|By Business Wire||
|April 16, 2014 11:15 AM EDT||
One of the latent benefits of smart meter technology, or advanced metering infrastructure (AMI), is conservation voltage reduction (CVR) – systems that can dynamically adjust voltage to optimize and conserve the electricity on the power grid. While few North American utilities have taken full advantage of these techniques to date, CVR is likely to be the next stage in the utilities’ smart grid deployments. Click to tweet: According to a recent report from Navigant Research, cumulative spending by utilities on CVR will reach nearly $4.4 billion from 2014 to 2020.
“Dynamic voltage optimization and conservation represents one of the major breakthroughs in the evolution of smart grid technologies,” says Kristoffer Torvik, senior research analyst with Navigant Research. “Widespread implementation of conservation voltage reduction in the United States could save approximately 40 million megawatt-hours annually – roughly equivalent to the electricity needed to power 4 million homes for 1 year.”
Historically, power delivery loss reduction strategies, especially those aimed at distribution system losses, were not prioritized because of uncertainties in quantifying loss improvements and the difficulty in obtaining sufficient return on investment for projects that were undertaken. Several recent advancements, including improved metering and more powerful communication and control capabilities, have made it possible to more readily identify options for reducing distribution loss and to quantify the benefits of improving overall system efficiency, according to the report.
The report, “Conservation Voltage Reduction”, analyzes the market for CVR in North America. It provides an analysis of the significant factors and drivers that will contribute to market growth for CVR. Market forecasts for unit shipments and revenue for each component type in an integrated CVR solution in North America extend through 2020. The report also examines the building blocks for CVR – telecommunications technologies, primary and secondary equipment, and distribution management systems – and profiles the key industry players active in this emerging field. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, “Conservation Voltage Reduction,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
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