The market for smart grid technologies will grow from $33
billion annually in 2012 to $73 billion by the end of 2020, totaling $494
billion in cumulative revenue over that period.
This is according to a new
report from Pike Research, a part of Navigant's Energy Practice.
The challenges ahead translate into strong growth for
vendors of smart grid technologies — transmission upgrades, automation of
substations and distribution, smart grid IT and smart meters.
"The overlay of modern smart grid technologies onto
existing grids promises numerous benefits to utilities, including increased
reliability and capacity, reduced energy losses, and deferring or eliminating
the need for new generation resources," says senior research analyst Bob
Lockhart. "These benefits reach far beyond the business of any particular
utility to underlie economic growth, social well-being, and the shift to energy
sources that are less damaging to the environment."
There is no single "smart grid solution" that will
work for all utilities, according to the report. Utilities are likely to take
individual approaches to smart grids, some starting with smart metering while
others begin with transmission upgrades.
However, the number of smart meter deployments (estimated at
a total of 832 million smart meters during the 2011-2020 timeframe) implies
that quite a few utilities have yet to set out on an advanced metering
infrastructure course but are likely to do so over the coming seven years.
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