[Smart Grid Market Research] (Part 2 of 3 Part Series): The U.S. Smart Meter Uprising, Zpryme Smart Grid Insights, September 2011

Learn more @ www.zpryme.com | www.smartgridresearch.org

Zpryme Smart Grid Insights Presents (part 2 of 3 part series):

Smart Meter Uprising:
With the skies clear of Hurricane Irene, a closer look at U.S.
smart grid expenditures to date.
Copyright © 2011 Zpryme Research & Consulting, LLC All rights reserved.

Smart Meter Uprising: With the skies clear of Hurricane Irene, a closer look at U.S. smart grid expenditures to date.
(Part 2 of 3 Part Series)

“Smart grid devices
could be beneficial in
storm restoration on
the distribution side
indicating to
dispatchers at utilities
when electric service
is lost.”
1 www.zpryme.com | www.smartgridresearch.org Zpryme Smart Grid Insights | August 2011
Quote: Ray Dotter, Strategic Communications Executive Transmission Agency PJM Interconnection, 2011
Image: Hurricane Irene, NASA, 2011


“
Hurricane Irene, U.S. East Coast, & the Smart Grid From North Carolina to New Hampshire, Hurricane Irene
knocked out power, flattened communities, and even
Smart grid devices could be beneficial in storm restoration claimed numerous lives. Economic experts estimate the
on the distribution side indicating to dispatchers at utilities Eastern Seaboard calamity has caused more than $7
when electric service is lost.1 billion in damage.2

- Ray Dotter, Strategic Communications Executive However, in the face of tragedy it was perseverance from
Transmission Agency PJM Interconnection both hard-working professionals from utilities such as
Progress Energy and strong-willed residential communities
Hurricane Irene as of August 29, 2011 at 8:00 a.m. EDT that have been working around the clock to see to it, that
figure1, source: EIA power be restored. The silver lining here is that natural
disasters such as Hurricane Irene transport smart grid
technology to the forefront because it provides a major
opportunity to minimize power loss for storm-affected
communities (actually the East Coast of the U.S., along the
path of Irene, has many proposed projects under
consideration or in development). The energy industry has
taken notice as the number of installed and operational
smart meters across all U.S. Smart Grid Investment Grant
(SGIG) projects has increased from 307,291 to a staggering
5.68 million (see figure 2) from Q3-2010 to Q2-2011 - with
only 1/3 of the total SGIG funds spent to date.
Total U.S. SGIG Funds

What utilities and smart
33%
spent
grid integrators will
make up the next 2/3
67%
remaining of SGIG funding with
only 1/3 spent to date?

2Communications networks were also greatly affected, as more than 1,400 cell towers
and cell sites were damaged or interfered with - mainly in Virginia, New Jersey, New
1 Katie Fehrenbacher, Hurricane Irene highlights need for smarter grid, August 29, 2011. York and North Carolina, source: Federal Communications Commission.


Cumulative SGIG Smart Meters Installed, Q3 2010 - Q2 2011
Just skimming the surface, the smart grid could mean a
as of August 29, 2011 (in millions) great deal to storm-struck communities:
figure 2, source: smartgrid.gov 5.68
6.00
 Reduced repair and restoration times
5.00
4.18  Effective communication (eg. pinpoint outages
4.00
without customers having to call)
3.00  Ultimately, power outages due to storms such as
2.00
1.74 Hurricane Irene could be shortened by integrating
smart grid technology - marking restoration and
1.00 0.31
recovery simpler and less expensive for utilities.
0.00
Q3 2010 Q4 2010 Q1 2011 Q 2 2011
In this report Zpryme analyzed data reported to the
Department Energy (DOE) from 74 of the 99 projects
Just last month Anna Marie Kukec of the Daily Herald awarded SGIG funds in 2009.
asked Tabrina Davis, a spokeswoman for ComEd, and Jim
Chilsen, a spokesman for the Citizens Utility Board, “how Methodology
would the smart grid have helped if it already had been
operational in the recent storm outages here (referring to The purpose of this analysis is to investigate the cost
June 21 and July 11 storms in Chicago, Illinois)?” structure of smart grid programs in the U.S. Further, the
analysis will assist utilities in benchmarking technology cost
“If Smart Grid technology had been in place, here's how it components when they are evaluating future investments
would have minimized the impact of the storm: ComEd in smart grid technology. This analysis will also assist smart
would have known customers were out of power without grid technology providers in evaluating the costs utilities
them having to call us. Technology would have are willing to pay for smart grid technologies.
pinpointed outages allowing us to dispatch crews more
quickly to restore service. Digital automation would have The data in this report was obtained from the United States
rerouted power or corrected a problem before an outage Department of Energy‟s smartgrid.gov website.4 The SGIG
occurs, meaning fewer customers would have seen program consists of 99 projects with a total value of about
outages and thousands of customers may have never $7.9 billion; the federal portion is about $3.4 billion (43%).
experienced an outage.”3
The expense figures in this report reflect the total
expenditures on smart grid projects which have been
3Anna Marie Kukec, Daily Herald, ComEd: Smart Grid would have cut storm power
outages, July 14, 2011. 4 Data current as of August 29, 2011.


awarded SGIG funds. The figures include both expenses
paid for by SGIG funds and from recipient cost share Key Findings (As of August 29, 2011)
funds. Please note that the figures reported on the SGIG
program on smartgrid.gov often change on a daily basis,  Total SGIG expenditures are $2.6 billion; meaning
and thus may not match the data in this report. only 1/3 of the total SGIG award value has been
spent to date across all projects.
Insights (figures 3 – 6)
Total SGIG Expidentures to Date by Segement
 With only 1/3 of the total SGIG funds spent to date, Note: Total Expenditures = $2.6 billion
SGIG projects will continue to be a key driver of the as of August 29, 2011 (in millions)
figure 3, source: smartgrid.gov
overall smart grid market – leaving a massive piece
of the smart grid pie for fast-acting industries such as AMI $1,647.4

energy storage and cybersecurity.
Distribution Automation $600.2

 Over the next 3 to 5 years, utility spending on smart Customer Systems $269.5
meters will continue to make up the bulk of smart
grid expenditures. Electric Transmission Systems $100.9

Distributed Energy Resources
 Fierce competition among AMI and smart meter $5.6

vendors such as Landis+Gyr, eMeter, and Itron will $0 $1,000 $2,000
drive down the costs of these technologies as they
compete for market share in the U.S.
 AMI accounts for the largest share of total SGIG
 No longer in a nascent stage, distributed spending at 63% ($1.65 billion), while distribution
generation, and automation products and automation accounts for 23% ($600.2 million),
technologies will witness a milestone in both utility customer systems account for 10% (269.5 million),
opt-in, and subsequent deployment at the transmission systems 4% (100.9 million), and
beginning of 2012. It‟s also important to note that distributed energy systems (DER) less than 1% ($5.6
given the power outages experienced from million).
Hurricane Irene, the U.S. East Coast will be quick to
reevaluate its need for advanced distributed o Across all SGIG segments, spending on
generation and automation. communications networks total $352.4 million
(13% of total SGIG expenditures).



important to note that smart meter spending
o Across all SGIG segments, spending on IT accounts for 41% of total SGIG spending.
hardware, systems, and applications total
$310.4 million (12% of total SGIG o Across all AMI costs, the average cost per
expenditures). smart meter is $290.30. This includes $189.19
per smart meter, $49.29 per meter for two
SGIG AMI & Customer System Asset Expenditures to Date communications, $28.45 per meter for IT
as of August 29, 2011 hardware, systems, and apps, and $23.37 per
figure 4, source: smartgrid.gov meter for other AMI costs.
Number
Incurred Percent of
Segment Quantity
Cost of Total Projects o From Q3-2010 to Q2-2011, the number of
Reporting
AMI Assets
installed and operational smart meters across
- Smart Meters 5,674,816 $1,073.6 65% 69
all SGIG projects has grown from 307,291 to a
- Two way communications staggering 5.68 million.
$279.7 17% 66
networks and hardware
- AMI IT hardware, systems, and
apps
$161.5 10% 63  A total of 5,217 in-home displays, 472,765 direct load
- Other AMI related costs $132.6 8% 74 control devices, 152,507 programmable /
Total AMI Cost $1,647.4 100% 74 communicating thermostats, and 100 smart
Customer System Assets appliances are in place at SGIG Customer System
- In home displays 5,217 $4.0 1% 42 projects.
- Direct load control devices 472,765 $73.1 27% 44
- Programmable communicating
152,507 $50.6 19% 34  At $115.9 million, IT hardware, systems, and
thermostats
- Smart appliances 100 $0.4 0% 8
applications account for the majority (43%) of
- CS IT hardware, systems, and spending on SGIG customer systems.
$115.9 43% 45
apps
- Other customer system related
costs
$25.4 9% 70  A total of 3,365 automated feeder switches, 5,833
Total Customer System Cost $269.5 100% 70 automated capacitors, 2,581 automated regulators,
Total AMI & Customer System Costs $1,916.9 74 704 feeder monitors, and 6,292 substation monitors
are in place at SGIG Distribution Automation
 Smart meter spending totals $1.07 billion on 5.68 projects.
million meters, and accounts for 65% of total AMI
costs. Combined, communications, IT hardware,  At $224.5 million, automated feeder switches
systems, and apps, and other AMI costs account for account for the largest share (37%) of spending on
35% ($573.8 million) of total AMI costs. It is also SGIG Distribution Automation.


 At $3.5 million for 164 units, stationary electricity
storage accounts for the largest share (62%) of
spending on DER.

 At $19.0 million, IT hardware, systems, and
applications account for the largest share (19%) of
spending on SGIG Transmission Assets. This excludes
spending on „other transmission related costs‟.

SGIG Electric Transmission System Asset Expenditures to Date
as of August 29, 2011
Number
Incurred Percent of
Transmission System Assets Quantity
Cost of Total Projects
Reporting
- PMUs 123 $8.1 8% 12
- Phasor data concentrators 21 $2.1 2% 12
- IT hardware, systems, and
applications that enable transmission $19.0 19% 31
functionalities
- Advanced applications $11.1 11% 14
- Other transmission related costs $60.5 60% 20
Total Transmission Installed Costs $100.8 100% 20



SGIG Distribution Automation & Distributed Energy Resource Asset Expenditures to Date
as of August 29, 2011
Number of
Incurred Percent of
Segment Quantity Projects
Cost Total
Reporting
Distribution Automation (DA) Assets
- Automated feeder switches 3,365 $224.5 37% 46
- Automated capacitors 5,833 $52.7 9% 42
- Automated regulators 2,581 $13.7 2% 32
- Fault current limiter ---- $0.5 0% 4
- Feeder monitors 704 $59.6 10% 27
- Substation monitor 6,292 $41.5 7% 17
- Distribution automation/Substation communication
$71.7 12% 51
networks
- Distribution management systems $60.8 10% 35
- IT hardware, systems, and applications that enable
$14.0 2% 25
transmission functionalities
- Other electric distribution automation related costs $61.7 10% 62
Total electric distribution automation cost $600.6 100% 62
Distribution Distributed Energy Resource (DER) Assets
- Stationary electricity storage 164 $3.5 62% 3
- Plug in electric vehicles / charging stations 6 $0.2 3% 10
- DER interconnection and communication equipment 5 $0.0 1% 5
- Other DER related costs $1.9 34% 21
- Total electric DER cost $5.6 100% 21
Total DA and DER Costs $606.2 74



Zpryme Credits
Editor Managing Editor Research Lead
Robert Langston Sean Sayers Stefan Trifonov

Disclaimer
These materials and the information contained herein are provided by Zpryme Research & Consulting, LLC and are
intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of
such subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal,
investment, consulting or other professional advice or services. The information is not intended to be relied upon as
the sole basis for any decision which may affect you or your business. Before making any decision or taking any
action that might affect your personal finances or business, you should consult a qualified professional adviser. These
materials and the information contained herein is provided as is, and Zpryme Research & Consulting, LLC makes no
express or implied representations or warranties regarding these materials and the information herein. Without limiting
the foregoing, Zpryme Research & Consulting, LLC does not warrant that the materials or information contained
herein will be error-free or will meet any particular criteria of performance or quality. Zpryme Research & Consulting,
LLC expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness
for a particular purpose, noninfringement, compatibility, security, and accuracy. Prediction of future events is
inherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results to
vary materially. Your use of these and the information contained herein is at your own risk and you assume full
responsibility and risk of loss resulting from the use thereof. Zpryme Research & Consulting, LLC will not be liable for any
special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an
action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these
materials and the information contained herein.




Learn more @ www.zpryme.com | www.smartgridresearch.org

[Smart Grid Market Research] (Part 2 of 3 Part Series): The U.S. Smart Meter Uprising, Zpryme Smart Grid Insights, September 2011

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Mehr von Zpryme Research & Consulting, LLC

Mehr von Zpryme Research & Consulting, LLC (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (9)

[Smart Grid Market Research] (Part 2 of 3 Part Series): The U.S. Smart Meter Uprising, Zpryme Smart Grid Insights, September 2011