Electricity T&D Infrastructure and Technologies Report Table of Contents

NRG Experts have spent months investigating the Transmission and Distribution market to prepare this report, which offers the most comprehensive information on the global electricity infrastructure. This is a unique in-depth study of electrical power distribution, electrical transmission and smart grid technology. The demand for electrical energy has consistently been increasing.

Today, the focus has moved from increasing power lines, to focusing on installing new grid technology. The aim is to increase the efficiency of the power systems and transmit electricity more efficiently. To meet world energy consumption targets, there is a requirement to use more alternative renewable energy, and find new sources of energy such as solar electric. This extensive report lists country by country data and more.

1 General Overview 13: 1.1 Transmission and Distribution Systems 13; 1.2 Historical Development of Transmission and Distribution 13
2 Introduction 15: 2.1 Why a smart grid? 15; 2.2 Definitions 20; 2.2.1 Products 20; 2.2.2 Products and Business Services 21; 2.3 The Smart Grid 22; 2.4 The economics of the smart grid 26; 2.5 Market Definition and Size 28; 2.5.1 Addressable Market Size 29; 2.6 Capital Expenditure and Operational Expenditure 29; 2.7 Market Factors 30; 2.7.1 The importance of refurbishment, retrofit instead of replacement is rising. 30; 2.7.2 Increasing share of the service element in through-life contracts. 30; 2.7.3 Recognition of the need for increased investment in transmission. 31; 2.7.4 Expansion of distribution networks in large developing countries 31
3 International Transmission Grids 32: 3.1 Europe 32; 3.1.1 UCTE 33; 3.1.2 ETSO 36; 3.1.3 CENTREL 36; 3.1.4 NORDEL 37; 3.1.5 BALTREL – Baltijos Ziedas – the Baltic Ring 39; 3.1.6 UPS Unified Power Systems 40; 3.1.7 BG/RO 42; 3.1.8 SUDEL 42; 3.1.9 Medring 42; 3.2 The Middle East and North African Inter-Connectors 44; 3.2.1 Middle East – Mashreq Arab Countries 45; 3.2.2 North Africa 46; 3.2.3 Interconnection of Power Systems in the Egypt, Iraq, Jordan, Lebanon, Syria, Turkey Interconnection Project 48; 3.3 Pan-African Interconnection Plans 49; 3.3.1 Trans-African – Interconnection between Zaire and Egypt passing through other African countries. 49; 3.3.2 Egypt-Sudan link 50; 3.3.3 Sudan-Ethiopia Power Link 50; 3.3.4 South African Power Pool (SAPP) 51; 3.3.5 Economic Community of West African States (ECOWAS) 54; 3.3.6 West Africa – Interconnection of Mauritania-Senegal-Mali 55; 3.3.7 East Africa – Great Lakes Region 55; 3.4 Americas – from North to South 56; 3.4.1 Canada 56; 3.4.2 United States 57; 3.4.3 South of the Border 60; 3.4.4 The Northern Triangle of Central America 60; 3.4.5 South America Regional Energy Sector Integration 61; 3.4.6 Comision de Integracion Electrica Regional (CIER) 61; 3.4.7 Interconnections in South America 62; 3.5 Asia 63; 3.5.1 South Asian Association for Regional Cooperation (SAARC) 63; 3.5.2 ASEAN Power Grid 64; 3.5.3 Northeast Asia 65; 3.6 Central Asian Grids 67
4 Development Issues of the smart grid 68
5 Utility Storage 70: 5.1 Mechanical Storage 71; 5.2 Electrochemical storage 73; 5.3 Electromagnetic storage 75; 5.4 Water heaters 75; 5.5 Coupling to new energies 76; 5.6 Developments 76
6 Global Standardisation 77
7 National Smart Grid Development Strategies 80
8 European Union 82
9 Rest of the World 94: 9.1 Australia 94; 9.2 Brazil 100; 9.3 Canada 103; 9.3.1 Players 105; 9.4 Chile 105; 9.5 China 106; 9.5.1 Electricity market 108; 9.5.2 State Grid Corporation of China 109; 9.5.3 Electric vehicles 113; 9.6 Ecuador 114; 9.6.1 Players 114; 9.7 India 114; 9.7.1 Players 116; 9.8 Japan 117; 9.8.1 Electric vehicles 125; 9.8.2 Players 125; 9.8.3 Fujitsu 126; 9.8.4 MegaChips 126; 9.8.5 Toshiba 126; 9.8.6 Utilities 126; 9.8.7 International market 128; 9.9 Korea, South 130; 9.9.1 Projects 138; 9.9.2 International market 140; 9.9.3 Players 140; 9.10 Mexico 142; 9.11 New Zealand 143; 9.12 Russia 144; 9.12.1 Players 145; 9.13 Singapore 145; 9.14 South Africa 146; 9.15 United Arab Emirates (UAE) 147; 9.15.1 Players 148; 9.16 United States of America (USA) 148; 9.16.1 Regional variation. 157; 9.16.2 Electric vehicles 174; 9.16.3 Players 174
10 Investment 177
11 Costs 180
12 Security 184: 12.1 Data privacy issues 185; 12.2 Energy Theft 186; 12.3 Malicious intent 186; 12.4 Market size 189; 12.5 Players 189
13 Methodology 192: 13.1.1 Stage 1 – T&D Forecasts 192; 13.1.2 The Master Database 192; 13.1.3 Stage 2 193; 13.1.4 Stage 3 193; 13.1.5 Stage 4 193
14 Sources 195

List of Figures

Figure 2.1. Base, intermediate and peak load by time of day 17
Figure 2.2. Cumulative Hours of Operation 18
Figure 2.3. Traditional and future electric grid systems – Traditional grid (left), future grid (right) 23
Figure 2.4. Meters 24
Figure 2.5. Percentage utility operating savings based on real savings at AMI deployments 28
Figure 5.1. Different grid storage options 71
Figure 5.2. Salt structures and existing gas storage site in Europe 73
Figure 5.3. Projected cost of electric vehicle batteries in the US, 2010 – 2030 75
Figure 6.1. Members of the Global Smart Grid Federation, July 2010 77
Figure 8.1. Liberalisation of the electricity market in Europe 82
Figure 8.2. Smart meter deployment by EU member states 84
Figure 8.3. SmartGrids ERA-NET Project – Participating Countries 88
Figure 8.4. The TSO implementation plan 89
Figure 8.5. Identification of priority functional projects, DSO 90
Figure 8.6. European Electricity Grid Initiative estimated programme costs, 2010 – 2019, € million 91
Figure 8.7. SET Roadmap 2010/2020 proposed to the EU 91
Figure 8.8. Medium and low voltage smart grid projects in Europe 92
Figure 9.1. Australia’s electricity and gas network companies 95
Figure 9.2. Timeline for the development of the smart grid in Australia at the state level 95
Figure 9.3. Priority areas for the Energy Networks Association in Australia, 2010 – 2012 97
Figure 9.4. Macro-grid vision for Brazil 101
Figure 9.5. Major transmission interconnections between Canada and the US 104
Figure 9.6. Investment in the power sector in China, 2006 – 2009, US $ billions 107
Figure 9.7. China Electricity Load & Resource Centres 107
Figure 9.8. Geographic area covered by the two grid operators in China 109
Figure 9.9. Map of the ten electric power companies in Japan by service area 118
Figure 9.10. National trunk line connections in Japan 119
Figure 9.11. Changing factors around electricity demand and supply in Japan 120
Figure 9.12. CRIEPI roadmap of the next generation grid in Japan 124
Figure 9.13. CRIEPI expectations of different ICT networks required 124
Figure 9.14. Japanese grid of the future 125
Figure 9.15. Planned NEDO microgrids in Albuquerque and Los Alamos, New Mexico– Albuquerque (left), Los Alamos (right) 129
Figure 9.16. Procedures for operations of demand resource spot market in Korea 132
Figure 9.17. Schematic of the proposed DRRC’s standard open ADR (automatic demand response) operating system in Korea 132
Figure 9.18. Development of Korea’s planned real-time demand resource trading system 133
Figure 9.19. Ten power IT projects in Korea 136
Figure 9.20. Timeline for the development of the ten power ICT projects in Korea 137
Figure 9.21. Korean players in the Jeju Island smart grid project 138
Figure 9.22. Korean power network 139
Figure 9.23. Wind capacity in the US as a percentage of total installed power capacity 150
Figure 9.24. RPS policies in the US with solar or distributed provisions, October 2010 150
Figure 9.25. Macro-grid vision for the USA 151
Figure 9.26. Categories of US projects receiving smart grid investment grants, July 2010, US $ million 153
Figure 9.27. Locations of smart grid demonstration and large-scale energy storage projects 157
Figure 9.28. Utility scale smart meter deployments, plans, and proposals in the US, September 2010 158
Figure 9.29. Growth market for smart technology in the US, US $ billion 174
Figure 10.1. Financial new investment by technology, 2009, US $ billion 177
Figure 10.2. Corporate and government R&D investment by technology, 2009, US $ billion 178
Figure 10.3. Smart grid capital spending: 2007 – 2010, US $1.68 billion 178
Figure 10.4. Top ten smart grid federal stimulus investments by country, 2010, US $ million 179
Figure 11.1. Projected average cost of smart grid deployment, US $ million 181
Figure 11.2. Projected development of the smart grid market, 2008 – 2030, US $ billion 182
Figure 11.3. Projected smart grid market size, 2009 – 2014, US $ billion. 182
Figure 11.4. Projections for the US and global smart grid market by technology, US $ billion 183
Figure 12.1. Attack points in the smart grid 187
Figure 12.2. Projected size of the smart grid security market by geography, US $ billion 189

List of Tables

Table 2.1. Selected major blackouts 16
Table 2.2. Pricing tariffs for the smart grid 19
Table 2.3. Comparison of Today’s Grid and Smart Grid 20
Table 2.4. Network requirements for smart grid applications 24
Table 2.5. Strengths and weaknesses of different WAN technologies 25
Table 2.6. Overview of IEEE standards 26
Table 2.7. Other technologies promoted by the development of the smart grid market 27
Table 5.1. Main energy storage technologies 70
Table 5.2. Latest prices for energy storage in Great Britain and Germany 71
Table 5.3. Electrochemical Storage Companies 74
Table 6.1. Status of members of the Global Smart Grid Federation, July 2010 78
Table 7.1. Global Smart Grid Development Strategies 80
Table 7.2. Comparison of different smart meter rollouts 81
Table 8.1. Status of the smart grid in different EU countries 84
Table 8.2. Electric and gas metering targets and status in European countries 85
Table 8.3. Founding transmission system and distribution system operators 89
Table 8.4. The TSO/DSO implementation plan 90
Table 8.5. Likely communications technology deployed in different EU countries 92
Table 9.1. Electricity markets in key Australian states 94
Table 9.2. Australia’s activity in the smart grid compared to Europe, the USA and Ontario, August 2010 98
Table 9.3. Selected charges for customers for smart meters in Victoria, Australia in 2010 100
Table 9.4. Policies and actions to promote the development of the smart grid in Brazil 102
Table 9.5. Brazilian utilities and smart grid projects 103
Table 9.6. Planned and ongoing smart grid activities in Canadian provinces, as of May 2010 105
Table 9.7. Trial Projects in China 110
Table 9.8. State Grid’s planned roll out of the Smart Grid 112
Table 9.9. Key developments in the uptake of broadband-over-power line (BPL) by Ecuadorian utilities 114
Table 9.10. Benefits of smart grids to Indian utilities 115 Table 9.11. Ministry of Power fifteen year smart grid road map 116
Table 9.12. Planned smart grid projects in India 116
Table 9.13. Smart meter contracts awarded in India 117
Table 9.14. Japanese smart grid projects, February 2010 121
Table 9.15. Selected smart grid projects in the pipeline in Japan 122
Table 9.16. Next generation energy system expectations for the Japanese smart grid 123
Table 9.17. Smart grid and smart meter projects planned by Japanese utilities 127
Table 9.18. NEDO’s demonstration projects in New Mexico 128
Table 9.19. National Korean Smart Grid Strategy Road Map 134
Table 9.20. In depth Korean smart grid road map 135
Table 9.21. Five areas of the Jeju test bed 139
Table 9.22. Grid upgrades completed and being planned across New Zealand 143
Table 9.23. Smart meter projects in New Zealand 144
Table 9.24. Smart meter projects in South Africa 147
Table 9.25. Main players in UAE smart grid market 148
Table 9.26. Average cost for one hour of power interruption by industry in the US 149
Table 9.27. Number of blackouts in the US every year 149
Table 9.28. US interconnection projects receiving American Recovery and Reinvestment Act funding, December 2009 151
Table 9.29. Incentives for smart grid projects included in the 2007 EISA 152
Table 9.30. Background on the 100 projects receiving smart grid investment grants from the ARRA 154
Table 9.31. US Cyber Security Projects receiving ARRA funds, 23rd September 2009. 155
Table 9.32. Utility scale smart meter deployments, plans, and proposals in the US, September 2010 159
Table 9.33. State regulatory framework summary table, July 2010 165
Table 9.34. US regulatory model examples 168
Table 9.35. Milestones for smart grid R&D projects in the US, US Department of Energy 170
Table 9.36. Products part of a US Department of Energy’s vision for the development of the smart grid 171
Table 9.37. Goals to achieve the US Department of Energy smart grid vision 171
Table 9.38. Selected US Utilities with contracts for smart meters in 2010 175
Table 9.39. Selected US Utilities with contracts with other smart grid companies in 2010 176
Table 11.1. Projected progress and estimated costs in smart-grid implementation from 2008 to 2050 180
Table 11.2. Projected average cost of smart grid deployment, US $ million 181
Table 12.1. Selected known security breaches in the power sector 184
Table 12.2. Key text in the California smart grid privacy law 185
Table 12.3. Methods of manipulation of smart meters 186
Table 12.4. Methods and products used for securing critical enterprise networks 188
Table 12.5. Major defence security players in the cyber security market 190