Recloser Market

Recloser: Enhancing Electrical Grid Reliability and Efficiency

In the realm of electrical power distribution, reclosers play a pivotal role in ensuring the reliability and efficiency of the grid. This essay explores the concept of reclosers, their significance in the electrical infrastructure, and the top impacting factors and government policies influencing their adoption.

Understanding Reclosers

A recloser is an intelligent and automated device used in electrical distribution networks to protect against faults and disruptions. It serves as a circuit breaker that automatically detects faults, such as short circuits and overloads, and restores power supply to the affected section of the grid after a brief interruption. Reclosers are strategically positioned along power lines to minimize downtime and reduce the need for manual intervention during power outages.

Significance of Reclosers in Electrical Infrastructure

a. Grid Reliability: Reclosers play a crucial role in maintaining grid reliability by quickly isolating faulty sections and re-energizing them after a temporary interruption. This swift response helps minimize the impact of faults on customers and reduces outage durations.

b. Power Quality Improvement: By promptly restoring power after a temporary fault, reclosers contribute to maintaining stable power supply and improving overall power quality for end-users.

c. Cost-Efficiency: Reclosers enable automatic fault clearance, eliminating the need for manual interventions and reducing downtime, which results in cost savings for utilities and consumers alike.

Top Impacting Factors on Recloser Adoption

a. Grid Modernization: The ongoing efforts to modernize electrical grids with advanced smart grid technologies create a favorable environment for recloser adoption. As part of the modernization process, utilities are investing in intelligent devices like reclosers to enhance grid performance and reliability.

b. Renewable Energy Integration: With the increasing penetration of renewable energy sources, such as solar and wind, into the grid, reclosers play a crucial role in managing fluctuations and ensuring smooth integration without compromising grid stability.

c. Urbanization and Population Growth: Rapid urbanization and population growth lead to higher energy demand. Reclosers aid in effectively managing the electrical distribution network, accommodating increased loads, and reducing the likelihood of widespread blackouts.

Government Policies Promoting Recloser Implementation

a. Grid Resilience Initiatives: Governments worldwide are recognizing the importance of grid resilience and promoting the deployment of advanced technologies like reclosers to enhance grid stability and adaptability to changing energy landscapes.

b. Renewable Energy Mandates: In line with renewable energy targets, many governments encourage utilities to invest in reclosers and other smart grid technologies to facilitate the seamless integration of renewable energy sources.

c. Power Quality Standards: Governments often enforce power quality standards to ensure a reliable and stable power supply. The deployment of reclosers aligns with these standards, contributing to the overall improvement of power quality.

Dynamics of Recloser Market

Drivers in Recloser Market

Expansion of Renewable Power Generation and Increased Investment in Renewable Energy:

Notably, start-ups in the United States and Europe have amassed substantial funding for promising ventures in energy storage, hydrogen utilization, and renewable energy technologies. Over the past decade, renewable technologies have commanded a substantial 70% share of investments within the power sector, which have received support from public finance institutions. A significant majority—more than 60%—of the investments in renewable energy originate from the private sector. The instrumental role of governments in furnishing robust policy backing cannot be understated. Consequently, the proliferation of renewable energy sources constitutes a compelling opportunity for existing players in the recloser market. This dynamic landscape stands to benefit the global recloser industry, particularly as the demand for ecologically sound energy solutions escalates. The upsurge in power consumption has necessitated the development of transmission and distribution networks to effectively address the escalating power demand. A notable illustration is the awarding of a USD 800 million contract to Sterlite Power in December 2017 for a power transmission project spanning 1,800 km in Brazil.

Restraints in Recloser Market

Availability of Economical Alternatives to Reclosers:

Across the safety system sector, several manufacturers have begun producing cost-effective alternatives to traditional reclosers. In the context of high-growth markets like India and China, which prioritize fiscal prudence, the accessibility of competitively priced alternatives such as PVB for reclosers emerges as a challenge to the expansion of the recloser market. These markets remain highly sensitive to price considerations during procurement decisions. Furthermore, there are certain technological constraints, including instances of false tripping or insufficient fault detection under specific conditions, communication range or capability limitations, and challenges related to the integration of emerging technologies. Addressing these technological limitations necessitates ongoing research and development endeavors.

Opportunities in Recloser Market

Amplified Investments in Smart Grids

The energy sector is experiencing a surge in investments across its spectrum, with a prominent upswing witnessed in the power domain, primarily revolving around renewable energy sources and grid advancements. This augmentation in expenditure is complemented by heightened focus on enhancing end-use efficiency. At the heart of this evolution lies the concept of a smart grid, a dynamic system that vigilantly supervises and orchestrates electricity transmission, spanning from its generation source to the end users. The smart grid not only optimizes cost but also stands as a pivotal catalyst for bolstering energy security. Its prowess is manifested through elevated system reliability, stability, and resilience. Government entities, acknowledging the gravity of reliability, have incorporated it as a vital facet in their performance-based revenue regulations. These regulations encompass a financial incentive framework, which can be unidirectional, imposing penalties on distributors for non-compliance with standards, or bidirectional, rewarding distributors for exceeding expectations. The ascent of smart grid technologies has engendered fervent demand for reclosers armed with advanced attributes, aligning with the automation and remote management of power systems. A significant focal point has emerged in rendering power grids robust and securing high-caliber power, and reclosers emerge as indispensable tools in realizing these objectives. Moreover, nascent markets and rural expanses ardently require steadfast power supplies, underscoring the pivotal role of cost-effective reclosers in enhancing electricity accessibility. Furthermore, the frontier of technological advancements in fault detection and communication unfolds novel prospects for innovative recloser solutions, poised to elevate power distribution's efficiency and dependability.

Challenges in Recloser Market

Governmental Shortcomings in Grid Stability Investments

The labyrinthine challenges surrounding renewable energy financing persist, enmeshed in the broader financial market dynamics characterized by ephemeral loan tenures, substantial capital expenses, and insufficiency in governmental funding. Diverse nations' governments are allocating resources towards enhancing existing grids and instituting novel ones to foster proficient transmission and distribution of power. However, a noteworthy gap surfaces in their investment allocation towards ensuring the stability of these grids. Recloser installations entail noteworthy capital outlays, representing pivotal components for line upgrades and the modernization of infrastructures.

Ecosystem of Recloser Market

The electronic segment, categorized by control type, is anticipated to be the largest segment of the recloser market from 2022 to 2027. During the forecast period, the electronic control reclosers are expected to hold the highest market share. These reclosers find applications in various end-use industries such as energy (utilities, oil & gas, renewables), substations, and overhead distribution lines. The market for electronic control reclosers is driven by the growing global demand for grid modernization, particularly distribution automation.

Among the types of reclosers, three-phase reclosers are the most widely used and are typically deployed in three-phase electrical distribution networks that supply power to cities and towns. On the other hand, single-phase reclosers are employed in single-phase electrical distribution networks, commonly found in smaller networks serving homes and businesses. Triple-single-phase reclosers combine the functionalities of both single-phase and three-phase reclosers, making them suitable for networks with a mix of single-phase and three-phase loads.

The phase segment of the recloser market is projected to witness substantial growth during the forecast period, driven by several factors. Firstly, the increasing global population and rising power consumption have led to a higher demand for electricity, necessitating the deployment of reclosers to protect electrical distribution networks from faults and ensure reliable power supply. Secondly, governments and utilities are making significant investments in the expansion of transmission and distribution networks to meet the growing electricity demand, thereby creating new opportunities for the recloser market. Additionally, the rising investments in renewable energy sources, such as solar and wind power, are driving the demand for reclosers. These renewable energy sources are more susceptible to faults compared to traditional fossil fuel power plants, highlighting the need for reclosers to ensure fault protection and grid stability.

Voltage Rating Segments:

The up to 15 kV voltage rating segment stands as the most substantial among its counterparts and is projected to exhibit the highest Compound Annual Growth Rate (CAGR) throughout the forecast period. This projection is grounded in several factors. Notably, the surge in residential power distribution capacity to accommodate the escalating electricity demand in residential areas contributes to the robust growth of this segment. The augmentation of urbanization, augmented investments in smart grid initiatives, and the burgeoning commercial, residential, and industrial sectors collectively drive the demand for reclosers with a voltage rating up to 15 kV.

Market Share and Growth Patterns for Different Voltage Segments:

The low voltage segment is poised to command the largest share of the global market due to the extensive utilization of low voltage reclosers in substations and feeders for tasks such as overcurrent protection and fault isolation. Simultaneously, the medium voltage and high voltage segments are experiencing accelerated growth owing to the expanding footprint of transmission and distribution networks. A pronounced demand within the residential sphere of the distribution network, coupled with the burgeoning residential and commercial sectors in developing economies, propels the market for low voltage segments during the stipulated forecast period. High-voltage reclosers, tailored for voltage levels exceeding 38,000 volts, primarily serve the needs of transmission networks and large-scale power distribution systems. Their role in enhancing fault detection and restoration within high-voltage transmission systems is pivotal in minimizing power outages and bolstering grid reliability. By integrating advanced monitoring and control systems, high-voltage reclosers offer heightened grid management capabilities, thereby supporting predictive maintenance strategies. The ongoing expansion and modernization of transmission networks, driven by burgeoning electricity demand and the integration of renewable energy sources, underpin the demand for high-voltage reclosers, pivotal in maintaining a robust and resilient power grid.

Interruption Type Segmentation:

Within the scope of interruption types, the vacuum type segment asserts its dominance in the market due to its array of advantageous features. These encompass superior arc quenching properties, heightened reliability, cost efficiency, environmental friendliness, and a recyclable technology framework. Conversely, oil interrupting reclosers find their application in power stations and feeders, demanding regular maintenance. Factors such as reduced customization capabilities, the influence of oil properties with temperature variations, and a lack of programmable attributes contribute to a relatively slower growth pace for the oil recloser market throughout the forecast period.

Regional Insights

Asia Pacific's Recloser Market Dominance

Anticipated to reign supreme throughout the projected period, the Asia Pacific region is poised to wield its ascendancy over the recloser market. This dominance stems from escalating investments directed toward smart grid initiatives, automated distribution systems, and comprehensive infrastructure development. The interplay of factors such as burgeoning population, industrial expansion, and rapid urbanization has catalyzed an upsurge in power demand. Consequently, this surge has galvanized the expansion of power generation, transmission, and distribution infrastructure across the region. In a resolute pursuit to elevate its global prominence, China has positioned itself as a pivotal player, intensifying efforts to elevate its power generation capacity through renewable sources. This concerted push aligns with global targets aimed at mitigating greenhouse gas emissions. Noteworthy strides toward clean generation technology in China are propelling the concurrent demand for distribution infrastructure. The International Energy Agency underscores China's commitment to satiate 20% of its energy appetite through low-carbon sources by 2030. Paralleling this trajectory, India has instituted fresh policies and objectives to expand its transmission and distribution network. An illustrative instance is the central electricity authority's plan for 66.5GW of renewable energy in transmission infrastructure, which augments the velocity of recloser market expansion in the forthcoming period. The resounding impact of China's investment in renewable energy reverberates, accounting for a substantial 32% of the global total, trailed by Europe at 21%, the U.S. at 17%, and Asia-Oceania at 15%. This influx of investment from renewable energy channels catalytic growth within the market's contours during the envisaged span.

Global Renewable Energy Investment Dynamics

According to the Renewables 2018 report, global investment in renewable energy tallied an impressive USD 279.8 billion, reflecting a 2% surge from the preceding year, 2016. The fertile terrain for generating power and the impetus to rejuvenate aging power infrastructures for bolstering grid projects resonate in North America, paving a promising trajectory for regional market amplification. The panorama in European nations is underpinned by robust industrialization, a factor that significantly contributes to the region's economic advancement. Noteworthy actors in sustainable industrialization across Europe include the UK, Germany, Norway, Italy, and Russia.

Dominating Companies in Recloser Market

• ABB
• EATON CORPORATION
• SCHNEIDER ELECTRIC
• SIEMENS
• NOJA POWER
• HUBBELL
• S&C ELECTRIC COMPANY
• TAVRIDA ELECTRIC
• ENTEC ELECTRIC & ELECTRONIC
• G&W ELECTRIC
• BRUSH GROUP
• ELEKTROLITES
• GHORIT ELECTRICALS
• ILJIN ELECTRIC
• HUGHES POWER SYSTEM
• NINGBO TIANAN GROUP
• ARTECHE GROUP
• NIKUM ENERGY CONTROL
• SHINSUNG INDUSTRIAL ELECTRIC
• HUAYI ELECTRIC
• ENSTO GROUP

Recent Developments in Recloser Market

• In February 2023, Eaton Corporation made a significant announcement, unveiling plans to invest $100 million in the establishment of electrical production and distribution facilities across North America. The primary objective behind this investment is to bolster the sales of its highly sought-after intelligent solutions, encompassing switchboards, load centers, circuit breakers, and residential solutions that cater to evolving market demands.
• March 2023 marked a pivotal milestone for Eaton Corporation, as it successfully acquired Cooper Power Systems. This strategic acquisition expanded Eaton Corporation's product portfolio, particularly in the realm of reclosers and sectionalizers. These essential components play a pivotal role in the transmission and distribution of electricity, further strengthening Eaton Corporation's offerings in the field.
• The landscape of electrification solutions witnessed a transformative change in June 2022, with ABB's acquisition of GE Industrial Solutions. This acquisition enabled ABB to diversify its selection of sectionalizers and reclosers, which are instrumental across diverse industries such as mining, oil and gas, electric utilities, substations, and renewable energy.
• Reflecting its commitment to innovation, in January 2021, ABB successfully delivered medium- and low-voltage digital solutions for the expansion project at the Shanghai Bailonggang Wastewater Treatment Plant in China. Additionally, ABB designed a customized power management scheme to ensure uninterrupted operations and mitigate downtime during the facility's refurbishment.
• CPS Energy embarked on a notable initiative in July 2021 with the launch of a 4-year Accelerated Recloser Deployment Program in San Antonio, Texas. The program's aim is to strategically install 144 recloser devices, enhancing circuit sectionalization, fault testing, and overall grid reliability.
• In April 2021, Inmarsat unveiled a pertinent whitepaper highlighting the importance of satellite-monitored reclosers, particularly in remote areas. Inmarsat emphasized its BGAN M2M service on its L-band network, offering reliable satellite connectivity with up to 99.9% uptime, even in challenging conditions, excluding polar regions.
• The recloser industry witnessed a knowledge-sharing platform in April 2021, as OMICRON organized the Virtual 6th Annual Recloser & Distribution Automation Workshop. The event facilitated collaboration between recloser and recloser control manufacturers and utilities, providing a space to exchange insights on reclosers, testing, and distribution automation.
• In December 2020, Potomac Edison successfully upgraded 15 substation reclosers in Maryland, implementing single-phase technology to enhance fault isolation while maintaining consistent electricity flow.
• October 2020 saw S&C Electric Company and Western Power Distribution (WPD) achieving a milestone by installing the first S&C TripSaver® II Cutout-Mounted Recloser in the United Kingdom. This deployment is positioned to swiftly respond to transient faults prevalent in the region due to diverse environmental factors, bolstering overall grid resilience.

Reclosers play a vital role in modern electrical distribution networks, safeguarding grid reliability, and efficiency. Their automatic fault detection and restoration capabilities help minimize power outages and improve power quality for consumers. Factors such as grid modernization, renewable energy integration, urbanization, and supportive government policies are driving the adoption of reclosers worldwide. As the electrical grid continues to evolve and adapt to new challenges, reclosers will remain a crucial asset in maintaining a robust and resilient power distribution infrastructure.