Grid modernization applications and distributed vitality useful resource (DER) development are motivating utilities to spend on distribution grid IoT applied sciences, however this rising market will peak within the late 2020s.
The superior volt/VAR management (VVC) market in the US grew by 39 p.c from 2014-2018, and presently totals half a billion .
The VVC market is made up of , software program, and communications programs that chip away at system losses, scale back the quantity of vitality consumed by properties and companies, and help in renewables integration. Utilities within the US are recognizing the advantages of utilizing IoT expertise to handle voltage and reactive energy (VARs) at a granular stage.
During the last decade, utilities have put in superior VVC options throughout 15 p.c of the US. New analysis reveals that the volt/VAR market will proceed to develop steadily till the late 2020s, presenting a chance for tools producers.
Determine: Cumulative expenditures of utilities in superior VVC initiatives
Supply: Wooden Mackenzie Energy & Renewables
Within the late 2020s, the market’s development price will start to fall at 11 p.c yearly as utilities strategy their feeder protection targets. This can lead to fewer undertaking begins and a corresponding shift from capital expenditure to operations expenditure.
The shift to operational expenditures will favor some segments of the VVC market. For instance, ongoing opex will make sure that the marketplace for superior VVC software program stays sturdy, as licensing charges and software-as-a-service contracts guarantee ongoing income.
Utility preferences for VVC rollout stay fairly various. One instance of that is the shortage of a dominant strategy for internet hosting VVC system intelligence. Centralized management structure, with intelligence embedded in distribution administration programs, is the commonest strategy – however not by a big margin.
Grid modernization proceedings and related state regulatory initiatives proceed to be a most important driver of VVC adoption for utilities. Extra utilities are trying towards superior applied sciences like energy electronics to satisfy rising DER integration wants. Utilities in states equivalent to Hawaii and Colorado are beginning to mix software program, good inverters and energy electronics to extend PV internet hosting capability by 40 to 80 p.c per feeder.
Because the photo voltaic market in the US grows utilities will proceed evolve their VVC methods, utilizing new applied sciences to enhance their current infrastructure.
Extra element on the Wooden Mackenzie Energy & Renewables report ‘Superior volt/VAR management and optimization 2019-2028: US regulation, adoption and market forecast’ might be discovered within the report brochure. For the complete evaluation, together with uncooked knowledge, pivot tables and figures masking VVC market deployments, a VVC market forecast with feeder protection, and a VVC market forecast with expenditures, see the complete report.