Analysis of non technical losses in distribution networks, mitigation methods and costs

Abstract

Ceylon Electricity Board (CEB) is engaged in generation, transmission and distribution of electrical energy in Sri Lanka with support from Lanka Electricity Company Ltd (LECO) for distribution in certain areas and generation support from a number of private power plants. CEB is incurring huge commercial losses annually supplying electricity to 94% of households at a unit price lower than the actual unit cost. Minimizing losses in generation, transmission and distribution is of vital importance to any utility. Out of these losses, the distribution loss happens to be the larger component. Distribution system loss can be subdivided as Technical Loss (TL) and Non Technical Loss (NTL). The investment requirement for reducing TL is higher compared to the investment required of reducing NTL in distribution networks. This has drawn special attention for the NTL reduction programs in CEB. For devising and implementing suitable preventative and corrective actions of reducing NTL, it needs to be identified accurately. But identifying NTL is more difficult because no properly recorded information is available in many divisions in the CEB. The aim of this research is to study NTL in the distribution network to find mitigation measures through new technology and new systems. Causes of NTL are identified and quantified to the best possible accuracy and their impacts on NTL are discussed. Further, benefits of applying new technologies such as Aerial Bundled Conductors (ABC) and smart meters for mitigating NTL with cost benefit analysis is also included in this study. Legal framework of Sri Lanka was examined towards implementation the NTL reduction measures and some suggestions are made for future amendments to the Sri Lanka Electricity Act of 2009. In summary, out of the 11.24% system losses in 2012, 0.64% is generation loss, 2.02% is transmission loss and 8.59% is identified as distribution loss. This study indicates that on average the 10.06% of distribution loss of energy input to Distribution Division 4 in 2012 contains 3.92% of NTL component; further details of the composition of the NTL are discussed in this thesis.