Distribution Efficiency Initiative

The overall objective of the Distribution Efficiency Initiative (DEI) is to transform the distribution system market, supporting distribution engineers and utility management in adopting more efficient DEI strategies and technologies when appropriate. The DEI project identifies and supports efficiency improvements in utility distribution system design and operations available to Northwest utilities.

The project is designed to demonstrate a variety of voltage regulation strategies to document the cost, benefits and successful practices required to achieve efficiency improvements for light commercial and residential customers. The emphasis is on cost-effective design, construction and operational decisions that optimize the regulation of local distribution service voltage, also known as conservation voltage regulation, or CVR.

The project employs four strategies to achieve this optimization:

• A simple approach focused on utility and contractor delivered enhancements to substations and feeders
• A customized approach for large utilities
• An automated system approach, requiring SCADA installation and automated controls
• Load research to determine savings on the customer side of the meter for various service voltages.
  

The project consists of three phases, the first of which NEEA has funded:

• Phase 1 – Confirm and validate costs, benefits, and implementation strategies and tools.
• Phase 2 – Apply communication, marketing, regional policy implementation and utility decision making tools.
• Phase 3 – Integrate project results into utility decision making.
  

The Phase 1 project comprised four major components:

• A load research study in which participating utilities installed voltage regulators on 395 homes in the Northwest.
• A pilot demonstration project in which participating utilities implemented voltage reduction strategies on 31 feeder lines from ten selected substations.
• A Distribution Efficiency Guidebook for utilities to help in planning distribution system improvements.
• Accompanying software decision-making tools.

The primary objective of the two research efforts was to determine whether conservation voltage reduction resulted in documentable energy savings. Phase 1 of the project ran from 2003 through 2007. Launch of Phase 2 is pending funding.

The following are the 13 Northwest utilities that participated in the initiative, and their corresponding projects:

• Voltage regulators were installed on 395 homes at 11 utilities participating in the Load Research Study.
• Ten substations received various system improvements and methods for controlling voltage on 31 feeder lines at six utilities participating in the Pilot Demonstration Project.

Key Accomplishments

• The Phase 1 effort was completed in December 2007.
• The Final Report shows that “operating a utility distribution system in the lower half of the acceptable voltage range (120-114 volts) saves energy, reduces demand, and reduces reactive power requirements without negatively impacting the customer. The energy savings results are within the expected values of 1 to 3 percent total energy reduction, 2 to 4 percent reduction in kW demand, and a 4 to 10 percent reduction in kvar demand.”
• Depending on types of CVR strategies chosen, potential regional energy savings range from 100 to 270 aMW.
• Thirteen Northwest utilities participated in the initiative.
• Eleven utilities participated in the Load Research Study; voltage regulators were installed on 395 homes.
• Six utilities participated in the Pilot Demonstration Project; ten substations received various system improvements and methods for controlling voltage.
• Improvements in existing technologies and new technology designs occurred as a result of the DEI study.

Indicators of Market Progress

• Demonstrate and quantify the costs and benefits of a range of DEI options. Status: Completed in Phase 1.
• Develop and introduce tools that facilitate the analysis of distribution efficiency and simplify its application. Status: Guidebook developed in Phase 1; to be introduced in Phase 2.
• Develop, validate and regional adoption by utilities of a benefits calculator to be used in utility programs. Status: Tools completed in Phase 1, regional adoption to begin in Phase 2.
• Northwest utilities recognize that distribution efficiency is a viable alternative in the capital and operations budget setting processes. Status: Marketing to begin in Phase 2, moving toward regional adoption in Phase 3.