[IEEE Smart Grid Newsletter] Global Experiences in Smart Metering – Tactical Loss Reduction in Developing Countries

Jul 20, 2021 | Article

Global Experiences in Smart Metering – Tactical Loss Reduction in Developing Countries

Published via the IEEE Smart Grid Newsletter – June 2021

Written by Aaron F. Snyder, Vadim Zheglov, and Michele Pastore

In the developing world, there is a wave of smart grid technology implementations driven by the desire to reduce “commercial” losses (another term for “non-technical” losses, or those not directly related to the power system infrastructure). Quite often, however, this use case is not part of an initial project architecture, conceptual model, or pilot, leaving in place a connected smart grid system (distribution automation or smart meters and advanced metering infrastructure) that either lacks the capacity or installed configuration to provide the necessary information. Then the option to “upgrade” that capability to meet that use case can be expensive in money or personnel.

One method to mitigate this sense of “buyer’s remorse” is to ensure the use case of “loss reduction” is part of the initial system architecture and specification. However, it is also possible to tactically add sensors to the grid to provide some screening information, then reinforce resources to handle the highest priority circuits, areas, etc., as a bridge toward a future full program.

Measurement and verification of electricity flowing in the grid is important for safety, protection of the infrastructure, and ensuring payment for consumption. From the safety standpoint, knowing whether a circuit is energized protects the public as well as utility and service provider personnel. Electric meters provide this via the display, which can be programmed to indicate phase connection and loss of power on a per phase basis. Reconciling the meter-based indicators that may include power outage and power restoration messages communicated to the utility with grid-based SCADA (supervisory control and data acquisition) equipment can validate the service status of each individual line in the system.

The infrastructure protection perspective is served by using the metering and SCADA equipment to determine the balance of energy in the system on a per-phase basis as well as provide information on potential over-current conditions. Balanced systems are more efficient as any imbalance contributes to higher losses in the transformers and degrades their service life. Knowing more precise current flows protects from overloading the transformers and conductors in normal conditions (no short circuits or faults) and are also useful to improve planning and operations where the actual conditions can be aligned with expected conditions and mitigation can be enacted. This generally is a method to reduce technical losses, or those related to the infrastructure itself.

One expectation of smart meters and advanced metering infrastructure (AMI) is that every customer’s consumption will be accurately measured leading to improved meter-to-cash performance of the system. However, the simple gathering of that information will not necessarily lead to improvement unless that is part of the initial program design. It is critical to ensure complete knowledge of the meter to circuit, circuit to transformer, and transformer to substation connections to perform even the simplest energy balance calculations. If the utility knows the amount of current in the circuit but not the number of meters and where they are tied to that circuit, there is little math that will uncover whether all the consumption is being measured and billed. When smart meters are placed into service it is necessary to identify the circuit, transformer, and substation so the energy balance calculations can be made. Where powerline carrier communications are used this may be simplified though with wireless communications for the meters this can also be done. If properly installed and operated, the measurements from the smart meters can then be used to disaggregate the technical and non-technical losses using simple to complex calculations, depending upon the level of information available from all of the measurement devices in the system.

Absent a full deployment of smart meters with customer-circuit-transformer-substation knowledge, it is possible to put into service check, or bellwether, meters at the “top”, “middle”, and “end” of each circuit as an initial starting point. Until each customer on the circuit has a smart meter, these meters can be used to align their measurements with the planning and operational expectations leading to identifying the overall magnitude of the losses. This is not a method to perfectly disaggregate the technical and non-technical losses but will improve on operating efficiency while leaving a foundation in place for future improvements. The “top” of the circuit meter can be left in place once every other meter has been put into place for the circuit in question, leading to a very rich dataset that leads to operational improvement.

An important element not often part of the smart meter program is ensuring the SCADA, check meter, and smart meter data is aligned with respect to time. Another common misconception is that having complete SCADA information about every substation will help identify non-technical losses. There must be enough measurements from the circuits to perform basic to complex energy balance and loss calculations – often only enough for technical losses is available.

A little extra work in the beginning of the smart meter program will yield results for non-technical loss identification and mitigation and improve the meter-to-cash cycle. This data also permits the utility to improve their planning and operations, improve the overall efficiency, and contribute to cost and rate management. Absent a full smart meter deployment, utilities should include two smart meters for every circuit in their programs as part of their safe, reliable, and financially sound promises to their customers and other stakeholders.

ABOUT THE AUTHORS

Aaron Snyder profile picture
Aaron F. Synder  As the Director of Grid Technology Consulting at EnerNex, Aaron works with many utility and vendor clients on metering, AMI, Smart Grid, and Grid Modernization projects, specializing in testing, metering, and consumer issues. In recent years he has been supporting Grid Modernization projects (AMI, DA, Microgrid, ADMS) in the USA, West Africa, North Africa, and the Middle East. His work has been to support the utility teams in all aspects of grid modernization strategy development, requirements, specification authoring, vendor interviews, procurement support (bidder evaluations), pre-deployment support, and pilot programs. He is a member of the GridWise Architecture Council, a Board member of the UCA International Users Group, and participates in standards development activities at national and international levels. He is a Senior Member of IEEE.

Vadim Zheglov profile picture
Vadim Zheglov Power Systems Senior Consultant, joined EnerNex in July 2010 as an intern and was hired to a full-time position upon completion in January 2011. Throughout his career, Vadim has performed numerous studies covering large variety of areas such as — electric power grid modernization, power quality issues in wind plants and other power systems, renewable generation integration in distribution systems, integration cost analysis, arc flash hazards, and others. He has conducted analytical studies of various power systems related projects, such as load flow, transient and harmonic studies using PSSE, PSLF, Matlab/Simulink, OpenDSS, CYME, EMTP-RV and various other simulation tools. Vadim also performs on-site field measurements on operating power systems ranging from solar and wind power plants to integrated backup power supplies and industrial facilities.

Michele Pastor profile picture
Michele Pastore is an experienced utility consulting professional with over 12 years of experience in the electric utility industry. He became Area Manager North America in 2015 specializing in Business Development, Power Markets, New technologies evaluation in the electrical sector, M&A, and Due Diligence. In 2018, Michele became Chief Business Strategy Officer of EnerNex with expertise in Strategy and company management, Business Development, integrate the companies’ commercial activities, consolidate the US technical capabilities and references within the CESI global services portfolio and Power Markets. His experience includes engineering, design and operations of renewable and traditional generating facilities including as well as transmission and distribution infrastructure. He has experience in USA, Italy, Jordan, Dubai, Ivory Coast and Wester Africa.
Smart Metering (SM) and Advanced Metering Infrastructure (AMI)

Smart Metering and AMI is a transformational process addressing multiple business and technical needs of the utility enterprise. This is more than just smart meters and communications networks; it includes all of the back end applications that can leverage the meter assets, such as outage notification, demand response, call center optimization, disputed billing process handling, pre-payment opportunities, and service connection management methods and procedures, to name a few.

Implementing SM and AMI faces the same business, engineering, and operational challenges as any other across-the-utility information technology endeavors – most notably risk associated with embracing proprietary technology, missing functionality and early obsolescence. Effective SM and AMI development, implementation, and operation relies on a marriage of electric power engineering with information technology expertise: a key component of EnerNex’s expertise and experience.

EnerNex provides an array of engineering and consulting services geared towards intelligent and effective implementation of SM and AMI. This covers all phases of project development, starting with capturing system requirements where our experts leverage a “Use Case” centric view of activities needed to be accomplished and their interaction with systems and other users. Subsequent project steps typically examine other critical areas, such as: modeling of business cases, building inter-department consensus, assembling and assessing system functional requirements and non-functional requirements, developing a system design, hardware and software specifications and standards, complete procurement services including RFI and RFQ process support, supplier rating system, response evaluation methodology, deployment management, and training of office and field personnel.

Demand Response (DR)

Demand response can be as simple as load interruption directed by the energy supplier in response to severe demand requirements, to complex customer defined load management in response to price signals. DR is one of the components of a “Non-Wires Alternative” that many utilities are effectively using to avoid expensive distribution fortification or upgrade.

 

Often the success and/or failure of demand response programs can be linked to program implementation challenges such as rate/tariff design rate structures communication (e.g. price signals) or ineffective incentives used by utilities to encourage customers to accept operational change. The issues of program design, rate structure and customer impact have a tremendous influence on the success or failure of load management initiatives. Demand response has traditionally been used as a tool of the energy industry to ensure system stability. However, the introduction of microelectronics, communications, home automation and the Internet of Things (IoT) has led to the development of cost effective solutions that have the capability to allow the consumer to take control of managing their energy load and ultimately, the price they pay for energy.

EnerNex has the experience and skills to turn your DR program into a successful operational asset and customer engagement process that can deliver value to all parties.

Energy Assurance Planning

Natural and man-made disasters cause an estimated $57B in average annual costs for all parties; large single events have resulted in losses of $100B or more. Events, such as the World Trade Center disaster, Hurricane Katrina, and most recently Hurricane Helene, have demonstrated an acute need to revisit, revise and implement an effective energy assurance plan. Energy assurance plans assess the functionality and interdependencies of buildings and infrastructure systems and the role they play in sustaining service and rapidly restoring critical services to a community following a hazard event.

 

EnerNex assists our clients in developing comprehensive energy assurance plans that mitigate and minimize the impact of energy disruptions. Our experts assess critical infrastructure risks and evaluate appropriate mitigation strategies and can help in developing an effective business continuity/disaster recovery (BC/DR) plan for utilities and your customers.

Microgrid Development

As the electric grid becomes more distributed and interactive, microgrids are playing an increasingly important role in our energy future. Decision makers at military bases, corporate and institutional campuses, residential communities and critical facilities across the world are exploring and implementing microgrids to meet economic, resiliency and environmental goals. Utility-grade microgrids are being deployed to meet transmission constraints, reliability requirements and safe-havens in the event of a significant storm event.

Microgrid_development Graphic steps to support grid modernization

Bringing together a portfolio of distributed energy resources into a controllable, islandable microgrid comes with its own set of challenges. The key to solving these challenges is in architecting a system to support information exchanges between components across well-defined points of interoperability (interfaces) in a technology independent manner. This interoperability ensures that the system is resilient to technology change. Modern systems engineering techniques must be employed to ensure that individual sub‐systems are clearly identified, their functions enumerated, their data requirements known, and the points of interoperability clearly specified, along with the commensurate monitoring, command and control that is needed to ensure grid stability. With such architecture, we can apply best of breed technology available today to support those information exchanges at interface boundaries but be free to upgrade / change the implementation technology later without causing a ripple effect throughout the system.

Enterprise Architecture

Enterprise Architecture focuses on aligning an organization’s business strategies with its anticipated, desired and planned technology enhancements. Enterprise Architecture provides a framework to cost-effectively transition from a current “as-is” technology to future enterprise-wide technological solutions. An effective Enterprise Architecture program aligns business investments with long-term business strategies while minimizing risk and providing superior technological solutions. EnerNex’s key asset is its highly skilled and experienced staff who are closely connected to both the smart grid and EA standards and practices. We provide clients with the insight necessary to operate a fully functioning smart grid, which is flexible, scalable, and vendor independent.

Grid Modernization Roadmap

Utility companies across the globe are continually modernizing their grid. Each company often has different rationales, objectives and priorities. Frequently, smart grid plans are developed for individual, incremental initiatives, rather than as a part of a whole, intelligent and interoperable infrastructure. Planning may be developed around technology choices rather than business and technical requirements. The result of incremental and flawed planning leads to increased cost and risk, lost opportunities, disconnected expectations and dead ends.

 

EnerNex’s approach to grid modernization roadmap development follows a proven, industry-standard approach to grid modernization planning by collaboratively working with the utility to develop a set of prioritized and time-phased grid modernization initiatives unique to its business strategy and objectives. The roadmap developed is holistic, requirements-based, business value driven and actionable. It often builds on and leverages existing applications and infrastructure, and incorporates industry standards to ensure interoperability, flexibility and reduced cost and risk.

Utility Communications

Utility communication and control systems are increasingly interconnected to each other and to public networks and as a result, they are becoming increasingly more susceptible to disruptions and cyber attacks. EnerNex has experience with the various issues relating to development, implementation and optimization including feasibility analysis, design, software development and customization, project management and acceptance. Our expertise extends from being involved in the development of the fundamental standards that support utility communication and automation, through deployment and securing of those resources. EnerNex personnel were heavily involved in development of such standards and protocols as IEC 61850, IEC 60870-5 and DNp3. Our staff played a key role in the EPRI Utility Communication Architecture (UCA) project and the IntelliGrid Architecture effort.

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