Navigant Research forecasts energy distribution companies in Europe will spend $23.9 billion to automate or monitor secondary substations over the next decade.
Utilities in countries including France, Italy and Spain are expected to be the highest investors in equipment and services enabling automation of substations.
Factors driving utilities to invest in such technologies include:
- Growing availability of smart metering networks at the grid edge
- The rising need for visibility and control due to distributed generation and electric vehicle proliferation
For instance, an increase in DER is pushing utilities to extend connectivity to secondary substations and to make use of systems such as SCADA to monitor medium and low voltage load and assets.
Extended connectivity assists integration with distribution management systems and full-blown automation for self-healing.
Between $2 billion and $2.5 billion is expected to be spent annually on networking, automation, and monitoring equipment and communications services.
Richelle Elberg, principal research analyst with Navigant Research, said: “As more European utilities face increasingly high distributed generation (DG) penetration, investment across the region is expected to grow rapidly later in the forecast period, while spend slows in countries with major initiatives already underway.
“In the rest of Western Europe and in Eastern Europe, the growth in secondary substation monitoring will be somewhat tied to smart metering deployments, with considerations for DG and electric vehicle (EV) penetration as well.”
For more information about the report, visit Market Data: Automation and Monitoring of Secondary Substations in Europe