasor Monitoring Unit ............................................................................................................................ PMU
Photovoltaic ............................................................................................................................................... PV
Plug-in Hybrid Electric Vehicle ............................................................................................................... PHEV
Potential Transformer ................................................................................................................................. PT
Power Conditioning System ..................................................................................................................... PCS
Power Line Communications ..................................................................................................................... PLC
Public Utility Commission ........................................................................................................................ PUC
Radio Frequency ........................................................................................................................................ RF
Remote Terminal Unit ............................................................................................................................. RTU
Research and Development ..................................................................................................................... R&D
Role-Based Access Control ................................................................................................................... RBAC
Schweitzer Engineering Laboratories ........................................................................................................ SEL
94
Second Generation .................................................................................................................................... 2G

Series Capacitor ....................................................................................................................................... SC
Smart Grid Interoperability Panel (National Institute of Standards and Technology) ................................... SGIP
State Electricity Regulatory Commission (India)...................................................................................... SERC
State Grid Corporation of China ............................................................................................................. SGCC
Static Synchronous Compensators .................................................................................................. STATCOM
Static VAR Compensator ......................................................................................................................... SVC
Substation Automation Wide Area Network ......................................................................................... SA-WAN
Substation Automation ............................................................................................................................... SA
Supervisory Control and Data Acquisition ............................................................................................. SCADA
System Average Interruption Duration Index ........................................................................................... SAIDI
Third Generation ........................................................................................................................................ 3G
Thyristor-Controlled Series Capacitor..................................................................................................... TCSC
Thyristor Protected Series Capacitor ...................................................................................................... TPSC
Transmission and Distribution .................................................................................................................. T&D
Ultra-High Voltage .................................................................................................................................. UHV
United Kingdom ...................................................................................................................................... U.K.
United States .......................................................................................................................................... U.S.
Very Small Aperture Terminal ................................................................................................................ VSAT
Volt ............................................................................................................................................................. V
Volt-Ampere Reactive ............................................................................................................................. VAR
Volt-VAR Optimization ............................................................................................................................. VVO
Wide Area Monitoring System ............................................................................................................... WAMS
Wide Area Network ................................................................................................................................ WAN
Worldwide Interoperability for Microwave Access .................................................................................. WiMAX
95
Section 8
TABLE OF CONTENTS
Section 1 ........................................................................................................................................................... 1
Executive Summary .......................................................................................................................................... 1
1.1
Market Overview ................................................................................................................................. 1
1.2
Market and Trends .............................................................................................................................. 1
1.3
Market Forecast ................................................................................................................................. 2
1.4
Additional Reading ............................................................................................................................. 3
Section 2 ........................................................................................................................................................... 4
Market Issues .................................................................................................................................................... 4
2.1
Smart Grid Scope ............................................................................................................................... 4
2.2
The Case for a Smart Grid .................................................................................................................. 5
2.2.1
Improving Grid Reliability .............................................................................................................. 6
2.2.2
Increasing Grid Efficiency ............................................................................................................. 6
2.2.3
Increasing Grid Capacity ............................................................................................................... 7
2.2.4
Integrating Renewable-Source Energy ........................................................................................... 7
2.2.5
Operational Realities .................................................................................................................... 7
2.2.6
Engaging Customers ..................................................................................................................... 8
2.3
Market Inhibitors ................................................................................................................................. 8
2.3.1
Customer Acceptance ................................................................................................................... 8
2.3.2
Interoperability Standards ............................................................................................................. 9
2.3.2.1 Politics .................................................................................................................................... 9

2.3.3
2.4
Land Use and Eminent Domain .................................................................................................... 10
Technology Vendors .......................................................................................................................... 10
2.4.1
Vendor Types .............................................................................................................................. 10
96
2.4.2
Barriers to Entry .......................................................................................................................... 10
2.4.3
Industry Consolidation ................................................................................................................. 11
2.5
Regulatory Issues .............................................................................................................................. 12
2.5.1
United States .............................................................................................................................. 12
2.5.1.1 Federal ................................................................................................................................... 12

2.5.1.2 Individual States ..................................................................................................................... 13
2.5.2
Europe ........................................................................................................................................ 13
2.5.3
Asia Pacific ................................................................................................................................. 14
2.5.4
Latin America .............................................................................................................................. 15
2.5.5
Middle East and Africa ................................................................................................................. 15
2.6
Strategic Observations ....................................................................................................................... 16
2.6.1
T&D Enhancements Will be the Highest Priority Smart Grid Activities ............................................. 16
2.6.2
Smart Grid Data Analytics Hold Immense Potential for Optimization ............................................... 16
2.6.3
Large and Small Companies Can Play .......................................................................................... 17
2.6.4
Each Technology Can Support Multiple Winners ........................................................................... 17
Section 3 .......................................................................................................................................................... 18
Technology Issues ........................................................................................................................................... 18
3.1
Categorization of Smart Grid Technology ............................................................................................ 18
3.2
Transmission Upgrades ..................................................................................................................... 18
3.2.1
Direct Current Transmission ......................................................................................................... 19
3.2.2
Synchrophasors ........................................................................................................................... 20
3.2.3
Flexible Alternating Current Transmission Systems ....................................................................... 21
3.2.4
Dynamic Line Rating .................................................................................................................... 23
3.3
Substation Automation ....................................................................................................................... 23
3.3.1
Switchgear Circuit Breakers and Fuses ...................................................................................... 24
97
3.3.2
Transformers ............................................................................................................................... 24
3.3.3
Relay Technology ........................................................................................................................ 24
3.4
Distribution Automation ...................................................................................................................... 25
3.4.1
Volt-VAR Optimization ................................................................................................................. 26
3.4.2
Conservation Voltage Reduction ................................................................................................... 26
3.4.3
VAR Control ................................................................................................................................ 26
3.4.4
Fault Location, Isolation, and Service Restoration ......................................................................... 27
3.4.5
Feeder Protection and Control ...................................................................................................... 28
3.5
Smart Meters and Advanced Metering Infrastructure ........................................................................... 28
3.5.1
AMI Network Architecture ............................................................................................................. 29
3.5.2
Smart Meter Technology .............................................................................................................. 30
3.5.3
Smart Meter Standards ................................................................................................................ 31
3.6
Networking Technologies ................................................................................................................... 33
3.6.1
Overview of Smart Grid Networking .............................................................................................. 33
3.6.2
Second Generation, Third Generation, and Fourth Generation Cellular ........................................... 35
3.6.3
Power Line Communications ........................................................................................................ 36
3.6.3.1 Broadband over Power Line ..................................................................................................... 36

3.6.4
Metro-Scale Wi-Fi ........................................................................................................................ 37
3.6.5
Fiber Optics ................................................................................................................................ 37
3.6.6
Coaxial and Copper Cable ........................................................................................................... 37
3.6.7
Proprietary RF Mesh .................................................................................................................... 37
3.6.8
Satellite ...................................................................................................................................... 38
3.6.9
Networking Technology Comparison ............................................................................................. 38
3.7
Software and Services ....................................................................................................................... 39
3.7.1
Outage and Fault Management ..................................................................................................... 39
98
3.7.2
Asset Management and Monitoring ............................................................................................... 39
3.7.3
Distributed and Alternative Generation Integration ......................................................................... 39
3.7.4
Demand Response and Dynamic Pricing ....................................................................................... 40
3.7.5
Contingency and Capacity Planning .............................................................................................. 40
3.7.6
Workforce Automation .................................................................................................................. 40
3.7.7
Data Historian ............................................................................................................................. 40
3.8
Cyber Security ................................................................................................................................... 41
Section 4 .......................................................................................................................................................... 43
Key Industry Players ........................................................................................................................................ 43
4.1
Grid Infrastructure Vendors ................................................................................................................ 43
4.1.1
ABB Group .................................................................................................................................. 43
4.1.2
Alcatel-Lucent ............................................................................................................................. 43
4.1.3
Alstom Grid ................................................................................................................................. 44
4.1.4
American Superconductor ............................................................................................................ 44
4.1.5
Cooper Power Systems ................................................................................................................ 44
4.1.6
CURRENT Group ......................................................................................................................... 45
4.1.7
Daiichi Electronics ....................................................................................................................... 45
4.1.8
Eaton .......................................................................................................................................... 45
4.1.9
EFACEC (Advanced Control Systems) .......................................................................................... 46
4.1.10
Ericsson ...................................................................................................................................... 47
4.1.11
Fujitsu ......................................................................................................................................... 48
4.1.12
GE Energy .................................................................................................................................. 48
4.1.13
Hitachi, Ltd. ................................................................................................................................. 48
4.1.14
Honeywell ................................................................................................................................... 49
4.1.15
Johnson Controls (EnergyConnect) .............................................................................................. 50
99
4.1.16
Mitsubishi Group ......................................................................................................................... 50
4.1.17
NOJA Power ................................................................................................................................ 50
4.1.18
Osaki Electric .............................................................................................................................. 51
4.1.19
S&C Electric Company ................................................................................................................. 51
4.1.20
Schneider Electric ....................................................................................................................... 52
4.1.21
Schweitzer Engineering Laboratories ............................................................................................ 52
4.1.22
Shenzhen Clou Electronics Co., Ltd. ............................................................................................. 52
4.1.23
Siemens Energy .......................................................................................................................... 52
4.1.24
Toshiba ....................................................................................................................................... 53
4.1.25
Yokogawa Electric ....................................................................................................................... 53
4.2
Electric Utilities ................................................................................................................................. 54
4.2.1
North America ............................................................................................................................. 54
4.2.2
Europe ........................................................................................................................................ 55
4.2.3
Asia Pacific ................................................................................................................................. 55
4.3
AMI Vendors ..................................................................................................................................... 56
4.4
Networking and Software & Systems Vendors ..................................................................................... 56
4.5
Applications and Services .................................................................................................................. 58
4.6
Systems Integrators ........................................................................................................................... 61
4.7
Cyber Security Vendors ..................................................................................................................... 62
4.8
Industry Associations ......................................................................................................................... 64
Section 5 .......................................................................................................................................................... 65
Market Forecasts.............................................................................................................................................. 65
5.1
Introduction ....................................................................................................................................... 65
5.2
Market Assumptions .......................................................................................................................... 65
5.3
Forecasting Methodology ................................................................................................................... 66
100
5.4
Smart Grid Technologies Global Forecast ........................................................................................... 66
5.4.1
Global Revenue Forecast by Application ....................................................................................... 67
5.4.2
Cumulative Forecast .................................................................................................................... 68
5.4.3
Year-on-Year Change in Smart Grid Technology Investment .......................................................... 68
5.5
Smart Grid Technologies Regional Forecasts ...................................................................................... 70
5.5.1
Smart Grid Technologies Revenue Forecast: North America .......................................................... 70
5.5.2
Smart Grid Technologies Revenue Forecast: Europe ..................................................................... 71
5.5.3
Smart Grid Technologies Revenue Forecast: Asia Pacific .............................................................. 72
5.5.4
Smart Grid Technologies Revenue Forecast: Latin America ........................................................... 73
5.5.5
Smart Grid Technologies Revenue Forecast: Middle East & Africa ................................................. 74
Section 6 .......................................................................................................................................................... 75
Company Directory .......................................................................................................................................... 75
Section 7 .......................................................................................................................................................... 91
Acronym and Abbreviation List ....................................................................................................................... 91
Section 8 .......................................................................................................................................................... 96
Table of Contents ............................................................................................................................................. 96
Section 9 ........................................................................................................................................................ 102
Table of Charts and Figures ........................................................................................................................... 102
Section 10 ...................................................................................................................................................... 104
Scope of Study ............................................................................................................................................... 104
Sources and Methodology ............................................................................................................................. 104
Notes .............................................................................................................................................................. 105
101
Section 9
TABLE OF CHARTS AND FIGURES
Chart 1.1
Smart Grid Technology Revenue by Region, World Markets: 2012-2020 ..................................... 3
Chart 5.1
Smart Grid Technology Revenue by Application, World Markets: 2012-2020 .............................. 67
Chart 5.2
Smart Grid Technology Cumulative Revenue by Application, World Markets: 2012-2020 ............. 68
Chart 5.3
Smart Grid Technology Year-on-Year Revenue Change by Application, World Markets:

2012-2020 .............................................................................................................................. 69
Chart 5.4
Smart Grid Technology Revenue by Application, North America: 2012-2020............................... 70
Chart 5.5
Smart Grid Technology Revenue by Application, Europe: 2012-2020 ......................................... 71
Chart 5.6
Smart Grid Technology Revenue by Application, Asia Pacific: 2012-2020 .................................. 72
Chart 5.7
Smart Grid Technology Revenue by Application, Latin America: 2012-2020 ............................... 73
Chart 5.8
Smart Grid Technology Revenue by Application, Middle East & Africa: 2012-2020 ...................... 74
Figure 2.1
Scope of Smart Grid Technologies Report ................................................................................. 4
Figure 3.1
Simplified Synchrophasor Data System Schematic .................................................................... 21
Figure 3.2
Large Static VAR Compensator, Allegheny Power Block Oak Substation .................................... 22
Figure 3.3
Distribution Substation (Components Annotated) ...................................................................... 23
Figure 3.4
Typical Opportunity for Volt-VAR Control Technologies ............................................................. 27
Figure 3.5
Example Distribution Feeder Devices ....................................................................................... 28
Figure 3.6
Typical Smart Meter Network Architecture ................................................................................ 29
Figure 3.7
NIST Conceptual Reference Diagram for Smart Grid Information Networks ................................ 32
Figure 3.8
SCADA System General Layout ............................................................................................... 33
Figure 3.9
Smart Grid Networking Architectural Model ............................................................................... 34
Figure 3.10
Performance and Cost Attributes of Primary Communications Technologies ............................... 35
102
Table 3.1
High-Voltage DC Transmission Capabilities in Asia Pacific, Europe, and North America ............. 20
Table 3.2
FACTS Hardware Applications ................................................................................................. 22
Table 3.3
Relative Comparison of Smart Grid Communications................................................................. 38
Table 4.1
Electric Utilities, North America ................................................................................................ 54
Table 4.2
Electric Utilities, Europe .......................................................................................................... 55
Table 4.3
Electric Utilities, Asia Pacific ................................................................................................... 55
Table 4.4
AMI Vendors, World Markets ................................................................................................... 56
Table 4.5
Networking and Software & Systems Vendors, World Markets ................................................... 56
Table 4.6
Applications and Services, World Markets ................................................................................ 58
Table 4.7
Systems Integrators, World Markets ......................................................................................... 61
Table 4.8
Cyber Security Vendors, World Markets ................................................................................... 62
Table 4.9
Industry Associations, World Markets ....................................................................................... 64
103
Section 10
SCOPE OF STUDY
This report is a survey of all smart grid technologies divided into five applications: transmission upgrades,
substation automation, distribution automation, smart grid IT/OT, and smart metering. Pike Research
publishes other reports that perform deeper dives into each of those applications, so this report serves as an
overview of the entire market. As such, the market forecasts in this report are summaries of more detailed
forecasts from other reports. Likewise, the examination of market and technology issues for each application is
presented in more detail in other reports than it is here. Still this report presents an overall view of the major
market and technology drivers that affect participants in the smart grid market. This report, covering all five
application areas, better inter-relates those areas than a single deep-dive report can do.
Although in theory there would be no need for new research or new forecasts to produce this report, market
conditions are ever changing, so some content in this report is updated from what appeared in previous reports
that may have been published in earlier quarters.
SOURCES AND METHODOLOGY

Pike Researchs industry analysts utilize a variety of research sources in preparing Research Reports. The key
component of Pike Researchs analysis is primary research gained from phone and in-person interviews with
industry leaders including executives, engineers, and marketing professionals. Analysts are diligent in
ensuring that they speak with representatives from every part of the value chain, including but not limited to
technology companies, utilities and other service providers, industry associations, government agencies, and
the investment community.
Additional analysis includes secondary research conducted by Pike Researchs analysts and its staff of
research assistants. Where applicable, all secondary research sources are appropriately cited within this
report.
These primary and secondary research sources, combined with the analysts industry expertise, are
synthesized into the qualitative and quantitative analysis presented in Pike Researchs reports. Great care is
taken in making sure that all analysis is well-supported by facts, but where the facts are unknown and
assumptions must be made, analysts document their assumptions and are prepared to explain their
methodology, both within the body of a report and in direct conversations with clients.
Pike Research, a part of the Navigant Consulting, Inc. Energy Practice, is a market research group whose goal
is to present an objective, unbiased view of market opportunities within its coverage areas. Pike Research is
not beholden to any special interests and is thus able to offer clear, actionable advice to help clients succeed
in the industry, unfettered by technology hype, political agendas, or emotional factors that are inherent in
cleantech markets.
104
NOTES
CAGR refers to compound average annual growth rate, using the formula:
CAGR = (End Year Value Start Year Value) (1/steps) 1.
CAGRs presented in the tables are for the entire timeframe in the title. Where data for fewer years are given,
the CAGR is for the range presented. Where relevant, CAGRs for shorter timeframes may be given as well.
Figures are based on the best estimates available at the time of calculation. Annual revenues, shipments, and
sales are based on end-of-year figures unless otherwise noted. All values are expressed in year 2013 U.S.
dollars unless otherwise noted. Percentages may not add up to 100 due to rounding.
105
Published 1Q 2013
2013 Navigant Consulting, Inc.

1320 Pearl Street, Suite 300
Boulder, CO 80302 USA
Tel: +1.303.997.7609
http://www.navigant.com/pikeresearch
This publication is provided by Pike Research, a part of the Navigant Consulting, Inc. (Navigant) Energy
Practice and has been provided for informational purposes only. This publication may be used only as
expressly permitted by license from Navigant and may not otherwise be reproduced, recorded, photocopied,
distributed, displayed, modified, extracted, accessed, or used without the express written permission of
Navigant. Navigant makes no claim to any government data and other data obtained from public sources found
in this publication (whether or not the owners of such data are noted in this publication), and makes no express
or implied warranty, guaranty, or representation concerning the information contained in this publication, its
merchantability, or its fitness for a particular purpose of function. Any reference to any specific commercial
product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily
constitute or imply an endorsement, recommendation, or favoring by Navigant. Navigant does not assume, and
hereby disclaims, any liability that may result from any reliance on or use of any information contained in this
publication, or for any loss or damage caused by errors or omissions in this publication. This publication is
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RESEARCH REPORT

Smart Grid Technologies

Smart Grid Technologies

Smart grid information and operations technology

Market and Trends

Smart Grid Technologies

Smart Grid Technologies

Smart Grid Technology Revenue by Region, World Markets: 2012-2020

(Source: Pike Research)

Substation Automation, published 3Q 2012

Distribution Automation, due to be published 2Q 2013

Smart Grid Information Technology, published 2Q 2012

Smart Meters, published 2Q 2012

High-Voltage Direct Current Transmission, published 2Q 2012

Smart Grid Renewables Integration, published 2Q 2012

Pike Researchs biannual Smart Grid Deployment Tracker

Smart Grid Technologies

Smart Grid Scope

Smart grid information and operations technology

Scope of Smart Grid Technologies Report

(Source: Pike Research)

Smart Grid Technologies

The Case for a Smart Grid

Increasing the reliability of the network

Reducing energy lost in transmission and distribution

Optimizing asset utilization

Reducing network congestion in crowded urban areas where construction of new

Deferring or eliminating the need for additional generation resources

Integrating renewable-source energy generation that may have intermittent inputs at

Integrating other two-way inputs such as distributed generation

Accommodating electric vehicles (EVs)

Enabling customers to more actively manage their own energy consumption

Increasing predictive capabilities to avoid outages and disruptions

Smart Grid Technologies

Improving Grid Reliability

Increasing Grid Efficiency

Smart Grid Technologies

Increasing Grid Capacity

Integrating Renewable-Source Energy

Smart Grid Technologies

Smart Grid Technologies

Smart Grid Technologies

Land Use and Eminent Domain

Grid infrastructure vendors

Smart meter vendors

Applications and services vendors

Cyber security vendors

Smart Grid Technologies

Toshibas acquisition of Landis+Gyr

Schneider Electrics acquisition of Telvent

ABBs acquisitions of Tropos and Ventyx

Siemens acquisition of eMeter

Itrons acquisition of SmartSynch

Smart Grid Technologies

Smart Grid Technologies

Cyber security guidelines

Demand response markets and pricing

Market reforms to facilitate the further integration of renewable energy resources

Transmission planning and cost allocation

Incentive-based rate treatment to encourage transmission investments

Smart Grid Technologies

Minimum 20% reduction in greenhouse gases compared to a 1990 baseline

20% improvement in energy efficiency