Except for a limited number of geographies, the hype surrounding the smart grid’s vaunted ability to aggregate and optimize renewables is largely relegated to PowerPoint presentations, pilot programs, and long range planning. The success record of smart grid renewables integration is a mixed bag, with European countries boldly plowing forward, while many U.S. utilities exhibit what has been described by a former California state regulator as “electrotrophobia” – the fear of change linked to greater reliance upon intermittent renewable energy resources. Pike Research anticipates that this situation will change over the next several years, creating a significant expansion of the market opportunity for smart grid technologies that enable the integration of renewables.
This Pike Research report examines current thinking and practices with regard to a series of smart grid technologies, policies, and applications designed to help integrate large penetration levels of renewable energy into power systems around the world. The study provides market capacity and revenue forecasts for the following technologies: static VAR compensators; synchrophasors; transmission, distribution and residential advanced energy storage systems; demand response; virtual power plants and microgrids. Key industry players are profiled, including SWOT analysis of their market positions, and regional market forecasts for each key segment extend through 2018.
Key Questions Addressed:
Which technologies qualify as smart grid solutions to renewables integration?
Why is HVDC transmission crucial to meeting renewables targets, but is not really part of the smart grid?
What kinds of advanced energy storage work best at the transmission, distribution, and residential points of power grid service?
Who are the key companies betting on this smart grid opportunity, and who are some emerging players that are still under the radar?
What role will micro-inverters, synchrophasors, and demand response all play in helping variable renewables mesh with deregulated power markets?
Have there been any major breakthroughs in the accuracy of wind and solar forecasts?
Who needs this report?
Smart grid technology companies
Microgrid and virtual power plant developers
Wind and solar equipment manufacturers and component suppliers
Utilities
Government agencies
Industry associations
Investor community
Table of Contents
1. Executive Summary
1.1 Introduction
1.2 Smart Grid Technologies
1.3 Smart Grid Renewables Integration Forecasts
2. Market Issues
2.1 Smart Grid Renewables Integration: A Reality Check
2.2 The Smart Grid Umbrella: Distribution- to Transmission-Level Tools
2.2.1 Smart Meter Deployment Trends
2.2.2 Distribution Automation
2.2.3 Substation Automation
2.2.4 SCADA Systems
2.2.5 Static VAR Compensators and Series Capacitors
2.2.6 Synchrophasors
2.2.7 Dynamic Line Rating Systems
2.2.8 Advanced Energy Storage
2.2.9 Microgrids
2.2.10 High-Voltage Direct Current Transmission
2.2.11 Wind and Solar Forecasting
2.3 An Emerging Renewable Energy Economy
2.3.1 Utility-Scale Wind Farms
2.3.2 Offshore Wind Development Trends
2.3.3 Utility-Scale Solar PV
2.3.4 Utility-Scale Concentrated Solar Power
2.3.5 Community Wind
2.3.6 Community Solar PV
2.3.7 Feed-In Tariff Distributed Wind
2.3.8 Feed-In Tariff Distributed Solar PV
2.3.9 Net Metered Distributed Wind
2.3.10 Net Metered Distributed Solar PV
2.3.11 Solar PV Lease Power Purchase Agreements
2.3.12 Off-Grid Wind and Solar PV
2.4 The Business Case for Smart Grid Renewables Integration
2.5 Current Market Dynamics and Drivers
2.5.1 Legacy Grid Embedded with Outdated Business Models
2.5.2 IT Crossovers and Parallels with Telecom
2.5.3 Transmission Infrastructure Shortfalls
2.5.4 Renewable Growth a Global Phenomenon
2.5.5 Archaic Grid Protocols under Attack (and Being Revised)
2.5.6 The Emergence of Automated Demand Response
2.5.7 Electric Vehicles as Grid Resources
2.5.8 Grid Operators Are Taking Action
3. Technology Issues
3.1 A Short History Lesson on the Evolution of the Grid
3.2 Global Power Grid Idiosyncrasies
3.3 Smart Grid Technologies – No Magic Bullets for Renewables Integration
3.3.1 Synchrophasors
3.3.1.1 Basic Principles
3.3.1.2 Strengths and Weaknesses
3.3.1.3 Commercial Time Horizon
3.3.2 Static VAR Compensators
3.3.2.1 Basic Principles
3.3.2.2 Strengths and Weaknesses
3.3.2.3 Commercial Time Horizon
3.3.3 Dynamic Line Ratings
3.3.3.1 Basic Principles
3.3.3.2 Strengths and Weaknesses
3.3.3.3 Commercial Time Horizon
3.3.4 Advanced Bulk Long-Term Storage
3.3.4.1 Basic Principles
3.3.4.2 Strengths and Weaknesses
3.3.4.3 Commercial Time Horizon
3.3.5 Advanced Micro Short-Term Storage
3.3.5.1 Basic Principles
3.3.5.2 Strengths and Weaknesses
3.3.5.3 Commercial Time Horizon
3.3.6 Microgrids
3.3.6.1 Basic Principles
3.3.6.2 Strengths and Weaknesses
3.3.6.3 Commercial Time Horizon
3.3.7 Demand Response
3.3.7.1 Basic Principles
3.3.7.2 Strengths and Weaknesses
3.3.7.3 Commercial Time Horizon
3.3.8 Virtual Power Plants
3.3.8.1 Basic Principles
3.3.8.2 Strengths and Weaknesses
3.3.8.3 Commercial Time Horizon
3.3.9 Wind Forecasting Technologies
3.3.9.1 Basic Principles
3.3.9.2 Strengths and Weaknesses
3.3.9.3 Commercial Time Horizon
3.3.10 Solar Forecasting Technologies
3.3.10.1 Basic Principles
3.3.10.2 Strengths and Weaknesses
3.3.10.3 Commercial Time Horizon
4. Key Industry Players
4.1 Transmission Grid Operators
4.1.1 Energenit.dk
4.1.2 California Independent System Operator
4.1.3 Red Electrica de Espana
4.2 Utilities
4.2.1 Xcel Energy
4.2.2 San Diego Gas & Electric
4.2.3 DONG Energy
4.3 Large Grid Infrastructure Providers
4.3.1 ABB
4.3.2 Alstom Grid
4.3.3 Toshiba
4.4 Non-Utility Renewable Energy-Smart Grid Pioneers
4.4.1 General Electric
4.4.2 Siemens
4.4.3 Petra Solar
4.5 Transmission Grid Technology Vendor Specialists
4.5.1 Schweitzer Engineering Laboratories, Inc.
4.5.2 Rongxin Power Electronic Co., Ltd.
4.6 Advanced Storage System Providers
4.6.1 Xtreme Power
4.6.2 A123 Systems
4.6.3 Demand Energy Networks
4.7 Demand Response + Innovators
4.7.1 Schneider Electric
4.7.2 Honeywell
4.7.3 Princeton Power Systems
4.8 Analytics and Forecasting
4.8.1 IBM
4.8.2 Power Analytics
4.8.3 AWS Truepower, LLC
5. Market Forecasts
5.1 Introduction
5.1.1 Smart Grid Renewables Integration Forecast Overview
5.2 Transmission Markets
5.2.1 North America
5.2.1.1 Case Study: ERCOT
5.2.2 Europe
5.2.3 Asia Pacific
5.2.4 Latin America
5.2.5 Rest of World
5.3 Energy Storage Markets
5.3.1 North America
5.3.2 Europe
5.3.3 Asia Pacific
5.3.3.1 Case Study: Zhangbei Smart Grid Storage
5.3.4 Latin America
5.3.5 Rest of World
5.4 Demand Response Markets
5.4.1 North America
5.4.1.1 Case Study: Pecan Street
5.4.2 Europe
5.4.3 Asia Pacific
5.4.4 Rest of World
5.5 Virtual Power Plant and Microgrid Markets
5.5.1 North America
5.5.2 Europe
5.5.2.1 Case Study: Regenerative Modellregion Harz
5.5.3 Asia Pacific
5.5.4 Rest of World
5.5.4.1 Case Study: Village Power Systems in Chile, Latin America
5.6 Smart Wind and Solar PV Markets
5.6.1 North America
5.6.2 Europe
5.6.3 Asia Pacific
5.6.4 Rest of World
6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
Smart Grid Renewables Integration Revenue by Application, World Markets: 2012 and 2018
Smart Meter Shipments by Region, World Markets: 2010-2020
Utility-Scale Solar PV Cumulative Installed Capacity, United States: 2010-2016
Smart Grid Renewables Integration Revenue by Technology Grouping, World Markets: 2012
Smart Grid Renewables Integration Revenue by Technology Grouping, World Markets: 2018
Smart Grid Renewables Integration Revenue by Region, World Markets: 2012-2018
Wind Integration Energy Storage Revenue by Technology, World Markets: 2012-2018
Solar Integration Energy Storage Revenue by Technology, World Markets: 2012-2018
Dynamic Pricing DR Capacity for Renewables Integration by Region, World Markets: 2012-2018
Cumulative Installed Smart Wind Capacity by Region, World Markets: 2012-2018
Cumulative Installed Smart Solar PV Capacity by Region, World Markets: 2012-2018
Static VAR Compensator Installation Revenue by Region, World Markets: 2012-2018
Synchrophasor System Installation Revenue by Region, World Markets: 2012-2018
Transmission, Distribution, and Residential Storage Capacity, World Markets: 2012-2018
Energy Storage Revenue by Grid Level, World Markets: 2012-2018
Wind Integration Energy Storage Capacity by Technology, World Markets: 2012-2018
Solar Integration Energy Storage Capacity by Technology, World Markets: 2012-2018
Dynamic Pricing DR Revenue for Renewables Integration by Region, World Markets: 2012-2018
VPP Renewables Integration Capacity by Region, World Markets: 2012-2018
VPP Renewables Integration Revenue by Region, World Markets: 2012-2018
Renewables Integration Microgrid Capacity by Region, World Markets: 2012-2018
Renewables Integration Microgrid Revenue by Region, World Markets: 2012-2018
Lack of Transmission to Support Wind Farm Development in the United States
Solar PV Integration Costs for NV Energy in Southern Nevada (Trending Up)
German Integration Costs with Higher Penetration of Solar PV
Future Networked Microgrid VPPs to Serve ISO Organized Markets?
Hourly vs. Continuous Solar-Wind Forecasting Benefits
Siemens SWT 3.6 MW Wind Turbine Frequency Regulation Services
Cost Rationale for Offshore Wind
Grid Impacts of Denmark’s Move to 50% Wind Penetration by 2025
CSP with Thermal Storage Increases Power Value and Grid Stability
Community Wind Capacity in the United States
Denmark’s Cell Controller VPP/Microgrid
Germany’s FIT vs. California’s Net Metering Solar PV
U.S. Distributed Wind Capacity: Net Metering Prime Policy Driver
Net Metering States with Capacity Limits, United States
Solar PV and Diesel Generation Cost Crossover Point: 2001-2011
Moving from Disconnected to Dynamic Energy Management
Germany and Italy Leading World’s Solar PV Market
German Utility Meets More Than 100% of Load with Solar and Wind on May 8, 2011
Grid Operators Plans for SG Technology to Integrate Bulk Wind Power
Smart Grid Defers Major Hardware Transmission Investments
Smart Grid Fundamentals
Pattern of Voltage Levels Delivered to Customers Worldwide
Comparing Scale and Applications of Energy Storage on the Grid Technologies
Denmark Shifting to Real-Time Market via Smart EcoGrid
Transmission to Meet 33% RPS in California to Total $7.2 Billion
World’s First Renewable Energy Control Center
Load and Wind Forecast Errors for the Public Service Company of Colorado
SDG&E Solar PV Growth Is Exponential
Island of Bornholm: Generation Mix
Moving from Reactive to Predictive Integration of Wind Power
Solar PV and Small Wind on Miyako Island, Japan
Conventional and Microgrid Paradigm on Distributed Renewables
VPP Diagram from Siemens, Founder of VPP Supply Concept
Petra Solar Over-Voltage Smart Grid Solar PV Solution
Xtreme Power’s Under-Voltage Solution for Solar PV at Ford Facility
Energy Storage as Technology Fix for Wind Transmission
Solar and Wind Charge and Long-Term Storage Discharge to Match Demand Peaks
Schneider Electric’s Smart Grid Offerings for Wind Power
REV Plugged into Solar PV Parking Lot at Wheeler AFB
Central High-Frequency Link for Four Bi-Directional Loads/Resources
CREZ Projects Approved by ERCOT in 2009
Map of “Reg Mod Harz” Resources
Topology of Huatacondo Project in Chile, South America
List of Tables
Smart Grid Renewables Integration Revenue by Technology Grouping, World Markets: 2012 and 2018
Smart Grid Renewables Integration Revenue by Region, World Markets: 2012-2018
Smart Meter Shipments by Region, World Markets: 2010-2020
Utility-Scale Solar PV Cumulative Installed Capacity, United States: 2010-2016
SWOT Analysis for the Smart Grid
SWOT Analysis for Renewable Energy (Solar and Wind)
SWOT Analysis for Smart Grid Renewables Integration
SWOT Analysis for Synchrophasors and Renewables Integration
SWOT Analysis for SVCs and Renewables Integration
SWOT Analysis for DLR and Renewables Integration
SWOT Analysis for Bulk Storage and Renewables Integration
SWOT Analysis for Micro-Storage and Renewables Integration
SWOT Analysis for Microgrids and Renewables Integration
SWOT Analysis for DR and Renewables Integration
SWOT Analysis for VPPs and Renewables Integration
SWOT Analysis for Wind Forecasting and Renewables Integration
SWOT Analysis for Solar Forecasting and Renewables Integration
Energenit.dk SWOT Analysis
CAISO SWOT Analysis
Red Electrica de Espana SWOT Analysis
Xcel SWOT Analysis
SDG&E SWOT Analysis
DONG Energy SWOT Analysis
ABB SWOT Analysis
Alstom Grid SWOT Analysis
Toshiba SWOT Analysis
GE SWOT Analysis
Siemens SWOT Analysis
Petra Solar SWOT Analysis
Schweitzer Engineering Laboratories SWOT Analysis
RXPE SWOT Analysis
Xtreme Power SWOT Analysis
A123 SWOT Analysis
Demand Energy SWOT Analysis
Schneider Electric SWOT Analysis
Honeywell SWOT Analysis
Princeton Power Systems SWOT Analysis
IBM SWOT Analysis
Power Analytics SWOT Analysis
AWS Truepower SWOT Analysis
Static VAR Compensator Installation Projects by Region, World Markets: 2012-2018
Synchrophasor Installations by Region, World Markets: 2012-2018
Static VAR Compensator Installation Revenue by Region, World Markets: 2012-2018
Synchrophasor System Installation Revenue by Region, World Markets: 2012-2018
Advanced Transmission-Level Bulk Long-Term Storage Installed Capacity by Region, World Markets: 2012-2018
Advanced Micro Short-Term Storage Installed Distribution-Level Capacity by Region, World Markets: 2012-2018
Advanced Micro Short-Term Storage Installed Residential-Level Capacity by Region, World Markets: 2012-2018
Advanced Transmission-Level Bulk Long-Term Storage Revenue by Region, World Markets: 2012-2018
Advanced Micro Short-Term Distribution-Level Storage Revenue by Region, World Markets: 2012-2018
Advanced Micro Short-Term Residential-Level Storage Revenue by Region, World Markets: 2012-2018
Wind Integration Energy Storage Capacity by Technology, World Markets: 2012-2018
Solar Integration Energy Storage Capacity by Technology, World Markets: 2012-2018
Wind Integration Energy Storage Revenue by Technology, World Markets: 2012-2018
Solar Integration Energy Storage Revenue by Technology, World Markets: 2012-2018
Dynamic Pricing DR Capacity for Renewables Integration, World Markets: 2012-2018
Dynamic Pricing DR Revenue for Renewables Integration, World Markets: 2012-2018
VPP Renewables Integration Capacity by Region, World Markets: 2012-2018
VPP Renewables Integration Revenue by Region, World Markets: 2012-2018
Renewables Integration Microgrid Capacity by Region and Segment, World Markets: 2012-2018
Renewables Integration Microgrid Revenue by Region and Segment, World Markets: 2012-2018
Cumulative Installed Smart Wind Capacity by Region, World Markets: 2012-2018
Cumulative Installed Smart Solar PV Capacity by Region, World Markets: 2012-2018
