The digital substation market size is projected to reach USD 9.1 billion by 2025, at a CAGR of 7.1% during the forecast period.
A digital substation is
a digitized portion of a substation’s secondary system after eliminating the
majority of analog secondary circuits between the instrument transformers and
protective relays. This is an important aspect of electrical generation,
transmission, and distribution systems, which enable electric utilities and
other industries to remotely monitor, control, and coordinate the transmission
and distribution components installed in the substation.
A digital substation
requires digital communication networks and provides improved capabilities for
advanced grid control as well as helps in collecting operational and asset
data, which can be analyzed to detect and predict failures.
Driver: Improved safety
and effective communication in power distribution and transmission processes
The functionality of a
digital substation system completely relies on the use of an effective
communication system to link various protection, control, and monitoring
components within a substation.
Earlier, most
manufacturers were using their own proprietary communication protocols; some of
the protocols such as Modbus Plus, DNP 3.0, and IEC 60870 were used in
utilities, which did not fully support the interoperability among intelligent
electronic devices (IEDs) provided by different vendors in the substation
automation ecosystem. Therefore, a universal standard, IEC 61850, was
introduced pertaining to substation automation to eliminate the problems
related to interoperability.
Restraint: High initial
set-up costs associated with digital substations
Technological
advancements in the transmission infrastructure segment are expected to play a
vital role in efficient network upgrade and expansion. This is expected to help
in meeting the government’s objective of 24×7 power for all, maintaining a
congestion-free transmission network and ensuring grid stability.
Opportunity: Rising
demand for renewable energy projects
The renewable energy
industry is primed to enter a new phase of growth driven largely by increasing
customer demand, cost competitiveness, innovation, and collaboration.
The renewable energy
sector saw significant demand in different markets. One of the major factors
driving the growth of renewable energy projects is the declining generation
cost of renewable energy sources, rising capacity factors of renewable energy
sources, and increased competitiveness of battery storage. Moreover, concerns
over a carbonconstrained future have also increased the focus of companies on
renewable energy projects. According to the International Energy Agency (IEA),
the generation of renewable energy is expected to expand by 50% in the next 5
years.
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Challenge: Concern regarding
cyber attacks
Many areas in the
electricity network, including the substations, are expanding their existing
systems with digital technology.
The rapid pace of change
in the electric power grid creates a challenging environment for asset owners
and operators of electricity infrastructure to monitor the activities of the
industry and standards organizations, develop an understanding of the security
impacts of new technologies, and assess and monitor cybersecurity risks.
A digital substation is
a highly automated control system where almost all processes of information
exchange between substation components, communication with external systems,
and control of the substation operation are carried out digitally, which is
based on IEC 61850 protocols.
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