Conservation Voltage Reduction (CVR) is a utility strategy that lowers distribution feeder voltage by 1-3% to proportionally reduce customer energy consumption without affecting service quality or equipment operation. This passive demand-management technique requires no customer participation or equipment modifications.
Technical Implementation
Utilities install load-tap-changing transformers at substations to reduce voltage from standard 120V to 116-119V on residential feeders. Each 1% voltage reduction typically saves 0.8-1.2% energy consumption for resistive loads and 0.5-0.8% for motor loads. HVAC systems and lighting respond proportionally to lower voltage.
Efficiency Impacts
CVR programs save 1-3% distribution-level electricity without negatively affecting HVAC performance or customer comfort. Compressor efficiency improves slightly at lower voltage, reducing operating temperatures. Programs cost utilities $5,000-50,000 per feeder for equipment and monitoring infrastructure.
Utility Economics
CVR provides cost-effective load reduction at 1-3 cents per kWh saved. Programs avoid customer incentive costs inherent in other DSM approaches. Utilities reduce peak demand by 0.5-2%, deferring generation investment. CVR integrates effectively with automated demand response systems for enhanced peak period management.