|
Current News
Trends in Americas Smart Grid Market Through 2020
April 16, 2012
[ back ] [ comment ]
A recent report from GBI Research examines the future of the smart grid market in the Americas through 2020. Key findings from the report are as follows:
U.S. and the EU to Coordinate the Development of Smart Grid Standards
Current US-EU collaboration on standards is expected to address interoperability and data security issues related to the smart grid over the next eight years. In 2011, the US Commerce Department's National Institute of Standards and Technology (NIST) and the EU's Smart Grid Coordination Group (SG-CG) agreed to work together on the development of smart grid standards, since both groups share common goals and areas of focus. As a result, both organizations are working to form a common framework for smart grid standards in order to unlock innovation in this sector. The collaboration is intended to help both continents have as much in common regarding smart grid standards as possible. GBI sees this initiative as a significant step toward solving many of the security and interoperability challenges currently facing the smart grid.
U.S. to Witness Encouraging Growth in the Smart Meters, Synchrophasors and In-Home Displays Markets
According to GBI, the cumulative number of units installed in the US smart meter market is expected to grow from 13.47 million units in 2010 to 74.38 million units in 2020 at a CAGR of 18.6%. The cumulative number of units installed in the US synchrophasors market is expected to grow from 262 units in 2010 to 6,538 units in 2020 at a CAGR of 37.9%. The cumulative number of units installed in the US IHDs market is expected to grow from 130,000 units in 2010 to 20.26 million units in 2020 at a CAGR of 65.7%.
Slow Economic Growth May Affect Long Term Borrowing
Upgrading the existing power system will take a long time and will require large investments. Raising funds is a concern due to the lowering of the US's sovereign credit rating by the Standard and Poor's rating agency from 'AAA' to 'AA+'. This has created a negative outlook on long term debts that will have to be raised to meet fiscal targets, including investments in power infrastructure. This will have a negative impact on governmental loans from the World Bank or the International Monetary Fund (IMF). The government will have to pay high levels of interest or delay projects until the economy has stabilized and the credit rating has improved. In such a scenario, borrowing long term funds for smart grids is a concern, as it will affect long term expansion.
Successful Projects to Encourage Greater Investments in Smart Grid
Various smart grid projects have been initiated in various technology segments like ICTs, cabling technologies, sensing and measurement, and customer interface technologies. The US was the first country to showcase the smart grid as the solution for its energy problems and as an alternative to the aging grid system - other countries such as Brazil and India are willing to take lessons from the US example before initiating deployments of their own. Successful pilot and testing projects will help create a business case that will foster the commercial-scale deployment of technologies. The upgrade of the existing power system is a long term process and will require large amounts of funding by both private and government sectors. Private investment will only be possible when successful business cases can be created, which will provide investors with an understanding about possible returns on any investments they are willing to make. Successful pilot project play a key role in informing these kinds of business case demonstrations.
Source: Smart Grid Market in the Americas to 2020, March 2012, by GBI Research. Reprinted with permission.
Comments
Please note: By posting a comment, you agree to our Terms & Conditions.
|
|
|
|
|