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Networks & Infrastructure
Utilities stay the course on smart grid
Investments, funding continue despite economic slowdown
by Samantha Bookman
Large public and private electric utilities are continuing with long-term capital investment programs including smart grid development, despite economic setbacks, a June study by Baltimore, Md.-based Newton-Evans Research Company reports, reflecting a conservative but upbeat attitude toward infrastructure development.
Although some projects were deferred from their initial startup dates, a majority of power companies worldwide still plan for or are implementing capital spending for "control systems, substation automation, smart grid-related programs, and advanced metering," according to a Newton-Evans press release.
The capex and O&M budget planning study had 118 participants, all electric power grid officials from 36 countries.
Several investments for transmission and distribution grid infrastructure components were deferred for 2009, but are expected to rebound by 4Q 2010.
Meantime, smart grid is getting more attention, with investment increases planned. "Projects related to advanced metering infrastructure (AMI) initiatives and for substation automation and new or upgraded grid control and monitoring systems and protection and control equipment appear to be 'pre-approved' at this time for 2010."
The EU's recent regulatory requirement for smart grid to be incorporated across member countries has provided a boost to such planning, as has forecasting of increased energy demand in parts of the Asia-Pacific region and the Middle East.
The Newton-Evans report estimates the total amount of capital spending for transmission and distribution of electricity worldwide to be US $85-100 billion through 2010. Spending in 2009 will fall in the lower end of that range, while investment in 2010 may climb much higher if industrial demand for electricity grows even moderately.
The study, "Global CAPEX and O&M Expenditure Outlook for Electric Power Transmission and Distribution Investments: 2009-2010", is available from Newton-Evans at www.newton-evans.com.
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