Business Review Lucy Electric

Our focus is to find efficient and effective ways to safely control and manage the flow of energy in the medium and low voltage markets, evolving existing proven products and expanding ranges where we have niche expertise. Some of the more recent innovations include:

• Digital substation for smart and secure management.

• Smart Eco 12kV vacuum-insulated RMU ranges.

• Gemini 4 remote terminal to expand the management of medium voltage switching.

• Acutek range of low voltage distribution products.

• Market competitive 12kV Aegis RMU specification for India.

• Enhanced 36kV switchgear for renewables grid connection.

Specialising in intelligent, future-focused, secondary power distribution solutions, Lucy Electric has a track record in engineering innovative solutions and applying industry-specific knowledge to support customers.

Our products are used to enable the safe and efficient distribution of electricity, with remote switching and monitoring capability. We have an international network of design, manufacture and supply channels, along with collaborative relationships with specialist third parties. Our products continue to evolve, adding more advanced remote management and data analysis capabilities and responding to the growing needs of the renewables market.

Market overview

Overall, 2022 was encouraging in terms of sales against target and forward orders. Performance across regional markets was mixed. Governments in some jurisdictions held back on financing investment in infrastructure due to the Covid economic drag factor. Lucy Electric established Lucy Electric Australasia Pty Ltd, expanding our footprint in anticipation of an uplift in demand over the medium term.

To meet net zero targets, we expect there to be long-term investment in global electrical distribution networks from governments and utility companies. Our range of approved products and expert services help to solve some of these challenges. As such, there will be ample opportunity for growth in our focused niche segments.

Our products are developed to meet specific market standards and requirements, which facilitates sales in multiple geographies. Cabling arrangements and operating voltages can vary, but the principles for electrical distribution remain the same.

To meet the upcoming European F-gas Regulation in 2026, we have been developing and testing replacement 12kV vacuum-based switchgear, with sales due to commence in 2023.

Connecting renewable energy to the grid, often from remote solar and wind farms, has been another area of growth for the business. For the burgeoning Electric Vehicle (EV) market, we have been supplying a customised package substation and have worked closely with Lucy Zodion on EV charging pillars.

Another key trend is for the management and control of power. As electricity use is set to accelerate into the foreseeable future, Distribution Network Operators (DNOs) need to better understand usage patterns to optimise upgrades, maintenance and replacement. Lucy Electric has a proven solution for demand analytics and is working with civic authorities to trial similar technology for the routine testing of street lighting, which would reduce engineering downtime and inconvenience for road users.

Product innovation

Our vision is to become the leader in engineering intelligent switchgear, enabling people to enjoy the benefits of greener, safer, more reliable electricity. We continue to invest in new products and services to equip utility companies with the latest technology and data capture for energy management.

Manufacturing and supply chain

The drive to decarbonise manufacturing and products has led to changes in the infrastructure of our manufacturing plants and offices, so we have a clear path to being carbon neutral.

To reduce carbon output, meet evolving customer needs, and avoid raw material wastage and cost, we continually invest in value engineering programmes. Our team of highly skilled engineers and suppliers across the globe work together to improve product design and to manufacture more efficiently. This frequently leads to product functionality improvements and the substitution of materials or components with smaller, thinner, more energy efficient and environmentally friendly alternatives.

Supply chain challenges have continued through 2022, particularly from countries still under various forms of Covid restrictions. This has adversely affected the supply of raw materials for the products we make and the investment in new capital equipment for the manufacturing and assembly process. In particular, the severe shortage of semiconductors restricted our manufacturing output, which in turn dampened sales, profit and margin figures.

The locations of our manufacturing plants, whether for full assembly or final assembly, seek where possible to minimise transport emissions and cost.

Our people

We have many talented and committed people in Lucy Electric. We strive to make engineering a desirable and attractive career for all age groups, ensuring that knowledge is transferred to future generations.

Through apprenticeships and our STEM ambassadors, we work hard to develop a pipeline of engineers and operationally skilled independent thinkers. With a strong ethical foundation, our purpose and values attract people with an appetite for the technical execution of environmental improvement.

As the world of digitalisation, big data and IoT evolves, so does the range of skills we need to secure ongoing success. We continuously invest in our people and are now adding more data analytics and systems integration skills to the mix.

Outlook

We continue to benefit from the conversion to renewable energy, the introduction of EVs and the impact on associated infrastructure. Our products assist customers in their pursuit of net zero, and we are ideally suited to provide the safe, reliable and smart electrical solutions that will assist them in achieving their goals.

John Griffiths CEO Lucy Electric