It's clear that the smart grid still has some challenges to overcome in developed regions such as the US. Securing the grid is becoming a growing concern, and the great number of legacy agencies already involved in the US grid makes a single solution unlikely, at least in the near-term. (See: Securing the Smart Grid.)
Building a smart grid from the ground up has the potential to eliminate many of these legacy problems. According to a recent Northeast Group study, the grid-related opportunities in emerging markets are considerable.
The majority of smart grid activity to date has taken place in well known markets such as North America, Western Europe, and East Asia, according to the report. These developed markets represent more than 95 percent of the current installed base of smart meters worldwide, says the report.
Emerging markets, however, will spend as much as $49 billion on smart metering alone, the Northeast Group predicts. These markets include many of the "sweet spots" already targeted by electronics companies, such as Central/Eastern Europe, Latin America, the Middle East/North Africa, South Africa, and Southeast Asia. According to the report:
Smart grid offers emerging markets a number of potential benefits. Countries can improve overall electric utility reliability, reduce electricity theft rates, manage surging demand and incorporate new sources of renewable energy. Modernizing the electricity infrastructure will be increasingly important as these economies grow quickly over the next several years. The 25 countries in the study are forecast to see average annual GDP growth of 4.3% over the next five years, compared with 1.7% in the developed world.
Nearly a dozen of these countries are positioned to begin large-scale grid deployments within the next few years, the study notes. These include Brazil, Bulgaria, the Czech Republic, Hungary, Mexico, Poland, Romania, Singapore, Slovakia, Slovenia, and the United Arab Emirates. Most of these nations are also being explored by electronics companies as alternatives to manufacturing in Asia. For electronics, opportunities exist in both the equipment and infrastructure markets, says the Northeast Group. Specifically:
Smart metering – or advanced metering infrastructure (AMI) – deployments will make up the majority of initial smart grid activity, creating significant meter hardware, communications, IT, and professional services markets across the 25 countries. Following AMI, there is strong potential for distribution automation, substation automation, and home energy management technologies, including distributed solar generation and electric vehicle supply equipment.
Check out EBN's Logical Link and Asia Time sections for more in-depth looks at some of these nations.
I see companies moving forward with the implementaton of solar energy, in mexico our neightbors run their operations with solar energu and what they don't use is srnt back to the powrr plant.
For as many issues we have here in the states, I know they pale in comparison to some of the huge issues going on in developing countries. Extortion is a huge problem, and many times the local governments are involved so you have no recourse.
Greed and corruption are the killers of innovation the development coutries. It is a pity that it will take a long time for some countries to fully adopt the smart grid .
Extortioning is the prime crime in the developing world when you have to pay for the service you don't really enjoy. There is a country best known to me where you get billed for electricy when you did not even have the power supply. The fact that you have electric cable channelled to your house, you are responsible to pay the estimated bill. Quite unfair at times!
All countries, but especially emerging countries as well under developed countries could benefit from smart metering.
@Dave, you are absolutely correct. Infact in India nearly 30% of the power generated is lost in power theft. I am sure this new technology will help us to reduce problems like power theft.
@Jay--argh! That is so typical. And maddening. talex: interest in the grid ebbs and flows...I think it has reignited becuase budgets for 2012 are in the works. I can only speak for the US, but standardization is a big problem. There are a bunch of folks at work it this and they have made progress. But until standards are signed, sealed and delivered, there won't be any ground-breaking, so to speak.
We have heard of smart grid like at least 3 years ago. But till now it is still not so common that we almost forget about it. Standardization? Government effort? Collaboration of companies?
One of the biggest issues will be cost, and who pays for it. You are correct that even when we do things to save power, water or any other commodity, somebody loses money and tries to make it up somehow. Our local power company has had plans in place to build a new power plant @ 1.2 billion dollars. This was basically expanding their current plant. After all the time promoting 1400 construction jobs and over 100 permanent jobs, they pulled the plug 2 days ago. They say it will cost 20 million dollars to halt the job, and now they want to charge the customers more to pay for it. If we use less power they just raise the rates, kind of like legalized extortion.
Absolutely right, Bolaji. With any initiative like this, you have to ask who has skin in the game? Utilities (as they stand now) have a lot to lose if the grid becomes more efficient. Case in point: every summer, my town limits outdoor watering to every other day to conserve water. We did so well that demand for water dropped substantially. So the water department raised our rates. I'd exepct to see a lot more talking before we see the benefits.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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