Transmission & distribution - Global expertise with local solutions
Changes in the Electric Power Generation, Transmission and Distribution industry including 
demand for energy, greener solutions and deregulation continue unabated. This has provided an opportunity for companies operating in this sector to provide expertise to users spanning many different continents and time zones. This trend towards globalisation brings its own unique set of challenges in creating a truly world-wide business model that ensures the most effective solutions are developed for the global market, but still meet the necessary regional and local requirements
When working with a supplier offering global, integrated solutions, customers are looking for long standing experience and knowledge in providing advanced technology to the market. These specific requirements form the foundation of the Centre of Excellence, established by Areva T&D in Stafford. Andrew Klimek, automation products R&D director at Areva T&D discusses the challenges the energy supply industry faces and the reasons behind the decision to create a Centre of Excellence.
The generation, transmission and distribution industry has evolved dramatically in recent years due to the change in business model brought about by deregulation, ecological urgency and an increased demand for power. Deregulation has put limitations on monopoly power by fuelling the need for competitive change within the energy market. Legislative reform has paved the way for free trade, allowing complete flexibility of trading arrangements, on top of the historic monopolist infrastructure. This has the advantage of lowering prices for consumers while giving them increased choice through open competition. Due to the very structured nature of the energy market, innovative ideas have to be developed to support the capacity for free trading and free flow of power. Furthermore, solutions need to be flexible in order for companies connecting to the grid network to be able to utilise new energy sources such as wind and solar. This cannot be facilitated unless businesses within the sector develop and incorporate sophisticated control systems for energy management and limitations on trading in order to make this marginal market available to the transfer of energy power.
Increase in competition associated with the long life of energy infrastructure has, however, led certain functions within utility organisations such as grid engineering to gradually reduce. This regression, often driven by the need to reduce costs, has led to utilities repositioning its business strategy towards planning and strategic management. This has meant there is now a need for suppliers to create new and innovative products, services and management tools as well as the necessary technical training, which will in time, benefit the whole industry.
Stakeholders within the energy market are also increasingly aware of the environmental challenges the industry faces such as reducing CO2 gas emissions, but ultimately, these challenges are centred upon sustainable resource management. This has led to increasing constraints upon the market place with utilities and suppliers having to take greater responsibility for the role they play in their contribution to such problems. This creates a challenge for utilities and, as a result, opportunities have arisen for suppliers to design and deliver innovative and efficient techniques for the transmission and distribution of power which can then be implemented globally. The success of such solutions will be based on the formulation of new accessible strategies for operational management within the market place.
The environmental constraints put on the energy markets are juxtaposed by the explosive expansion of newly industrialised countries such as China and India. Globalisation has seen China grow an astounding 10.5% in Gross Domestic Product (GDP) in recent years, followed by India with a 9.4% GDP increase. Asia's increasing need for high yield energy puts substantial strain on grid infrastructure and use of resources to generate power. To sustain high yield energy supply for today and the future, Distribution Network Operators (DNOs) need technology that can distribute efficiently without overloading the energy grid network.
Further strain is put on the grid infrastructure with the increase in renewable energy sources being connected to the energy supply network. This is due to the fact most renewable energy techniques, such as wind power, have unpredictable output profiles since they are condition dependant. This causes technical problems when they are connected to the grid which was originally designed for consistent high yield power. A solution that can provide grid management with the ability to integrate and control the energy flow will solve such challenges.
The Centre of Excellence forms the platform where innovative thinking and global expertise merge to provide advanced technology solutions crucial to overcoming the industry challenges in this rapidly evolving world. To meet a balance between the constraints put on the energy market and the global requirements for power, the Centre of Excellence offers accessible, end-to-end innovative solutions for grid management, power transmission and local distribution.
The Centre focuses on driving Areva T&D's business across all territories worldwide based on globally recognised processes which deliver a common standard of quality and performance that achieves the highest standard of customer satisfaction. The vision for the Centre of Excellence concept will not only result in the significant improvement of internal business processes but will also encourage more and more talented people to have the drive to want to join the Areva T&D team. Furthermore, the development of the Centre of Excellence will bring global benefits to the whole industry in terms of research and development, implementation of best practice and recruitment of high quality candidates to secure the future of the industry. Areva T&D's successful application of the Centre of Excellence is already evident through its alliance with National Grid in the UK where knowledge sharing is an integral part.
The need to produce higher yields of energy to support industrial development world-wide brings with it unique challenges ranging from physical grid management to the need for expertise and knowledge on global business models. Furthermore, there is a need to invest in sustainable development to ensure that the use of resources and the environment today does not restrict their use by future generations. Systems must be put in place to ensure efficient generation, transmission and distribution of power not only for today's use, but with consideration to future requirements. Areva T&D's investment in the Centre of Excellence aims to ensure all the knowledge, skills and techniques are available to meet the challenges of the 21st Century and beyond. This will help make certain that the global generation, transmission and distribution industry can thrive for many years to come.
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