Switchgear is a term linked with power system security and is used for regulating, switching on or off the electrical circuit, and monitoring in the electrical power system is known as switchgear. The different factors of switchgear are circuit breakers, isolators, relays, switches, fuses, and control panels. It is used for de-energizing the gear for testing and maintenance and for dispersing the fault. Switch Board enclosure making is the first step of producing the same and a certified Electrical company do the components fit out on the custom made enclosure to suit the end client's need.
Market Summary
It has been predicted that the switchgear market in Australia will grow at a CAGR (Compound Annual Growth Rate) of 6% over the forecast period 2021 to 2026. Rising electricity generation and consumption, as well as the varying power generation industry dynamics, are likely to be the main drivers for the transmission and distribution of power, which is anticipated to steer the switchgear market in Australia.
· The key element running Australia’s switchgear market growth is the rising construction activities going on in the country due to the increasing attention on infrastructure as well as a growing demand for renewable energy sources.
· Increasing expenditure for infrastructural growth along with supervisory measures for the enlargement of the power grid in rustic areas is enhancing the market size. To accomplish operational safety and security in industrial companies, government instructs to substitute older unneeded systems. This is also triggering the market growth. The Australian Government is providing AUD 100 billion over ten years from 2019-20 through its progressing infrastructure plan to help manage its increasing population, meet national cargo challenges, and get Australians home sooner and safer. This involves an extra AUD 23 billion of new funding in the 2019–20 cost for new projects and initiatives that will help every state & territory and provide local job openings.
· The Eastern Australia National Electricity Market (NEM) controls the world’s most extensive unified power system that goes on for more than 5,000 kilometres from North Queensland to Tasmania and central South Australia and meet the order of more than 10 million end-users. This is expected to drive the request for switchgears during the forecast period.
· It is expected that COVID-19 will affect the switchgear market drastically* as main suppliers for the raw materials, as well as the completed products, are greatly impacted. The industry is confronting a reduction in making, interruption in the supply chain, and price variations. The industry is also impacted by the effect of coronavirus on the power sector of the country. Orders for goods and services and cash flow of vendors have significantly reduced.
*Like usual, COVID comes and ruining everything.
Major Market Trends
High Voltage Switchgear to have Major Market Share
· High-voltage components such as circuit-breakers, and disconnectors are found inside of high voltage switchgear. They are mainly used in places like in city buildings, on offshore platforms, office spaces, extensions, on roofs, etc.
· High voltage switchgears are largely categorized as Gas Insulated Switchgear (GIS) and Air Insulated Switchgear (AIS). Power transmission, railways, and mixing of renewable power generation units to the grid are the major applications of GIS.
· Demand for high voltage switchgears will be driven by the country's capability to add renewable power generation units to the grid. For example, according to the Australian Energy Market Operator (AEMO), by the year 2025, the Australian grid could develop 75% of electricity from renewables mostly from wind and solar.
· According to Electricity (Network Safety) Regulations 2015, Western Australia, electricity network operator, or an electrical contractor who aims to design, construct, commission, operate, maintain and/or decommission an electricity network must conform with Australian Standard AS 62271 for high voltage a.c. Switchgear and control gear.
· The key elements driving the development is the rising energy demand and extension/replacement of old switchgear at sub-stations. Also, the order for switchgear in Australia is predicted to rise because of its space optimization, low maintenance, and protection against exterior elements.
Adoption of Renewable Sources of Energy to Drive the Market
· Urged by the South Australia system-wide blackout of September 2016 and the Finkel Review, the government is applying improvements to foster safety of supply, including a retailer reliability obligation, adjustments to system operation, and planning for market design post-2025 at higher levels of variable renewables. This is expected to push the demand for switchgears throughout the forecast period.
· According to Rystad Energy, new projects offered in 2019 represented nearly AUD 60 billion in potential investment, with large-scale solar farms leading the charge. Renewable energy projects accomplished in 2020 include 226 MW Murra Warra Wind Farm in Victoria, 105 MW Nevertire Solar Farm in New South Wales, among others.
· Australia developed a low emission strategy to reach the INDC of 26-28% CO2 emissions reduction in the electricity sector by 2030 based on the outcomes of the 2017 climate policies and Finkel reviews. In 2017, the government launched an AUD 5 million Solar Communities program, which will assist local responses to climate change and deliver lower electricity prices for community organizations. The program will also deliver funding for community groups in chosen regions across Australia to install rooftop solar PV, solar hot water, and solar-connected battery systems.
· Government rules for sustainable energy consumption will steer the demand for switchgear in the country. For example, on 28 June 2019, Standards Australia’s Committee CS-028 on Solar Water Heaters published its first standard on solar air conditioning, named AS 5389. It holds a methodology to calculate the cooling or heating loads of buildings under a range of climatic conditions.
We at Aston Precision can draft the Switch Board enclosure to suit variable requirements. Our team in designing have vast experience working with switch Board enclosure manufacturing. We worked with some of the major electrical companies to custom fabricate the boards for them. If you are in the market for a reliable partner in metal fabrication, give us a call today at 03 8595 6706 or email us at sales@astonprecision.com
