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    The document discusses strategies for reducing energy losses at UMEME, Uganda's largest electricity distribution company. It outlines that losses come from both technical issues, like aging infrastructure, and non-technical issues like theft. UMEME's strategies include creating accountability, profiling losses, metering improvements, targeted initiatives, and stakeholder engagement. Technical strategies focus on network upgrades. Commercial strategies include customer segmentation, appropriate initiatives for different groups, and clear metrics. The challenges to sustaining low losses are also discussed, such as infrastructure maintenance costs, theft culture, and balancing energy flows with improved metering and infrastructure.

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    The document discusses strategies for reducing energy losses at UMEME, Uganda's largest electricity distribution company. It outlines that losses come from both technical issues, like aging infrastructure, and non-technical issues like theft. UMEME's strategies include creating accountability, profiling losses, metering improvements, targeted initiatives, and stakeholder engagement. Technical strategies focus on network upgrades. Commercial strategies include customer segmentation, appropriate initiatives for different groups, and clear metrics. The challenges to sustaining low losses are also discussed, such as infrastructure maintenance costs, theft culture, and balancing energy flows with improved metering and infrastructure.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    112 views21 pages

    Robert Mubiru

    Uploaded by

    nabyll9008
    The document discusses strategies for reducing energy losses at UMEME, Uganda's largest electricity distribution company. It outlines that losses come from both technical issues, like aging infrastructure, and non-technical issues like theft. UMEME's strategies include creating accountability, profiling losses, metering improvements, targeted initiatives, and stakeholder engagement. Technical strategies focus on network upgrades. Commercial strategies include customer segmentation, appropriate initiatives for different groups, and clear metrics. The challenges to sustaining low losses are also discussed, such as infrastructure maintenance costs, theft culture, and balancing energy flows with improved metering and infrastructure.

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    of 21

    EFFECTIVE AND SUSTAINED ENERGY

    LOSS REDUCTION STRATEGIES


    ROBERT F. B. MUBIRU
    AMR PROJECT MANAGER, UMEME LTD
     Largest distribution
    company in Uganda
     Operates a 20 year
    Concession via a
    single-buyer model
     Distributes 99% of the
    electricity up to 33kV
     Cross-listed on two
    stock exchanges
    (Kenya, Uganda)
     Professionally
    Regulated Energy
    Sector
    Energy Loss = [Dispatch – Sales] (GWh)
    Two categories:

    Technical Non–Technical
    Energy Loss . . . ?
    Technical: Non–Technical:
     A factor of network  Theft . . .
    component (bottom line)
    characteristics  Intervention to defraud
    (Cable, Txs, etc) utility revenues
     Mainly economic impacts  Has moral, economic &
     Optimisation of Network political connotations
    Configuration  Not as costly to address
     Relatively Costly to  Requires broad
    address spectrum commitment
     Cannot be eliminated  Can be eliminated
    UMEME Loss Reduction Strategy
    1. Create Accountability Mechanisms :
    (Administration)
    TransparentReward Mechanisms
    Business Unit Model (local accountability & knowledge)

    2. Clarify Losses Profile (2012 Study):


    Commercial – 17%,
    Technical – 6%

    3. Clarify Energy Balancing (Boundary Metering):


    4. Implement Focused Initiatives :
    Technical
    Loss Reduction
    Commercial Loss Reduction

    5. Continuous Stakeholder Engagement:


    EXTERNAL INFLUENCERS – Political, Social, Industry,
    INTERNAL – Staff, Management and Board
    COMMERCIAL LOSS REDUCTION STRATEGY
    1. Segmentation of Customer Groups

    2. Focussed Appropriate Initiatives:


    o Mass market initiatives
    o Large Power User

    3. Clear Responsibility and Accountability for Results

    4. Initiatives Clear Measures

    5. Analysis – Fact Informing Initiatives


    CUSTOMER SEGMENTATION

    Energy Profile (June-2015)


    No. of Av Sales Sales
    Tariff Category A/cs (%)
    Contracts (GWh) Cont (%)
    1 ph – Post Paid 385,330 32,2
    98% 26%
    1 ph – Prepaid 294,394 20,1
    3ph (Whole current) 11,300 19,0
    3ph (CT Connected) 2,339 32,0 2% 74%
    3ph (MU connected) 500 96,7
    Total 693,863 200,1
    Avg Monthly Dispatch: 255GWh, Loss: 18.0% as at July’15
    Mass Market Commercial Loss Strategy
    1. Domestic
    Characteristics / Impact:
     Account for: Sales – 29%, Revenue – 33%
     Large Numbers, Endemic Theft Culture (hooking)
     Low Individual Consumption, Low Earnings, Low Returns
     Poor Networks: Quality
    Approach
     Refurbish Networks (Inject Txs, Short LV spans, etc)
     Retrofit LV networks with ABC
     Roll Out Prepayment (1-phase & 3-phase up to 100A)
    LPU Commercial Loss Strategy
    2. Industrial & Commercial
    Characteristics / Impact
     Account for: Sales – 71%, Revenue – 67%
     Non-Standard, Low Quality Installations
     Established Revenue Streams BUT High Theft Incentive
     Have: “A name to protect”

    Approach “Secure: High Value Customer Revenues”


     Install AMR / AMI Systems
     Install Pre–wired SMART Meter boxes
     Closer Engagement: RM, DM, Customer Service Engineer
    TECHNICAL LOSS REDUCTION STRATEGY
    1. Disaggregation of Technical and Commercial
    Losses

    2. Identification / Prioritisation of High Loss Feeders

    3. Scoping & Packaging of Initiatives


    o MV Backbone Strengthening
    o Distribution Transformer Zone Upgrade and Strengthening
    o LV Reticulation Refurbishment and Strengthening

    4. Monitoring and Evaluation of Implementation


    Results
    A HOLISTIC APPROACH . . !
    NETWORK REFRUB + REDESIGN

    PRE – PAYMENT SOLUTION

    METER
    INSTALLATIONS
    Loss Target vs. Performance

    35.0%

    30.0%

    25.0%

    20.0%

    15.0%

    10.0%
    2010 2011 2012 2013 2014 2015 2016 2017 2018
    Reg Tgt 32.0% 28.0% 25.5% 23.2% 20.7% 18.6% 17.0% 16.0% 15.0%
    Actual Perf 30.0% 27.0% 26.1% 24.3% 21.3% 19.2%
    The Challenge . . .
    Challenges to Sustaining Acceptable Loss Levels

    Technical
    1. Growth – the I2R problem
    2. Maintenance – budget vs. prudent practice
    3. High Cost of reduction
    4. Aged Networks
    5. Optimisation of Networks
    o Appropriate Voltages
    o Future demand and growth forecast
    Challenges to Sustaining Acceptable Loss Levels
    Commercial
    1. Metering Installation Security
    2. Power Theft Culture - Affordability perceptions
    o Utility Staff Collusion
    o Customer Actions
    o Illegal Operators

    3. Energy Balancing Support infrastructure


    4. Metering Philosophies
    5. The ‘Theft Incentive’
    o LPU
    o Mass Market
    Tz Power Loss Trajectories
    Kenya Power Loss Trajectories
    Current Loss Position

    Kenya: 18.0%

    Tanzania: 22.0%

    Uganda: 23.1% (Umeme – 19.1%)

    Rwanda: 23.0%
    ASPIRATION . . . !

    Cyprus: 4.0%

    Egypt: 11.0%

    Kazakhstan: 8.0%

    Paraguay: 6.0%
    Proposals

    1. Factor in MV, LV Maintenance costs – prudent practice


    2. Commitment to execute Tech Loss Reduction
    3. Clear Measures to pro-actively track Losses
    4. Direct Line Accountability for Loss Reduction
    5. Clear Visibility of Energy Flows – Metering, Tech/Com
    6. Continuous Analysis
    7. Period Review and Alignment of Strategies
    8. Appropriate Application of Technology

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