Residential Static VAR Compensators (RSVCs) are useful in utility demand-side management by providing several benefits including deferral of distribution infrastructure, mitigation of voltage violations, and conservation by voltage reduction (CVR). System operators face the challenge of maintaining the voltage levels across the distribution system within the ANSI C84.1 Standards: between 114 V (−5%) and 126 V (+5%) on a 120 V base. Therefore, implementing peak-shaving for reducing the peak demand power using CVR becomes a challenge. This article introduces a novel idea to implement peak-shaving using localized devices that are located across the distribution feeder. Such an approach enables electric utilities to perform peak-shaving by using CVR with a higher level of confidence and without introducing voltage violations. The article presents the use of RSVC for peak-shaving based on the concept of CVR. Simulation results show that the peak power demand can significantly be reduced by the RSVC devices. Simulation results also show that the peak-shaving on a feeder located in the northwest of the United States results in a peak power reduction of 4.96%. Compared with a Battery Energy Storage System (BESS) that is commonly used for peak-shaving, the RSVC is a cost-effective and lower-maintenance alternative for peak-shaving.
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