Smart Grid News and Analysis

IoT World Forum 2016
IoT World Forum 2016

FLISR Hardware for Electricity Grids Will Reach $5.4 Billion in Market Value by 2023

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The massive destruction of electric infrastructure from storms, such as Tropical Cyclone Sandy in 2012 and the Alabama tornado outbreaks of April 2011, has triggered customer-driven demand for faster service restoration. Fault location, isolation, and service restoration (FLISR) systems combine hardware, software, telecommunications, and grid engineering to decrease the duration of outages as well as the number of customers affected. Click to tweet: According to a new research brief from Navigant Research, the worldwide market for FLISR hardware will grow from $2.4 billion annually in 2014 to nearly $5.4 billion in 2023.

“FLISR is one of the more effective applications of distribution automation technology, and can noticeably improve utility performance metrics such as the system average interruption duration index (SAIDI) and the system average interruption frequency index (SAIFI),” says Bob Lockhart, research director with Navigant Research. “Improving these indicators can lead directly to improved customer satisfaction and reduced penalties by industry regulators, giving FLISR a quantifiable return on investment.”

In the United States, investment grants from the American Recovery and Reinvestment Act funded significant rollouts of advanced metering infrastructure (AMI) systems. Between 2009 and 2012, more than $1 billion was spent on distribution assets, including approximately $300 million on automated switches that could be used for FLISR. While utilities are genuinely interested in smart metering, according to the report, they also see those AMI deployments as a means to acquire the necessary network for distribution automation applications such as FLISR.

The report, “Fault Location, Isolation, and Service Restoration”, analyzes the global market opportunity for FLISR applications. It examines the market drivers and barriers that are affecting FLISR deployments worldwide, including government funding, regulatory reforms, and standards adoption. Global market forecasts for distribution automation and FLISR revenue are segmented by region. The report also provides an in-depth explanation of the various functionalities of FLISR, as well as an illustration of how a FLISR scheme works. An Executive Summary of the report is available for free download on the Navigant Research website.

SOURCE: Navigant Research