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CDM in Reduction in Transmission and Distribution Losses
CDM in Reduction in Transmission and Distribution Losses
CDM in Reduction in Transmission and Distribution Losses
CDM in Reduction in Transmission and Distribution Losses
CDM in Reduction in Transmission and Distribution Losses
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CDM in Reduction in Transmission and Distribution Losses

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In India, average T & D (Transmission & Distribution) losses; have been officially indicated as …

In India, average T & D (Transmission & Distribution) losses; have been officially indicated as
26 percent of the electricity generated. There is immense potential to improve the supply side
energy efficiency by minimizing the transmission and distribution loss at its distribution network.
This paper focuses mainly on carbon credit generation potential of T&D loss reduction projects
in India.

Published in: Business, Technology
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  • Excellent information about Transmission and Distribution Losses. Really I am proud of you. Because you create most important article for me.
    Thanks
    Steven Hooper
    “Engine and Transmission World”
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  • 1. Reduction in Transmission and Distribution Losses, An opportunity for earning carbon credits 1 Mr. Krishan Kumar Kapil Abstract In India, average T & D (Transmission & Distribution) losses; have been officially indicated as 26 percent of the electricity generated. There is immense potential to improve the supply side energy efficiency by minimizing the transmission and distribution loss at its distribution network. This paper focuses mainly on carbon credit generation potential of T&D loss reduction projects in India. Background: Around the Globe, Transmission and Distribution Losses constitute a very high percentage in the supply of generated electrical Energy. India is far from the global standards of T&D losses which are about 5-10 per cent. According to World Resources Institute (WRI), India’s electricity grid has the highest transmission and distribution losses in the world (26%). (Source: http://www.nationmaster.com/graph/ene_ele_pow_tra_and_dis_los_of_out-power-transmission-distribution-losses- output&date=2004) As per the latest data available, 12 states and union territories had their T&D losses in excess of 30 per cent in 2004-05. Assam tops the list losing more than half of the electricity generated (51 per cent). National capital, Delhi is the next biggest loser with 45 per cent, followed by Rajasthan, Madhya Pradesh, Jammu and Kashmir and Bihar with 45 per cent, 41 per cent, 40 per cent and 39 per cent respectively. Puducherry, Jharkhand and Tamil Nadu have been able to keep their transmission and distribution losses below 20 per cent at 18 per cent, 18 per cent and 19 per cent respectively. Reasons for high technical losses As per TERI, The major reasons for high technical losses in India are:  Inadequate investment on transmission and distribution, particularly in sub-transmission and distribution. While the desired investment ratio between generation and T&D should be 1:1, during the period 1956 -97 it decreased to 1:0.45. Low investment has resulted in overloading of the distribution system without commensurate strengthening and augmentation.  Haphazard growths of sub-transmission and distribution system with the short-term objective of extension of power supply to new areas.  Large scale rural electrification through long 11kV and LT lines.  Too many stages of transformations.  Improper load management.  Inadequate reactive compensation  Poor quality of equipment used in agricultural pumping in rural areas, cooler air- conditioners and industrial loads in urban areas. Components of T&D losses As per TERI, Energy losses occur in the process of supplying electricity to consumers due to technical and commercial losses. The technical losses are due to energy dissipated in the conductors and equipment used for transmission, transformation, sub- transmission and distribution of power. These technical losses are inherent in a system and can be reduced to an 1 Business Consultant-CDM, Enzen Global
  • 2. optimum level. The losses can be further sub grouped depending upon the stage of power transformation & transmission system as Transmission Losses (400kV/220kV/132kV/66kV), as Sub transmission losses (33kV /11kV) and Distribution losses (11kV/0.4kv). The commercial losses are caused by pilferage, defective meters, and errors in meter reading and in estimating unmetered supply of energy. CDM Opportunities in distribution network The United Nation for Climate Change Convention (UNFCCC), the apex body for CDM projects, has developed two baseline and monitoring methodologies under which the T&D loss reduction projects can be applied for CDM. They are  AMS IIA: Supply side energy efficiency improvements transmission and distribution  AM0067: Methodology for installation of energy efficient transformers in a power distribution grid According to these methodologies, the implementation of EE measures for T&D loss reduction can include:  Up-grading the voltage on a transmission/distribution system  Replacing existing transformers with more efficient transformers (e.g., replacement of a silicon steel core transformer with an amorphous metal transformer)  Increasing the amount of pipe insulation in a district heating system. The technologies or measures may be applied to an existing transmission or distribution systems or be part of an expansion of a transmission/distribution system. For any project to be considered for CDM, it has to fall under the applicability condition of above two methodologies only. However, Project proponents are encouraged to propose a new set of guidelines and baseline methodologies for considering other similar kind of projects under CDM. CDM project status in distribution network At present, only two such projects have been implemented and applied for generation of carbon credits. The details are given as below: Host Project Title Reductions Country Supply side energy efficiency improvement by implementing Power India 44,521 Interface Units in Northern India Supply side energy efficiency improvement project implemented by India 3,923 KDHP, at Munnar, Kerala state, India (Source: http://cdm.unfccc.int/Projects/Validation/index.html) At present, Enzen Global is also involved in development and registration of one such project involving implementation of energy efficiency measures in the distribution network of Coimbature Municipal Corporation. The contract for implementation of EE measure has been awarded to an ESCO (Salzer Electronics Limited, Coimbature). Enzen Global Environment Practice team is providing advisory services for development, registration, issuance of carbon credits (CERs) and marketing of CERS for the project.
  • 3. Other similar Energy efficiency projects in distribution network Host Project Title Reductions Country Karnataka CDM Photovoltaic Lighting Programme India 20,328 Visakhapatnam (India) OSRAM CFL distribution CDM Project India 48,850 Yamunanagar & Sonipat (India) OSRAM CFL distribution CDM India 48,539 Project Replacement of incandescent bulbs with CFLs in households in India 50,556 Kadapa Circle, Andhra Pradesh, India Chhattisgarh Lighting Improvement Project ( CLIP) in Rajnandgoan India 48,008 Circle, Chhattisgarh, India Pune (India) OSRAM CFL distribution CDM Project India 29,988 Rwanda Electrogaz Compact Fluorescent Lamp (CFL) distribution Rwanda 18,578 Project Republic Bucheon(Korea) Fawoo technology LED application CDM project 226 of Korea Orissa Lighting Energy Efficiency Project (OLEEP) in Aska India 18,692 Division, Ganjam District, Orissa,India Orissa Lighting Energy Efficiency Project (OLEEP) in Baripada India 18,705 Circle, Mayurbhanj District, Orissa, India Uttar Pradesh Lighting Energy Efficiency Project (ULEEP) in India 19,589 Circles I & II of Varanasi, Zone, UttarPradesh, India Orissa Lighting Energy Efficiency Project (OLEEP) in Nuapada & India 17,339 Kalahandi District, Orissa, India Uttar Pradesh Lighting Energy Efficiency Project (ULEEP) in Cess India 19,363 Divisions of L.E.S.A. Lucknow Zone, Uttar Pradesh, India Orissa Lighting Energy Efficiency Project (OLEEP) in Bhadrak India 20,188 Circle, Bhadrak District, Orissa,India Orissa Lighting Energy Efficiency Project (OLEEP) in Digapahandi India 11,229 Division, Ganjam District,Orissa, India Orissa Lighting Energy Efficiency Project (OLEEP) in Bolangir & India 16,370 Titilagarh Divisions, Orissa, India Orissa Lighting Energy Efficiency Project (OLEEP) in Bhanjanagar India 17,045 Circle, Orissa, India Orissa Lighting Energy Efficiency Project (OLEEP) in Bargarh & India 12,028 Bargarh West Divisions, Orissa,India Case Study 1: Supply side energy efficiency improvement by implementing Power Interface Units in Northern India ACME Tele Power Ltd. (ATPL) is a leading Telecom Power Solutions provider in India. Power Interface Unit (PIU) is one of the innovative products developed by ATPL. The project activity aims to improve the supply side energy efficiency of an electricity distribution system by use of energy efficient PIU. Installation of PIU at various sites results in minimal use of grid power/diesel generator (DG) sets which helps in the reduction of GHG emission. It is proposed that by implementation of PIU, a total Annual net energy savings of 59,362 MWh can be achieved, resulting in annual CER generation of 44,521 tCO2e per annum. It is estimated that by sale of carbon credits, an additional revenue of 44.74 Million INR per annum will be generated which will substantially improve the project financials.
  • 4. Case Study 2: Supply side energy efficiency improvement project implemented by KDHP, at Munnar, Kerala state, India The Kanan Devan Hills Plantations Company Pvt. Ltd. (Herein after referred as KDHP) a successor of TATA Tea Ltd. is engaged in the business of manufacturing branded tea. Apart from its core business of tea manufacture, KDHP also supplies electricity to its residential, commercial and industrial consumers in the Munnar region. To minimize the losses in its distribution system, KDHP has replaced the existing copper conductor with new ACSR (Aluminium Conductor Steel Reinforced) in their Distribution Lines. Project involves re-conduct ring on total transmission and distribution line of 170 Km after identifying areas which yield more transmission - distribution loss. The project is expected to achieve an annual net energy savings of 4,615 MWh, resulting in annual CER generation of 3,923 tCO2e per annum. The expected CDM revenue for the project is anticipated to be approximately 3.94 Million INR per annum. Case Study 3: Orissa Lighting Energy Efficiency Project (OLEEP) in Bargarh & Bargarh West Divisions, Orissa, India Purpose of this project is to distribute Compact Florescent Lamps (CFLs), at a price equivalent to that of incandescent lamp (ICL), to consumers in rural divisions of WESCO ( Western Electricity Supply Company of Orissa) , in Bargarh & Bargarh West Divisions, Orissa, India . This project targets to discount & distribute approximately 198,000 CFLs to the registered consumers of WESCO. The CFL would be distributed in exchange of a less energy efficient (i.e. higher wattage, equivalent luminosity) Incandescent Lamps (ICL). Orissa is part of the NEWNE (Northern, Eastern Western, and North-Eastern) regional grid in India, which has CO2 emission factor of 0.801 tCOe/MWh, and transmission and distribution losses of 40.00% (for Burla Circle to whom these divisions belong). Thus, all the energy saved by using CFLs, will lead to significant reduction of CO2 being emitted at the site of power generation. The project would lead to an overall estimated 84,197 tCO2e of emission reduction over a period of 7 years. The expected CDM revenue for the project is anticipated to be approximately 84.62 Million INR. Project risk and CDM revenue influence The implementation of the energy efficiency measures in distribution network has various barriers associated to it. The key barriers for such projects are: 1. High cost of distribution of electricity. 2. The technologically less advanced alternative is well established in the market and involves lower risks due to the performance certainty. However, many EE measure introduced are for the first time in the market and have lower market share. Thus also entail higher uncertainties in performance However, the additional CDM revenue will substantially help in mitigating the risk involved due to failure of project and loss of revenue involved in the project activity. Also CDM funds will provide the additional help for development and promotion of GHG abatement and energy efficient technologies Conclusion: Considering India present generation capacity of 698,918 Gwh in the year 2007-08 of which 132,320 Gwh are generated from fossil fueled based power plants (Source: CEA). Assuming a net
  • 5. reduction of 10% in T&D losses can be achievable by implementing energy efficiency measure in the distribution network. The implementation of such measures will lead to an additional power surplus of 13,232 Gwh per year. The present CO2 emission level of the regional gird, as estimated by Central Electivity Authority (CEA) is 0.81tCO2e/Mwh. Therefore, the Reduction in T&D losses provides an opportunity for net carbon emission reduction of 10.7 Million CO2e per annum in India, providing a carbon market of over 6.4 Billion INR.

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