future role of distribution companies deployment of smart ... · future role of distribution...

NIGERIAN ELECTRICITY REGULATORY COMMISSION

Future Role of Distribution Companies – Deployment of Smart Systems

Electricity on Demand 1

6th World Forum on Energy RegulationTuesday, May 26, 2015

Istanbul - Turkey

Dr. Sam AmadiChairman/CEO

OUTLINE• Introduction - Power Sector in Nigeria

– Power Sector Reform and Unbundling– Emerging Electricity Trading Arrangement– Power System Structure– Typical Distribution System

• Drivers for Smart Systems • The Role of ICT in Smart Distribution Systems• Smart Metering • Smart Distribution Grid System Solutions• Security Problematic• Expected Gains of Distribution Companies• Conclusion


Power Sector Reform in Nigeriao NEPP was approved in October 2000 thereby

paving way for the Reforms of the power sector.o In 2005, the EPSR Act 2005 was passed by the

National Assembly, which led to: Unbundling of the state owned power entity

(NEPA) into 18 Successor Companies (SCs) andtransfer of PHCN assets to the new SCs;

Establishment of the Sector Regulator (NERC),REA, NBET, NELMCO etc;

The evolution of a market trading design andnew rules such as MR, Codes, Regulations andProcesses;

Handing over, in August 2012, of TCN to aPrivate Management Company, (MHI).

Privatization of the sector (New owners took-over on November 1, 2013).

Electricity on Demand3 3

UNBUNDLING OF POWER SECTOR IN NIGERIA

PHCN

Generation Companies

Transmission Company of

Nigeria

Distribution Companies

Transmission Company of Nigeria (TCN)

Horizontal UnbundlingVertical unbundling Industry

Integrated Industry

6 Gencos

11 Discos

Existing IPPs


Electricity Trading Arrangement

Abuja Benin Eko Enugu Ibadan Ikeja Jos Kaduna Kano Yola PHC

Nigerian electricity Bulk Trading Company plc

PRIVATISED SUCCESSOR GENCOS(Kainji, Shiroro, Egbin, Afam, Geregu ,etc)

DISTRIBUTION COMPANIES

NIPP Plants(Geregu, Alaoji, etc.)

Future IPPs

SPECIAL TRADER

Vesting Contracts

BilateralContracts

PPAs – WB PRG

Sellers

Buyers

SystemOperator

Market Operator

The TSP

5

Existing IPPs


GRID CODE

DISTRIBUTION CODE

(Transmission Network)(Distribution Network)

Gen

132kV33kV

11kV

415V

330kV

11 or 16kV

230V

Electricity on Demand6

THE POWER SYSTEM IN NIGERIA


– 11 Distribution Companies recently privatized andhanded over to private owners on November 1st, 2013.

– High Technical and Non-Tech. Losses (estimated at over50%).

– High response time to technical failures.– Lack of systems for fault finding, trouble shooting and

monitoring– Low Billing and collection Efficiencies.– Low level of Metering (less than 50% penetration).– Poor and Aged distribution networks and equipment.– Low distribution capacities.– Poor maintenance culture.– Frequent power outages.– Poor data management – Lack of credible data.

7

Characteristics of a Typical Distribution System in Nigeria

Drivers for Smart Systems • Reduction of System Losses - Capture Lost Revenue, Tech/Commercial

Losses.• Efficient and more Flexible Distribution System Operations – Reliability

and Quality of Service.• Better Communication and Data Management.• Real Time Monitoring and Automatic Meter Reading (AMR), Time of Use

(ToU), Pre-payment etc.• Improve Energy Resource Management – Energy Efficiency and

Conservation.• Balance Operational Costs and Performance.• Improve Cash Collection.• Better Debt Management.• Reduction of Personnel Overhead Costs and errors in Human-Machine

Interface.• Improve overall Customer Satisfaction.• Corporate Governance – Improved Transparency and Prudence.

Electricity on Demand 8Electricity on Demand

Information Communication Technology (ICT)


Information Evolution

The evolution of the Information Technology from mainframes to powerful PCand the evolution of the Communication Technology from 2400 baud to powerful networks,offers a clear path for Distribution Companies to work towards improving their data to obtainthe information on their specific business needs.


Information & Communication Technology as an enabler for Smart Power Distribution

• A robust Information & Communication Technology infrastructure willsignificantly boost the power distribution systems and contribute toreliable and quality supply of electricity to customers.

• Such infrastructure will offer a comprehensive solution encompassingthe following activities:

– Monitoring and evaluating ATC&C Losses– Smart metering– Enhancing Customer Service– Enhancing Reliability and quality of power– Smart Distribution Management System (DMS)– Systems automation and integration– Embedded Generation / RE integration– Demand Side Management - Energy Conservation and Efficiency etc.

11Electricity on Demand

ICT OptionsTechnology Option Advantages DisadvantagesGSM/GPRS Existing GSM network could be

used depending on availability andquality

Solution is heavily dependent onthe quality of network and itsability to provide seamlessconnectivity. GSM is thusextremely unreliable

Local Area Networks LAN can be built on varioustechnologies such as wireless,copper wiring, Fiber-Optic

This is suitable only for localizedneeds such as a building or anoffice

Power Line Communication

Supports multiple uses such astransmitting power, data, radiosignals

Several technical problems areencountered as PLC uses samesignals as that of radio frequenciesresulting in interference.New Infrastructure requirements

Fiber-optic Network Seamless connectivity,Extremely reliable and scalable, canhandle transmission of hugevolumes of data across thenetwork, easy to integrate

Initial Capital Cost is highNew Infrastructure requirements


Commercial & Industrial Consumers

Automated Monitoring Systems

Regulator Monitoring, Evaluation & Control

Policy Makers

Central Database


Transmission Network

Distribution Network

Residential Consumers

Fiber Optic Network

Gen

Importance of ICT For Smart Distribution Systems

• Quantitative and qualitative Data Acquisition, Monitoring andControl of power systems using SCADA.

• Optimizes asset management, utilization and operating efficiency.• Monitoring of Aggregate Technical, Commercial & Collection losses

(ATC&C).• Trouble shooting mechanism through real-time fault/failure

detection.• Evaluation of benchmarks, targets set & achieved by distribution

licensees.• Sensing and detection of electrical faults and failures.• Communication between plants, substations and monitoring

entities (EMS).• Provision for data services and other Government backed,

communication based education programs.• Eases Policy and Regulatory Overview etc.


Smart Metering


Smart Meters, are meters with secure bi-directional communications and remotereading capabilities which provides thebase for more advanced functionalities.

Smart Metering


Some Drivers for Smart Metering• Anti-theft of electricity and surveillance

capability;• Energy accounting and Loss control;• Bad debt recovery management;• Remote collection of real-time data for billing

and analysis on demand and on schedule;• Guaranteed cash flow through popular PPM

functionality (solving the problems of inflatedbilling efficiency and poor collection efficiency);

• Remote switching and Load Management;• Customer control of budget and enhanced

decision making. Electricity on Demand 17

Smart Metering functionalities


Smart Distribution Grid System Solutions


Field to Enterprise

Facilities

WAN

Smart Grid Solutions for the Electric Distribution System

Products IntegrationSkill and

Experience

Field Communications

Operations Management Infrastructure

Services

Enterprise


Solutions “Field to Enterprise”

Facilities

WAN

CommunicationsField Infrastructure Services

EnterpriseOperations Management

Solutions

Automatic Meter Reading

Substation Integration & Automation

Outage Detection

Load & Feeder Management

Relay Failure Monitoring

Equipment Condition Monitoring

Voltage Reduction & Cap Bank Control

RTU Retrofits


WAN


Facilities



Solutions

Load Forecasting Fault Management & Service Restoration Reliability Analysis Training Simulation Thermal Monitoring Volt/VAR Control Switching Order Management Load Management Performance Monitoring Relay Protection


Solutions - Security Advanced Security

Strong Authentication Encrypted DataPhysical SecurityCyber Security

Redundancy RobustMulti-layered

Fibre Optic / WAN


Facilities




Solutions Asset Management

Spatial Network Data ManagementModel Management (View/Query/Analysis)Desktop Mobile, Map Production

Work ManagementNetwork Design, Cost Estimate, As-Built

Management Mobile Workforce Management

Operations ManagementCrew Management / Dispatch

WAN


Facilities




Smart grid network introduces enhancements and improved capabilities to theconventional power network making it more complex and vulnerable to differenttypes of attacks:• Malware spreading: An attacker can develop malware and spread it to infect

smart meters or company servers.• Access through database links: Control systems record their activities in a

database on the control system network then mirror the logs into the businessnetwork.

• Physical security: Unlike the traditional power system, smart grid network includesmany components and most of them are out of the utility’s premises.

• Compromising communication equipment: An attacker may compromise some ofthe communication equipment such as multiplexers causing a direct damage orusing it as a backdoor to launch future attacks.

• Injecting false information (Replay Attack): An attacker can send packets to injectfalse information in the network, such as wrong meter data, false prices, fakeemergency event, etc. Fake information can have huge financial impact on theelectricity markets.

• Etc.Electricity on Demand 25

Security Problematic – Some Security Attacks

Expected Gains of Smart Systems


1

• Improved Management of Distribution Systems - Remote Online Real Time Monitoring , Operations & Control

• Availability of Credible Data• Human and Distribution system Capacity Improvement

2

• Power Availability Improvement• Reliability Improvement• Quality of Service Improvement• Customer Satisfaction

3

• Increased Revenues for the Electricity Market• Better Distribution System Security• Energy Efficiency and Demand Side Management• High end connectivity for Regulator’s offices/Sub-stations to go

beyond big cities• Improved communication between Government to Citizens

Conclusion• Technologies exist for full smart Metering and Grid

implementation but the high initial costs.

• High Capital Requirements may be an impediment butlong term benefits outweigh the initial high costs.However, the Gains are immeasurable andunquantifiable.

• One of the major challenges is giving utilities regulatoryincentives to implement smart systems allowing fullrecovery of Revenue Requirements arising fromimplementing smart systems. Regulatory disincentivesstill need to be overcome on a global basis.


Conclusion 2• Solution may be to set High Utility Efficiency Targets and

Rewards - Set targets and/or rewards to utilities forenergy efficiency, including through the use of a SmartMetering and Grid.

• Various Security Solutions have been developed toeffectively and continuously address security challengesbeing faced by Users of Smart Distribution Systems.

• Distribution Companies should leverage on theadvancement of smart systems and applications improvereliability, quality of service and Customer satisfaction.


Contact us at: Adamawa Plaza, Plot 1099 First Avenue,

Off Shehu Shagari Way, Central Business District,

Abuja

THANK YOU

Website: www.nercng.orgE-mail: [email protected]


http://www.nercng.org/

mailto:[email protected]

future role of distribution companies deployment of smart ... · future role of distribution...

Documents