Solving Non-Technical Losses Problem by Technical Methods

Non-technical losses in distribution systems comprised about 2-3%, my estimate, of the total system losses. Total distribution system losses equals technical losses plus non-technical losses.

In my experience and some readings, I believe that non-technical losses can be minimized or mitigated by utilizing non-technical strategies.

1. Modeling and benchmarking technical losses thru computer simulations - if a DU can measure the technical losses incurred in operating its distribution system with the variation of supply and demand using a computer program, then the DU is in a position to quantify and identify probable nodes of sources of non-technical losses in the system comparing power/energy output from electricity meters. This approach may take some technical challenges, especially with the database development, but if accomplished the DU will have in its hands a tool that can predict energy efficiency of its distribution system franchise.
2. Installation of totalizing meters - the measurement of energy output from a certain distribution feeder and laterals thru totalizing meters can be an effective way to guard pilferage along the feeder or lateral. Some DUs even install totalizing meters after the distribution transformer feeding a secondary feeder. The accuracy of these totalizing meters must be accounted when investigating or assessing energy input and output among electricity consumers.
3. Statistical analysis of electricity meter readings - ample data from electricity meters can be analyzed statistically over time to estimate significant deviation from usual meter readings. This will help the DU to keep track the energy usage of its consumers and will have a benchmark in case significant meter reading deviation especially at the totalizing meters is observed. Statistical monitoring of energy consumption per sector, per class and geographical set-up must be employed and statistical evaluation of meter readings will be in vain if electricity meters are not up to the standard accuracy. Energy consumption bands must result from the statistical evaluation to confirm anomalous meter readings. Upgrading of electricity meters to meet standard accuracy must be conducted to support reduction of non-technical losses thru statistical analysis.
4. Technical training of DU personnel must be given plus enhancing employees’ loyalty and political will to eliminate pilferage in the distribution system must be considered. DU personnel who play an important role in mitigating non-technical losses must have deep loyalty to the company and must have ample technical knowledge in combating electricity pilferage.

Power Quality Problems Always Exist

The Philippine Distribution Code (PDC) has Power Quality (PQ) performance regulation for Distribution Utilities. In Section 3.2 of the PDC, it provides generalities and specific limitations for quality regulation. I have copied section 3.2.1.2 from the PDC for the purpose of this article, see below.

In this section, the PDC points to the identification of a PQ problem in the distribution system by classifying presence of quality parameters. Going beyond this section are specified limits of the parameters stated above which clearly identifies the existence of a PQ problem. It is interesting that this PDC section identifies PQ problems where some of the classifications always exist in operating a distribution system. My rationale are the following:

• Power system frequency is seldom at its nominal value of 60 Hz. The continuous variation of loads impact the maintenance of frequency at 60 HZ. Item (a) of the said section implies that a PQ problem due to frequency deviation always exists.
• Harmonic frequencies always exist in distribution systems. The issue if these harmonics are acceptable or not is another facet. But voltage harmonics and current harmonics are always present in a power system due to the popular usage of electronic-based devices and equipment. Item (c) of the said section above implies that a PQ problem exist due to the presence of harmonic frequencies, whether tolerable or not.
• Items (c) and (d) of the said section are combined definitions for voltage unbalance. In a practical distribution system, voltage unbalance exist at all nodes due to the two-phase and single-phase laterals in the three-phase distribution feeder and unequal loading of the three-phase distribution lines. If this unbalance in voltage is acceptable of not is about the magnitude of the unbalance. If we follow the thesis of the said items, then a PQ problem exist even at acceptable levels of voltage unbalance.

The PDC definition for the existence of a PQ problem, with respect with the section above, gives us an understanding that a PQ problem exist not withstanding the magnitude of frequency deviations, harmonic frequencies and voltage unbalance magnitudes.

Less Transmission Capacity equals High Electricity Market Prices

Recent postings of Wholesale Electricity Spot Market (WESM) electricity spot prices showed remarkable increases due to the damage of one 600MVA 500kV/230kV transformer at San Jose substation in Bulacan. The damage 600MVA transformer is one of four 600MVA 500kV/230kV power transformers in the power substation. The San Jose 500kV substation delivers power generation from north side of the Luzon grid to the load center in Metro Manila, see figure below with San Jose substation inset. The “cheap” generation output in north of Luzon flows thru this transmission highway together with the 230kV in Central Luzon (Mexico and Concepcion substations). Technically, the 500kV lines along San Jose has greater capacity than the 230kV lines in Central Luzon. As a 600MVA transformer is being replaced, power transmission from upnorth of Luzon will be congested thus “cheap” power generation can not be availed in the load center.

As a result, the WESM prices soared. Figure below shows comparison between a Friday summer day with a Friday rainy day. Usually demand is higher during summer season than rainy season, which is given in the illustration. But the load weighted average price (LWAP) between the two days in comparison shows the impact of the damage transformer in the San Jose 500kV substation.

The interaction of the electric power system and the electricity market prices brings us into the following initial conclusions:

• Transmission system capacity is needed for competition of generation in an electricity market. Even if there is a good amount of margin between generation and demand without ample transmission capacity, electricity spot prices have no direction but to go up.
• A power system, like the Luzon grid, with a load center (Metro Manila) away from “cheap” generation will surely experience electricity market price spikes when transmission capacity is limited.
• The need for bilateral contracts for generation procurement plays an important part in a restructured power industry. To be hedged with high electricity market prices, energy buyers must lock into these contracts, considering stated conclusions above, to cushion their energy companies from impacting their financial standing.
• Demand side management, which has not taken its place in the Philippines, must be considered in an electricity market with a transmission system as described above. Peak shaving and other demand side resources will surely avert electricity price spikes by postponing usage of a congested transmission system.

Let’s leave this discussion for now with those initial conclusions. Bottomline is this, less transmission capacity equals high electricity market prices.

Regulating Continuing Education

The Institute of Integrated Electrical Engineers (IIEE) and the Borad of Electrical Engineering (BEE) of the Professional Regulation Commission (PRC) announced the return of Continuing Professional Education (CPE) effective January 2009. CPE units are requirements for renewing electrical engieering practice license.

CPE has been an issue among licensed electrical engineers and electricians in the Philippines for some reasons;

• It takes some time from their job
• It pays much
• No current local technical seminars advance what they learned in college or in practice

The certification of continuing professional growth is seen as business of IIEE by a significant majority of its members.

In the light of this issue, I am having second thoughts why CPE has to be back. With the frenzy of using the internet, there are a lot of free CPEs around the web. And not undermining the seminars that are offered at IIEE or at National Engineering Center (NEC), these free CPE on the world wide web are very practical.

The following are free CPE seminars that I find very effective and are updated frequently:

• Power System Engineering Research Center (PSERC) teleseminars
  
• Electrical Construction and Maintenance (ECM) webinars
  
• Pennsylvania, New Jersey, Maryland (PJM) Interconnection Training
• National Programme on Technology Enhanced Learning
• Transmission and Distribution World webinars
• Leonardo Energy webinars

These are only some of good sites to visit when needing CPE. More so, some engineers and electricians prefer personal education. These are people who continually read books or do their own research.

IIEE/BEE must recognize the changing dynamics of giving or requiring CPE among its members, the seminars they are currently offering has been there ever since I was a student. It would be a welcome development if IIEE/BEE will render, prepare or propose seminars on designing “green” electrical systems, energy-efficiency, electricity markets, power system planning and operation in a restructured electric industry or electricity delivery technical and economic regulation.