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Theft / Loss Detection Solutionsfor Smart Grids

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Not much has changed in the power industry or has it? ....................................... 3

What is the size of the problem that Smart Grids address? ..................................... 4

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Introduction

The right time to consider Smart Grids

....................................................... 5Power theft, revenue protection and Smart Grids

........................................................................ 5Key benefits of Smart Grid adoption

.................................................. 6Picking the Smart Partner for Smart Grid solutions

........................................................................................................ 6The inevitable solution

Conten

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Material science and engineering have made it possible to transmit power across geographies and time zones. But power companies are unable to fully leverage the develop-ment due to challenges posed by power theft from transmis-sion and distribution lines spread across very large geogra-phies. In addition, revenue protection has become a major concern. Revenue leakages as a result of poor, inefficient or tampered meters and gaps in revenue collection are key areas that power companies must address in order to stay competitive. The solution lies in the deployment of Smart Grids that provide a high degree of real-time visibility, control and responsiveness to activity on the grid. Smart Grids are empowering utility companies to examine and optimize their systems and benefit from higher efficiencies, system resilience, reliability and environmental sustainability.

In real terms, not much has changed since Thomas Alva Edison designed his power supply system and the first power station went live in New York in 1882 serving 193 buildings. One of the biggest concerns over power transmission was power loss. The first major change in transmission addressing power loss came when Nicola Tesla designed a generator for alternate current (AC). AC can deliver power efficiently over long distances with stepped up voltage for transmission over the grid and then stepped down to safer levels for end use. However, AC did not end the problem of power loss and it continues to be a major concern, more than a century after Edison’s invention.

In some ways, power transmission has not evolved as rapidly as telephony (1876, earlier than the first power plant) 1 or automobile design (first practical gas engine 1860, even earlier than the telephone)

Introduction Not much has changed in the power industry…or has it?

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What is the size of the prob-lem that Smart Grids address? Technical Losses

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As a consequence, power systems are under tremendous stress from system constraints, even as appliances and devices that rely on power are becoming more sophisticated. Because of the geographic spread power companies find it difficult and expensive to monitor and maintain their systems, improve grid efficiency or address the challenges of the 21st Century where consumers are becoming more demanding and want better services at lowered costs. Power theft – which is preventable – continues to be amongst the most serious challenges that the industry is confronted with.

However, one of the biggest changes to sweep the power industry is the concept of Smart Grids. A Smart Grid delivers electricity from suppliers to consumers using two-way digital technology allowing higher efficiency, flexibility and resilience against failure or attacks to the grid

A report from the Department of Energy's Pacific Northwest National Laboratory (PNNL) says that a smart electric grid could reduce carbon emissions from the utility industry by 12 percent and reduce usage by the same amount. As an example, if Smart Grid benefits were fully realized in the United States 442 million metric tons of carbon emissions could be saved. This amount is equal to permanently closing 66 average coal-fired plants.

The US Department of Energy says that the characteristics of a smart grid include :

According to the latest figures the U.S. loses roughly 300 billion kWh of power from transmission and distribution (T&D) loss. 4 In India, of the total investment of Rs 810,000 crore in the power sector during the 11th Plan, over Rs 270,000 crore may be lost if T&D losses are not immediately addressed. 5 The table on `Top 10 Countries with T&D Power Loss’ (below) shows the problem is not limited by geography of economic maturity. It is a pervasive, global problem.

At the core is underinvestment in T&D loss mitigation. While power systems are difficult to replace, companies have to think of ways to protect revenue, improve efficiency, be prepared for devices in the future and addresses issues centered around the environment.

What T&D loss does not capture is the gap between billing and collections and the non-realization of payments. After power theft, the other key area of performance improve-ment is revenue protection through smarter systems for metering, billing, higher responsiveness to leakages and credit collection. Power theft inevitably results in a burden transferred to the consumer through higher tariffs. And with greater system transparency on its way, consumers will soon show displeasure with their power vendors.

Aggregated Technical and Commercial Loss (AT&C) – that is, the difference between energy inputs into the grid and units for which payment is collected -- can be broken up into two components:

Self-healing from power disturbance eventsEnabling active participation by consumers in demand responseOperating resiliently against physical and cyber attackProviding power quality for 21st Century needsAccommodating all generation and storage optionsEnabling new products, services, and marketsOptimizing assets and operating efficiently

Overloading of existing power lines and other equipmentLack of equipment up grades Poor repair and maintenance of equipments

Main reasons for Commercial Losses Non-metering, low metering and billing, collection (in) efficiency, billing cycle leakages, fraudTheft via illegal connections through tapping before the meterUnder performing or non-performing meters and tamper-ing of metering system Low accountability of field staff

Top 10 Countries with T&D Power Loss

Country Year 2004 (million kWh) Year 1994 (million kWh)

United States 265,180,000,000 240,796,000,000

India 175,535,000,000 69,568,000,000

China 138,957,000,000 59,607,000,000

Russia 112,591,000,000 85,446,000,000

Brazil 65,273,000,000 42,015,000,000

Japan 48,862,000,000 44,465,000,000

Canada 39,256,000,000 36,599,000,000

Mexico 35,501,000,000 20,483,000,000

Germany 34,185,000,000 22,918,000,000

France 32,100,000,000 26,269,000,000

Source: NationMaster.com

The right time to considerSmart Grids

Power theft, revenue protec-tion and Smart Grids

Key benefits of Smart Gridadoption

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Power theft is a global reality, not necessarily restricted to poor nations. Techniques to pilfer power are crude in devel-oping economies and sophisticated in developed economies. Often, power companies observe spikes in demand at time periods when consumption should be low. Consumer meters do not reflect this increased demand. Clearly, power is being stolen between the distribution node and the meter. Efforts to locate theft haven’t been successful due to lack of moni-toring and recording systems and real-time alarms. Devious consumers also use elaborate methods to avoid paying bills by vacating premises just before the billing cycle.

Smart Grids that are equipped with sensors across the distribution system and have two-way communication capability can help address and mitigate power theft and enable revenue protection. The low cost sensors and Advanced Metering Infrastructure (AMI), networked across existing communication channels – cellular networks, RF, WiMAX and the Internet – are the key tools to manage a widespread problem plaguing the power industry. Smart Grids enable accurate and real-time monitoring of the system, allowing for quick response to theft and billing leakages.

The existence of and benefits accruing from a Smart Grid go beyond managing theft and protecting revenue. With increas-ingly demanding customers, Smart Grids enable better rates, flexible products, and reinforce competitiveness through better consumer choices such as real-time pricing, pool pricing, demand-based metering, time-of-day pricing and seasonal pricing. They can enable the consumer to make better choices by providing visibility to energy consumption behavior and energy consumption comparisons with desig-nated groups motivating improvements in consumption. Additionally, Smart Grid technology can enable automated metering, power outage notifications to the consumer and provide insights into the quality of power thus empowering a consumer to make better choices and driving competitive-ness.

From a provider perspective, the need is to improve revenue collection, identify system anomalies to reduce losses, improve throughput, and enhance revenue through better storage and integration between traditional and renewable

Global demand for energy is expected to increase by 49 per cent from the levels of 2007 to 2035 6 according to a study of the US Energy Information Administration. Much of this growth will be met through improvements in transmission technology and materials. AC power lines can now extend over 2,500 km and DC lines over three times that distance. The potential to distribute power across geographies and time zones – and create new business models by leveraging differences in peak and seasonal demand – is very real. How-ever, the threat from power theft, the inability to protect revenue leakage, the task of meeting local compliance standards, grid security and real-time responsiveness to disasters are significant barriers. Smart Grid technology can overcome these barriers by providing digital tools and processes that allow for a high degree of granularity in data accessibility and system control.

Smart Grids provide intelligent distribution and transmission, real-time monitoring and visualization techniques, analysis, intelligent metering infrastructure and intelligent asset management through automation and higher granularity of data. Energy markets of the future will demand an unprec-edented level of transparency and transferring cost of theft and other inefficiencies to consumers will result in loss of competitiveness.

Gartner analyst Zarco Sumic says, “The smart grid is a vision of a future electricity delivery infrastructure that makes use of advances in information, operational, communication and energy technologies to improve system use and resilience, empower consumers, and address energy sustainability concerns.”

Current Grid Smart Grid

Electromechanical

Minimal one way communication (metering)

Digital

Linear

Two way communication – improves asset management (remote monitoring, data collection, load control, rapid response to theft and revenue threats)

Reactive, physical repair

Networked (increased information and intelligence)

Poor monitoring and response to power theftand leakages

Pro-active, self healing

Visibility to grid breach and abuse, rapid responseto transmission loss

Lack of insight into consumer usageNo or low tolerance to attacks

Monitor consumer usage: total, peak, minimumand time-of-day usage

Lack of consumer-friendlyoptions

Resilient and robust

Mexico

Empowers consumers with choice of options

High environmental impact Lowered environmental impact

sources of energy that power companies are now required to produce. Smart Grids are the recommended route to enable these requirements.

There are two immediate gains from Smart Grid adoption. Consumers will not challenge rate changes as a cover up for theft. And Smart Grids are the natural path to sustainable and “green” practices without large-scale changes to the system.

The key to building a roadmap for successful deployment of Smart Grid technologies is the choice of the solutions integra-tor. Vendors like Wipro who have end-to-end dedicated Smart Grid domain expertise, a dedicated Service Oriented Architecture practice and bring global best practices along with strategic product and service alliances are well positioned to create the right solutions.

Additionally, the process of Smart Grid adoption can be made considerably smoother by your implementation partner. A partner like Wipro who has dedicated Smart Grid domain expertise, the appropriate technical alliances for integration (GE, Tibco, Oracle, etc) and a dedicated Service Oriented Architecture practice is best suited to manage the integration.

The inevitable solution

Picking the Smart Partner for Smart Grid solutions

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With increased competitiveness and lowered margins, the key to success in the energy business is through sustain-able practices that increase efficiency, lower losses, and meet customer demands for transparency and product choice. Clearly, reducing theft and improving revenue collection are critical factors in enabling business success. In addition, the energy industry needs to reduce organiza-tional exposure to compliance related risk.

The objectives of the energy company of the future can be met through the monitoring, analysis and control capabilities of the Smart Grid. While adapting to future needs such as flexible pricing and the ability to integrate multiple sources of energy are inevitable, the real benefits will accrue through the ability to optimize power consumption and improve distribution.

Sources: 1. http://en.wikipedia.org/wiki/Alexander_Graham_Bell2. http://www.ausbcomp.com/~bbott/cars/carhist.htm3. http://www.oe.energy.gov/smartgrid.htm4.Smart Grid News: http://www.smartgridnews.com/artman/publish/Delivery_Transmission_News/New-Effort-Looking-at-Ways-to-Reduce-T-D-Loss-and-Save-Power-1362.html5. ASSOCHAM, Eco Pulse, June 2007, “Study on Mounting T&D losses”, Jyoti Bhutani6. International Energy Outlook 2010 – Highlights: http://www.eia.doe.gov/oiaf/ieo/highlights.html7. Hyper Cycle for Smart Grid Technologies, 2010

Premise EquipmentAdvanced Metering SystemCommunications BackboneData ManagementBusiness IntelligenceInfrastructure IntegrationGIS Mapping and Network Modeling

Smart Grid Adoption

Theft mitigation

Costs may be difficult to transfer to consumer

Revenue protection through monitoring and better metering

Climate Change

Prestige issue: Lack of admission tothe problem of power theftLack of standards and commonprotocols

Governmental regulatory pressure

Grid transparency (what is being consumed by whom and how much)

Low understanding or lack of clarityin Smart Grid technology

Reliability (avoid outages)

Consumer privacy concerns

Flexible offerings through consumer-friendly options (pool pricing, demand-based pricing, time-of-use pricing, etc)

Drivers Inhibitors

Solutions for Smart Grid encompass:

CONSULTING | SYSTEM INTEGRATION | OUTSOURCING

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