Volt/VAR Control and Daniel Muñoz-Álvarez

Analyst, Grid Edge

Optimization: Technology, alvarez@gtmresearch.com

Applications, Regulation Ben Kellison

Director, Grid Research

and Business Models kellison@gtmresearch.com

April 2018
About the Analysts

Daniel Muñoz-Álvarez
Analyst, Grid Edge
Daniel is a Grid Edge Analyst at GTM Research. He focuses on distribution automation, utility network operations,
grid edge network analytics and utilities’ non-wires alternative projects. Prior to GTM, Daniel pursued a PhD in
Electrical and Computer Engineering with a minor in Applied Economics at Cornell University. He graduated
magna cum laude from Universidad de Los Andes in Colombia with master’s and bachelor’s degrees in Electrical
Engineering.

Ben Kellison
Director, Grid Research
Ben is the Director of Grid Research for GTM Research, specializing in Distribution Automation, Network
Management and Renewables Integration markets. He has authored multiple studies on the smart grid market,
concentrating on policy evolution, technology innovation, the market's competitive landscape and project
economics. Ben has been a smart grid contributor on CNN Money, NPR, and the Texas Tribune. He graduated from
Washington University in St. Louis with a bachelor’s degree in economics and political science.

April 2018 2
 Table of Contents

1. Executive Summary 4
2. Managing Systemwide Power Quality 12
3. Volt/VAR Control System Architectures 22
4. Volt/VAR Control Utility Business Models 31
5. CVR at Scale: Case Studies 40
6. VVC Innovation: Case Studies 54
7. Appendix 67

April 2018 3
List of Figures
• VVC Systems: Business Models, Regulatory
Mechanisms and Value Streams
• The New Distribution Volt/VAR Control
Ecosystem
• Power Electronics Within the Low- and
Medium-Voltage Grid
• Services and Streams of Revenue Involved in
Volt/VAR Control Systems
• Benefit-Cost Analysis of Con Ed’s AMI
Deployment With CVR Benefits
• Utilities and Highlights of VVC Projects Covered
in Two Case Study Sections
• Configurability and Control Scope of VVC
Software Applications
• Characteristics and Drawbacks of
Electromechanical Volt/VAR Control Equipment
April 2018
• Operational Timelines for VVC Equipment
• Power Electronics Within the Low- and Medium-
Voltage Grid
• Substation and Primary VVC Electromechanical
Devices Clash With Increasing PV Penetration at the
Grid Edge and Secondary Circuits
• Volt/VAR Control Systems Architectures by Categories
and Subcategories
• Services and Streams of Revenue Involved in Volt/VAR
Control Systems
• Distribution Loss Reduction via Reactive Power
Compensation
• Voltage and Power Quality Standards Compliance via
Voltage Regulation
• Peak Load Reduction via Dynamic Conservation
Voltage Reduction (CVR)
4
List of Figures (cont.)
• Energy Conservation via Sustained Conservation
Voltage Reduction (CVR)
• Distributed Energy Resource Support: Hosting
Capacity and Operations
• Utilities and Highlighted Projects Covered in This
Section
• Duke Energy’s Legacy Territories VVC Deployments
• Architecture of Duke Energy Ohio’s VVC and DA
Systems
• Duke Energy’s Progress Territory VVC
Deployments
• Infrastructure Behind Progress’ Distribution
System Demand Response Project
• Southern Company DEEP Project Budget and
Deployments
• Avista Utilities’ Smart Grid Projects VVC
Deployments
April 2018
• Utilities and Highlights Projects Covered in This
Section
• Solar Partner Program Hardware and Software
Deployments
• Diagram of Solar Partner Program Communications
Configuration
• Timeline of NY REV Demo: BNMC Distribution Service
Platform (DSP) Engagement Tool
• Timeline of NY REV Demo: Fruit Belt Neighborhood
Solar Program
• BNMC DSP Engagement Tool Deployments
• Fruit Belt Neighborhood Solar Program Services and
Deployments
• Hardware and Software Deployments/Procedures for
VVC Pilot
5
Preview

April 2018 6
Pricing Information

Related Research
The full report can be purchased here for $2,995.
• Blockchain for Energy
The Volt/VAR Control and Optimization report is also available as 2018: Companies &
part of GTM Research’s annual Grid Edge Service. This program Applications for
Distributed Ledger
provides regularly published market reports and notes, as well as
Technologies on the Grid
direct, on-demand access to the analyst team. It also includes
membership to the Grid Edge Executive Council, comprised of
• U.S. Wholesale DER
key players from across the electricity sector. Aggregation: Q4 2017

Contact gridsubscription@gtmresearch.com for demo requests • Grid Edge Data Hub

and subscription pricing.

April 2018 7
GTM Research provides critical market intelligence on:

SOLAR GRID EDGE ENERGY STORAGE

• U.S. Utility-Scale Solar
• U.S. Distributed Solar
• Global Downstream Solar
• PV Module Supply Chain
• PV Systems & Technologies
• Advanced Metering Infrastructure (AMI)
• Customer Analytics & Energy Management
• Network Operations Software & Analytics
• DER Services
• Distribution Automation
• Electric Vehicles
• Microgrids
• U.S. Behind-the-Meter
• U.S. Front-of-Meter
• Costs & Economics
• Technology Advancements
• Global Markets
• Energy Storage Supply Chain

April 2018 8