Rapid urbanisation, new energy mix will drive switchgears market

Gautam Seth, Joint Managing Director, HPL Electricals Pvt. Ltd., in an interview with EPR Magazine.

Energy trends impacting switchgears market

Switchgear is a phrase used to describe equipment that regulates, switches on or off electrical circuits, and controls the electrical power system. Industry is facing a reduction in production, the supply chain is being disrupted, and prices are fluctuating. The impact of the corona virus on the region’s power sector has also had an influence on the sector. The demand for goods and services, as well as the cash flow of vendors, has significantly decreased. During the forecast period, the worldwide switchgear market is expected to grow at a CAGR of 7 percent by 2026. Further, the switchgear market is expected to be driven by increased energy consumption to stimulate rapid urbanisation and a new generation mix.

Keeping up with the ever-increasing demand for reliable power supply with advanced switchgears

Throughout the power value chain, digitisation of electrical distribution is expected to improve operations and boost flexibility. By optimising switchgear footprint in substation rooms and using energy efficiently for switch gear, digital switchgear makes a significant contribution to increasing operational efficiency. For example, in medium-voltage switchgear with 30 panels operating at 11 kV, the width can be reduced by around 7 percent and the energy consumption of the switchgear reduced by about 300MWh over its lifetime.

Cost complication and obtaining raw materials remains to be a challenge

Switchgears disconnect electric circuits from the power source, allowing maintenance tasks to be carried out safely. Switchgear is used by energy consumers to protect electrical equipment from surges. The switchgear is expensive due to all of these features. A switchgear assembly has two components, such as control panels, current transformers, potential transformers, protective relays, and associated circuitry that monitor, control, and protect the power-conducting components, and power-conducting components, such as switches, circuit breakers, fuses, and lightning arrestors, that conduct or interrupt the flow of electrical power. These components combine to form a complex and costly switchgear solution. The capital-intensive nature of switchgear may operate as a significant barrier to its market expansion.

The cost of electrical power, of course, is directly related to every industry and firm. The energy sector, however, is probably the most obvious example of rising raw material costs: actual prices for crude oil, natural gas, coal, and uranium have increased by 10 percent each year, or more than 2.5 times since 2000.

Rising imports impacting the domestic switchgear market players

Increasing electricity demand is due to growing population, economic expansion, urbanisation, industrialisation, and rural electrification projects, particularly in India, which are leading the demand for switchgear. The key challenge for Indian electrical and electronics industry is to upgrade its manufacturing process by adopting Industry 4.0, artificial intelligence (AI), IoT, etc as soon as possible to compete with the global market. Indian government must push for production of goods competitively by adopting cluster approach in manufacturing with innovation and new technology to develop quality and cost competence products to decrease the import of electrical equipment and accessories. 

Increasing localisation and domestic manufacturing of industrial switchgears

The global switchgear sector has been impacted by the COVID-19 outbreak. As countries adopted partial or complete lockdown strategies to deal with the pandemic, different enterprises in the electricity sector throughout regions have been forced to shut down their industrial facilities and services. The three main power projects have also been suspended or postponed by enterprises around the region. Furthermore, the COVID-19 pandemic has had an effect on ongoing projects and the power industry’s whole supply chain as well.

To ensure reliable and proper operation in the substation environment, switchgear must meet or exceed high criteria. Hence, before installing electrical devices, such as switchgear, it is important to consider the surrounding environment.

Prospects for green, sustainable and efficient switchgears

Sustainability goals are established in place across all industries to gradually improve operational efficiency, with ambitious targets set to significantly reduce greenhouse gas emissions. To meet the targets, all elements of the operations must contribute and all energy-saving opportunities must be properly examined.

Maintaining the switchgear room temperature is necessary not only for the equipment’s performance, but also for ensuring the switchgear’s components’ guaranteed lifetime.

This requires the installation of an adequately sized air conditioning system, which in some cases may have to run every day of the year, every hour of the day. It’s obvious that the smaller the room is and the less heat the switchgear in it generates, the less energy the conditioning systems will be demand. The overall switchgear heat input is reduced by up to 30 percent due to AC losses in layered technology.