Mexico Smart Grid Market to Reach $8.3 Billion by 2020
WASHINGTON, Oct. 11, 2011 /PRNewswire/ -- Northeast Group, LLC today released its Mexico Smart Grid Market Forecast (2011-2020) which projects the total smart grid market will reach a cumulative $8.3 billion by 2020. Mexico trails only Brazil in terms of potential for smart grid in the Latin America region. The smart metering market in Mexico represents the biggest opportunity, with more than 21 million smart meters to be deployed by the end of the decade. Other smart grid market segments such as distribution automation, wide area measurement, and home energy management are also projected to grow strongly over the forecast period.
"Mexico is well positioned to develop into a leading smart grid market, both in the Latin America region and globally. Like other Latin American and emerging market nations, the country faces high rates of electricity theft and power outages, both of which can be reduced through smart grid technologies. Mexico is also uniquely situated to benefit from positive spillovers from the US market. These include smart grid standards, US vendors looking for new markets and a transfer of smart grid technical know-how," according to Northeast Group, LLC.
Northeast Group, LLC continues, "Mexico will also benefit from a single, state-owned utility that ensures a streamlined regulatory framework and efficient deployment. Much like ENEL's pioneering smart meter deployment in Italy, CFE (Mexico's sole distribution utility) can ensure that smart grid deployments are quickly rolled out to all parts of the country."
Mexico's smart meter market alone will contribute $5.1 billion to the overall smart grid market value by 2020. This includes meter hardware, communications, IT, installation costs and professional services. Combined with Northeast Group, LLC's South America forecast (released June 2011), the total Latin American smart metering market is expected to reach nearly 126 million meters by 2020.
In addition to smart meter deployments, Mexico is projected to invest heavily in distribution automation, wide area measurement and home energy management in the later half of the decade. These other segments of the smart grid market make up an additional $3.2 billion in cumulative market opportunity by 2020.
Northeast Group, LLC's report forecasts 14 different segments of the Mexican smart grid market. These include market values for smart metering segments (hardware, communications, IT, installation and professional services), distribution automation (substation automation, FDIR, volt/VAR optimization and grid monitoring), wide area measurement, home energy management (home area networks, smart solar inverters, and electric vehicle supply equipment) and an electric vehicle penetration forecast. In addition to market forecasts, the report highlights domestic Mexican firms poised to partner with international smart grid vendors.
The report is 67 pages long and includes over 40 charts, tables and graphics. Primary and secondary research was completed using English and Spanish sources. To find out more information on the report, visit Northeast Group's website (www.northeast-group.com) or email Ben Gardner ([email protected]).
ABOUT: Northeast Group, LLC is a Washington, DC-based research and consulting firm focused on the smart grid market in both developed and developing countries. We offer market research reports as well as client-based consulting services. www.northeast-group.com
Key questions answered in Mexico Smart Grid Market Forecast (2011-2020) include:
- How will the combined smart grid market develop and what is its value over the next decade?
- What are the market possibilities for PLC and wireless mesh communications technologies in Mexico?
- How much value will smart metering, distribution automation and home energy management each add to the Mexico smart grid market by 2020?
- Which international vendors are already active in Mexico? Which domestic vendors are poised to partner with international firms to exploit the growing smart grid market?
- What is the size of the professional services market out to 2020 for AMI-related projects?
Table of Contents | |||||
i. Executive Summary | 1 | ||||
ii. Methodology | 5 | ||||
1. Introduction | 7 | ||||
1.1 Smart grid in Mexico | 7 | ||||
1.2 Smart grid's role in Mexican energy policy | 12 | ||||
2. Mexico smart grid snapshot | 15 | ||||
2.1 Current situation | 15 | ||||
2.2 Comparison to other emerging markets | 17 | ||||
2.3 Electricity industry structure | 19 | ||||
2.4 Smart metering regulatory framework | 23 | ||||
2.5 Market drivers and barriers | 24 | ||||
2.6 Recent activity | 29 | ||||
3. Smart grid market forecast | 33 | ||||
3.1 Assumptions | 33 | ||||
3.2 Overall smart grid forecast | 34 | ||||
4. Detailed smart grid market forecast and technology | 36 | ||||
4.1 AMI | 36 | ||||
4.1.1 Meter hardware | 36 | ||||
4.1.2 Communications options | 37 | ||||
4.1.3 IT: meter data management and customer | 40 | ||||
4.1.4 Professional services | 41 | ||||
4.1.5 Installation costs | 41 | ||||
4.2 Wide area measurement | 42 | ||||
4.3 Distribution automation | 43 | ||||
4.3.1 SCADA and RTU systems | 43 | ||||
4.3.2 Advanced distribution automation | 44 | ||||
4.3.2.1 Substation automation | 44 | ||||
4.3.2.2 FDIR | 45 | ||||
4.3.2.3 Volt/VAR optimization | 46 | ||||
4.3.2.4 Grid monitoring and control | 46 | ||||
4.3.3 Recent distribution automation projects | 47 | ||||
4.4 Home energy management | 48 | ||||
4.4.1 Home area networks | 48 | ||||
4.4.2 Distributed generation: solar inverters with | 49 | ||||
4.4.3 Electric vehicle supply equipment | 50 | ||||
5. Vendor activity | 52 | ||||
5.1 Domestic vendors | 52 | ||||
5.1.1 Domestic vendors active in smart grid | 52 | ||||
5.1.2 Domestic vendors in the electrical | 54 | ||||
5.2 International vendors | 55 | ||||
5.2.1 International vendors in AMI projects | 55 | ||||
5.2.2 International vendors in distribution | 56 | ||||
5.2.3 International vendors poised to expand | 58 | ||||
6. Conclusion | 60 | ||||
6.1 Next steps | 60 | ||||
List of Figures, Boxes, and Tables | ||
Mexico smart grid: key takeaways | 3 | |
Mexico smart grid: leading indicators | 4 | |
Figure 1.1: Smart grid value chain | 7 | |
Figure 1.2: Smart grid model highlighting focus in Mexico | 8 | |
Table 1.1: Demand response options | 11 | |
Figure 1.3: Actual and projected oil production in Mexico | 12 | |
Table 1.2: Mexican legislation and decrees affecting smart grid | 13 | |
Figure 2.1: Current installed base of smart meters in Latin | 15 | |
Figure 2.2: Smart meter market potential matrix | 16 | |
Figure 2.3: Per-capita electricity consumption | 17 | |
Figure 2.4: Per-capita CO2 emissions | 17 | |
Figure 2.5: Actual and forecasted GDP growth in Latin America | 18 | |
Figure 2.6: Residential electricity prices | 18 | |
Box 2.1: Smart grid throughout Latin America | 19 | |
Figure 2.7: The divisions of CFE | 20 | |
Figure 2.8: Electricity generation mix | 21 | |
Figure 2.9: Percentage renewable energy consumption | 21 | |
Box 2.2: Mexican political scene - a new PRI? | 22 | |
Figure 2.10: Global distribution losses | 24 | |
Table 2.1: Consumer appliance ownership in Mexico | 25 | |
Figure 2.11: Power outages per year | 26 | |
Figure 2.12: Renewable energy potential in Mexico | 27 | |
Table 2.2: Smart grid drivers and barriers in Mexico | 28 | |
Figure 2.13: Distribution losses in Mexico | 30 | |
Table 2.3: Existing base of smart meters in Mexico | 30 | |
Box 2.3: Mexico and the Smart Grid Maturity Model | 31 | |
Figure 3.1: Timeline of smart grid progress in Mexico | 33 | |
Figure 3.2: Combined smart grid forecast (2011-2020) | 34 | |
Figure 3.3: Mexico smart meter forecast (2011-2020) | 35 | |
Figure 3.4: Mexico smart meter penetration rate (2011-2020) | 35 | |
Figure 4.1: AMI cost breakdown | 37 | |
Figure 4.2: AMI forecast (5 components, 2011-2020) | 38 | |
Table 4.1: AMI communications technologies | 39 | |
Figure 4.3: Mexico phasor measurement unit forecast | 42 | |
Figure 4.4: Distribution automation forecast (4 components, | 43 | |
Figure 4.5: Timeline of distribution automation progress | 45 | |
Figure 4.6: Home energy management forecast (3 components, | 49 | |
Figure 4.7: Electric vehicle forecast (2011-2020) | 50 | |
Figure 5.1: Vendors active in smart grid in Mexico | 52 | |
Table 5.1: Domestic electricity sector vendors in Mexico | 54 | |
Table 6.1: The next steps and necessary actions | 60 | |
SOURCE Northeast Group, LLC
Share this article