Future Role of Distribution Companies Deployment of Smart Systems. Dr. Sam Amadi Chairman/CEO

Transcription

1 NIGERIAN ELECTRICITY REGULATORY COMMISSION Future Role of Distribution Companies Deployment of Smart Systems Dr. Sam Amadi Chairman/CEO 6 th World Forum on Energy Regulation Tuesday, May 26, 2015 Istanbul - Turkey Electricity on Demand 1

2 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 Electricity on Demand 2

3 Power Sector Reform in Nigeria o 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) and transfer of PHCN assets to the new SCs; Establishment of the Sector Regulator (NERC), REA, NBET, NELMCO etc; The evolution of a market trading design and new rules such as MR, Codes, Regulations and Processes; Handing over, in August 2012, of TCN to a Private Management Company, (MHI). Privatization of the sector (New owners tookover on November 1, 2013). Electricity on Demand 3 3

4 UNBUNDLING OF POWER SECTOR IN NIGERIA Integrated Industry Vertical unbundling Industry Horizontal Unbundling PHCN Generation Companies Transmission Company of Nigeria 6 Gencos Transmission Company of Nigeria (TCN) Existing IPPs Distribution Companies 11 Discos Electricity on Demand 4

5 Electricity Trading Arrangement NIPP Plants (Geregu, Alaoji, etc.) Sellers PRIVATISED SUCCESSOR GENCOS Existing IPPs (Kainji, Shiroro, Egbin, Afam, Geregu,etc) Future IPPs The TSP PPAs WB PRG System Operator SPECIAL TRADER Nigerian electricity Bulk Trading Company plc Bilateral Contracts Market Operator Vesting Contracts Buyers DISTRIBUTION COMPANIES Abuja Benin Eko Enugu Ibadan Ikeja Jos Kaduna Kano Yola PHC Electricity on Demand 5 5

6 THE POWER SYSTEM IN NIGERIA 330kV 132kV 33kV 11kV 11 or 16kV 415V Gen GRID CODE 230V DISTRIBUTION CODE (Transmission Network) Electricity on Demand (Distribution Network) 6

7 Characteristics of a Typical Distribution System in Nigeria 11 Distribution Companies recently privatized and handed over to private owners on November 1 st, High Technical and Non-Tech. Losses (estimated at over 50%). 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. Electricity on Demand 7 7

8 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 8 Electricity on Demand

9 Information Communication Technology (ICT) Electricity on Demand 9

10 Information Evolution The evolution of the Information Technology from mainframes to powerful PC and 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 obtain the information on their specific business needs. Electricity on Demand 10

11 Information & Communication Technology as an enabler for Smart Power Distribution A robust Information & Communication Technology infrastructure will significantly boost the power distribution systems and contribute to reliable and quality supply of electricity to customers. Such infrastructure will offer a comprehensive solution encompassing the 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. Electricity on Demand 11

12 ICT Options Technology Option Advantages Disadvantages GSM/GPRS Existing GSM network could be used depending on availability and quality Solution is heavily dependent on the quality of network and its ability to provide seamless connectivity. GSM is thus extremely unreliable Local Area Networks LAN can be built on various technologies such as wireless, copper wiring, Fiber-Optic This is suitable only for localized needs such as a building or an office Power Line Communication Supports multiple uses such as transmitting power, data, radio signals Several technical problems are encountered as PLC uses same signals as that of radio frequencies resulting in interference. New Infrastructure requirements Fiber-optic Network Seamless connectivity, Extremely reliable and scalable, can handle transmission of huge volumes of data across the network, easy to integrate Initial Capital Cost is high New Infrastructure requirements Electricity on Demand 12

13 Gen Policy Makers Regulator Monitoring, Evaluation & Control Transmission Network Fiber Optic Network Central Database Distribution Network Commercial & Industrial Consumers Residential Consumers Automated Monitoring Systems Electricity on Demand 13

14 Importance of ICT For Smart Distribution Systems Quantitative and qualitative Data Acquisition, Monitoring and Control 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. Electricity on Demand 14

15 Smart Metering Smart Meters, are meters with secure bidirectional communications and remote reading capabilities which provides the base for more advanced functionalities. Electricity on Demand 15

16 Smart Metering Electricity on Demand 16

17 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 inflated billing efficiency and poor collection efficiency); Remote switching and Load Management; Customer control of budget and enhanced decision making. Electricity on Demand 17

18 Smart Metering functionalities Electricity on Demand 18

19 Smart Distribution Grid System Solutions Electricity on Demand 19

20 Smart Grid Solutions for the Electric Distribution System Facilities Operations Management Infrastructure Services Field WAN Communications Field to Enterprise Enterprise Products Integration Skill and Experience Electricity on Demand 20

21 Solutions Field to Enterprise Facilities WAN Field Communications Operations Management Infrastructure Services Enterprise 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 Electricity on Demand 21

22 Solutions Field to Enterprise Facilities WAN Field Communications Operations Management Infrastructure Services Enterprise 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 Electricity on Demand 22

23 Solutions Field to Enterprise Facilities Fibre Optic / WAN Field Communications Operations Management Infrastructure Services Enterprise Solutions - Security Advanced Security Strong Authentication Encrypted Data Physical Security Cyber Security Redundancy Robust Multi-layered Electricity on Demand 23

24 Solutions Field to Enterprise Facilities WAN Field Communications Operations Management Infrastructure Services Enterprise Solutions Asset Management Spatial Network Data Management Model Management (View/Query/Analysis) Desktop Mobile, Map Production Work Management Network Design, Cost Estimate, As-Built Management Mobile Workforce Management Operations Management Crew Management / Dispatch Electricity on Demand 24

25 Smart grid network introduces enhancements and improved capabilities to the conventional power network making it more complex and vulnerable to different types 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 business network. Physical security: Unlike the traditional power system, smart grid network includes many components and most of them are out of the utility s premises. Compromising communication equipment: An attacker may compromise some of the communication equipment such as multiplexers causing a direct damage or using it as a backdoor to launch future attacks. Injecting false information (Replay Attack): An attacker can send packets to inject false information in the network, such as wrong meter data, false prices, fake emergency event, etc. Fake information can have huge financial impact on the electricity markets. Etc. Security Problematic Some Security Attacks Electricity on Demand 25

26 1 Expected Gains of Smart Systems 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 Electricity on Demand 26

27 Conclusion Technologies exist for full smart Metering and Grid implementation but the high initial costs. High Capital Requirements may be an impediment but long term benefits outweigh the initial high costs. However, the Gains are immeasurable and unquantifiable. One of the major challenges is giving utilities regulatory incentives to implement smart systems allowing full recovery of Revenue Requirements arising from implementing smart systems. Regulatory disincentives still need to be overcome on a global basis. Electricity on Demand 27

28 Conclusion 2 Solution may be to set High Utility Efficiency Targets and Rewards - Set targets and/or rewards to utilities for energy efficiency, including through the use of a Smart Metering and Grid. Various Security Solutions have been developed to effectively and continuously address security challenges being faced by Users of Smart Distribution Systems. Distribution Companies should leverage on the advancement of smart systems and applications improve reliability, quality of service and Customer satisfaction. Electricity on Demand 28

29 THANK YOU Contact us at: Adamawa Plaza, Plot 1099 First Avenue, Off Shehu Shagari Way, Central Business District, Abuja Website: Electricity on Demand 29