The Emerging Electrical Markets for Copper



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The Impact on Copper



Enhanced Wiring Markets
The alternative grades of wiring system available for residential premises are mentioned briefly in Section 5.2.2 above. Over time, it is normal for wiring standards to move up the grade spectrum. As such, the installation of denser wiring systems in itself does not create a new market. We can consider there to be a new market when improved wiring has one of the following characteristics:


  1. A new driver accelerates the rate of rewiring and / or the installation of fuller wiring systems.

  2. Additional requirements of the wiring system that mean the installation of additional wire.

  3. A particular new type of wire is introduced, which in itself can be defined as a new market.

An example of point 1) is rewiring resulting from a more rigorous inspection regime. We consider the potential rewiring market created by inspection associated with the installation of the smart grid below.


An example of point 2) is the additional internal wiring associated with the integration of local electricity generation, heat and rain capture and recovery. This is considered below. We also consider, in more detail, the impact of smart ageing.
Particular types of wire that may be considered as new markets, for example, include various forms of environmentally friendly wiring. These are also considered below.
The Grades of Wiring System: Before considering the new markets for denser wiring, we need to consider the grades of wiring that we find in practice. These are defined in some detail in an ECI white paper on this subject33. Here, five levels of installation are recognised. Average copper consumption per 100 m2 for each is indicated in brackets.


  1. Level 0: No access to electricity (0 kg).

  2. Level 1: Illegal or non-conforming access to electricity (10 kg).

  3. Level 2: Legal or conforming access to electricity – inspection of systems pre final connection (25 kg).

  4. Level 3: Legal & conforming access to electricity – pre-inspection + periodic inspection regimes (30 kg).

  5. Level 4:Enhanced systems requiring power system verification to ensure safe use of increased functionality (55-70 kg):

    1. Comfort based on integrated systems (55 kg)

    2. Smart ageing based on integrated systems (55 kg)

    3. Tele-health based on integrated systems and inter-connectivity with health centres (70 kg).

  6. Level 5: Green building based on integrated systems, energy efficiency, locally generated small power/ renewable (75 kg).

Where there is a well established code in place, as in developed markets, the accepted level of wiring is fairly consistent around the 25 to 30 kg per 100 m2 mark. Higher average rates of copper use often apply where there is a post-connection inspection regime. This is the case despite the fact that, in most cases, even where there is post-connection inspection it tends to affect only a small proportion of properties in any one year, and not to be particularly rigorous.


Partly because there is a lack of inspection, it is probable that a relatively high number of wiring systems in residential premises do not meet with the official standard. This being the case, regular inspection and an awareness of safety hazards has the potential to create a much larger requiring market than we have at present. Rewiring at Level 2 or Level 3 is, therefore, a major opportunity. A total rewiring would give 25-30 kg of copper per 100 m2 of floor space.
Another huge opportunity exists in the potential for raising wiring density from Level 3 to Level 4 or 5. This will give 25-45 kg per 100 m2 extra of copper content, and can apply to new buildings or existing buildings. Enforced rewiring through tighter inspection may also be associated with an upgrade in the wiring system above Level 3 standard, thus enhancing the potential for this market.
Incremental Rewiring and the Smart Grid: In order for the smart grid to operate, a smart meter will have to be installed in every home. A very small amount of copper is used in the meter itself. The real potential lies in rewiring associated with the introduction of the smart grid.
At the time of meter installation, an electrical engineer needs to enter the property to connect the meter to the distribution box. This is to be taken as an opportunity for the utility to inspect house wiring, telling the occupier where the wiring was potentially or actually unsafe or in other ways inadequate.

Figure 103: Copper in Residential Wiring in Place Forecast (kt Cu)




Figure 104: Incremental Rewiring - Base Scenario Forecast (kt Cu)




Figure 105: Incremental Rewiring - Advanced Scenario Forecast (kt Cu)




As the demands of the smart grid on the wiring system, we may expect to see follow up inspections after the initial one, creating more of a regular inspection regime than we have seen previously. We may expect such inspections to lead to an increased awareness of the hazards of old and insufficient wiring, and perhaps greater government action to enforce rewiring.
Whatever the exact mechanism, we may expect the smart grid to be associated with rewiring. This is especially the case in Europe, with its ageing housing stock. With an ageing housing stock and old wiring, this could create a big market for rewiring.
This could be a market that takes off quite quickly. Already, a large meter installation programme is underway in Europe. In Italy, Sweden and Finland, smart metering has already been adopted, or is being implemented. The largest implementation to date is in Italy, where 26 million households have been equipped with meters. Utilities in Spain, France, the United Kingdom, the Netherlands, Portugal and Ireland have committed to meter roll outs.
We have forecast the advanced rewiring market associated with the grid by assuming that a certain percentage of the wiring in the existing building stock will be replaced in each year. We first of all defined an ambitious “target” level, which may be achieved by 2020. This target we define as 0.5% of all residential wiring in Europe, 40% in North America, 15% in China and 20% in the Rest of the world. The targets reflect differences in market maturity and the age of the housing stock.
The target level assumptions give us an incremental rewiring forecast of globally of 120 kt in 2020, rising from 5 kt in 2010 (see Figure 105). While it is possible that such a market may be achieved, we believe that the incremental rewiring market is likely to be much more modest in scale. Our Base Scenario (Figure 104) shows a global market of 30 kt in 2010, of which we expect 7.7 kt to be in Europe.
The incremental rewiring market is likely to consist almost entirely of energy cables, mainly of standard types.

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