Transmission and distribution infrastructure investment to reach $198 billion by 2024

Sponsored by

Over the next decade, the world will need to invest between $140.2 billion to $170.5 billion per year on traditional transmission and distribution (T&D) infrastructure in order to keep pace with growth in electricity demand.

An additional $8 billion to $27.3 billion will be invested annually in smart grid infrastructure to improve the efficiency and reliability of T&D grids, according to a new dataset by Northeast Group, LLC.  

"The significant need for new power generation capacity makes the headlines on a daily basis. But what is seldom discussed is the equally important need for new T&D infrastructure, which needs an enormous $1.9 trillion in cumulative investment by 2024. This includes substations, power lines and associated equipment and new technology. T&D investment typically represents about 40 percent of total power infrastructure spending," said Ben Gardner, president of Northeast Group.

Investment in grid modernization — or smart grid — is accounting for a growing share of the overall market. In 2014, distribution automation investment is projected to account for 5.4 percent of total T&D spending. This will grow to nearly 14 percent by 2024, with a compound annual growth rate exceeding 13 percent.

Cumulatively, the world will invest $230.2 billion in distribution automation between 2014 and 2024. This will include spending on substation automation; fault detection, isolation and restoration (FDIR); volt/VAR optimization (VVO); and additional grid monitoring and control technologies in the distribution grid.

Geographic regions will vary in their rates of investment. Emerging markets will represent the largest growth in T&D spending, with Africa and Southeast Asia the fastest growing regions as they build out new infrastructure to boost their electrification rates. However, North America and Europe will see lackluster growth in traditional T&D infrastructure spending of around 1 percent, but will account for the majority of smart grid spending.

The individual country with the largest amount of traditional T&D spending will be India, which will outpace China by 2024. Smart grid annual spending on distribution automation will be concentrated in Europe ($11.5 billion per year), followed by North America ($7.5 billion) and East Asia ($6.1 billion), as these regions modernize their existing electric infrastructure. 

Sponsored by
Most Popular Articles

CURRENT MAGAZINE ISSUE

June 2015
Volume 19, Issue 6
cover

Utility Products Topics

Transmission & Distribution
                       Vehicles & Accessories
Tools & Supplies   Safety
Line Construction & Maintenance   Test & Measurement

WEBCASTS

How to deploy mobile forms + devices to speed up field service processes & reporting

Overcoming the pain points associated with any process is much simpler and more cost effective than you think. This webinar will detail the benefits of switching to mobile forms for field data collection and reporting.
 
We'll examine real use cases and ROI of integrating mobile forms within a given field service process, including for work orders, inspections, checklists and proposals.
 
A quick AT&T Mobile Forms demo will reveal the feature rich, user-friendly nature of the solution. You'll see why it’s a must-deploy to speed up data collection, eliminate invoicing/data entry lags and auto-generate/deliver insightful reports.

UTILITY PRODUCTS BUYERS' GUIDE

POWER INDUSTRY JOBS

Industry Company Pages

Keep up-to-date with the latest news and articles from some of the prominent utility product companies and resources.

BUYER'S GUIDE PRODUCTS

Everlast pole tags

Everlast pole tags for distribution poles have been used all over the world in this great earth's worst environment's proving it is the longest lasting product to use on pole's!

Everlast Substation signs

Everlast safety signs and Everlast Substation signs meet all ANSI and OSHA requirements and continue to be readable for the life of the substation. When most signs fail ours shine.

SB01 Splice Enclosure and Accessories

AFL’s SB01 splice enclosure provides protection from all types of elements. From weather to bullets, the iron and steel construction requires no additional protective covering.