Technical losses on electricity distribution networks are an inherent part of energy transmission and distribution. Phil Beecher, president and CEO of global industry ecosystem, Wi-SUN Alliance, discusses the challenges and how to overcome technical and non-technical losses.
Industry figures estimate that around 10% of electricity is lost as it travels across transmission and distribution (T&D) networks to where it’s consumed. But just how much is lost varies from country to country.
The Energy Information Administration (EIA) estimates that annual electricity T&D losses averaged about 5% of the electricity used in the US in 2018 to 2022. In the UK, transmission losses were around 25 terawatt-hours, or approximately 8% of the electricity supplied in the UK in 2022, while in other parts of the world it can be higher.
The technical factor
Technical losses can be for different reasons, primarily due to electrical resistance in the transmission and distribution network, or transformer losses, or faulty switchgear.
But there are two main, but somewhat conflicting, scenarios when it comes to technical losses, not caused by faults. The first situation where a utility intentionally supplies overvoltage to ensure the minimum voltage is met at each premises. Then there’s the situation where distributed generation causes overvoltage, and active power curtailment is required.
We know these losses will never be completely eliminated, but there are strategies to reduce them. Usually, the cost and disruption of replacing large sections of T&D infrastructure is unrealistic and is unlikely to solve the problems anyway. However, adopting smart technologies as part of an existing distribution infrastructure is quite practical and can achieve significant benefits.
Upgrading to smart grid and advanced metering infrastructure (AMI) technologies, gives T&D operators better visibility and hence more control over their network, helping to reduce losses while optimising existing energy resources and improving grid resilience.
The human factor
Non-technical losses are usually more difficult to manage than the technical ones. Such losses typically are related to human factors, primarily theft through meter tampering or using unmetered electricity supplies – both small- and large-scale. Sometimes it can be down to issues like inaccurate meter readings or billing errors.
For energy suppliers, it can be costly, leading to significant revenue loss. Global figures from Northeast Group quote $101.2 billion lost every year due to non-technical losses. For utilities, recognising and addressing these losses quickly will minimise the impact on the bottom line, but also create a safer working environment where the supply can be disconnected and reconnected remotely, improving efficiency and reducing risks.
Until recently technical solutions to combat the issues of theft or damage have been limited. Traditionally, meter readers have had to visually inspect equipment to find evidence of tampering to achieve electricity theft, but with the rise of AMI, this can generally be done remotely. With the rise in theft on a much larger scale, this becomes more challenging, but the return is more significant
Take the growth in industrial-scale cannabis farming. Cannabis cultivation needs energy – lots of it. In fact, according to one economist at regulator Ofgem, up to one third of electricity stolen each year is used to power these farms. Putting it into perspective, the regulator estimates that cannabis farms consume around 12,000 kilowatt-hours (kWh) of electricity per month, 40 times greater than the average domestic consumption of 3,000 kWh per month.
There’s also the rise in cryptocurrency mining, which involves the use of powerful computers to 'mine' digital currencies such as Bitcoin. Identifying this sort of activity is problematic, as mining assets are often moved to areas with lower electricity prices. It’s easy to imagine that some may wish to avoid paying for the power at all!
The upshot is that with cannabis, cryptocurrency and a cost of living crisis, we’re seeing record levels of electricity theft in this country, with the BBC reporting that rates of such thefts had risen by 75% since 2012.
With these types of electricity theft happening on both a large and small scale, it means that the methods of detection are different and ways of resolving the issues also differ. Utility companies are now having to deal with serious illegal operations run by people that know how to tap into supplies on a potentially massive scale.
Smart meters typically incorporate anti-tamper sensors making it much harder for individuals to modify the meter, and advanced metering infrastructure technology enables electricity use to be monitored in real-time making detection quicker and more accurate.
By combining AMI with other smart technologies like advanced analytics, smart grids and grid sensing technology, utility companies can accurately measure and detect losses, both technical and non-technical, and protect their revenue.