Nepal Energy Efficiency Programme (NEEP -III) - Loss reduction in power distribution systems

2024-05-27

Funding Agency: GIZ
Client: Nepal Electricity Authority
Date: December 2018 – November 2020 

Nepal Energy Efficiency Programme (NEEP-III) - Loss reduction in power distribution systems concentrates on the “strengthening the capabilities of the Nepal Electricity Authority (NEA) in managing power supply and demand” in the distribution sector at both, supply and demand-side and complemented by CD measures addressing NEA as well as end-users. The Supply Side Management (SSM) includes the 66/33/11kV substations, the 11 kV feeder lines and 11kV/415V distribution transformers including equipment, lines, meters and capacitors. Consequently, this assignment deals with technical and accompanying Capacity Development (CD) measures only.

The project is based on the following pillars: Data collection and interpretation: Analysis of main bottlenecks and their importance with respect to overall performance; Pilot Projects: Based on contemporary best practices, eight relevant pilot projects are proposed, in a select substation area, to demonstrate respective impacts on technology adoption, loss reduction, information management and reliability reporting, eventually bringing out wider replication scope/lessons, capacity building; Monitoring system: Establishing of a data monitoring system to continuously provide actual data to adjust system performance; Capacity Development(CD) measures: Implementation of Capacity Development (CD) measures in both Supply Side Management (SSM) (NEA) and Demand Side Management (DSM) (End users) to enable the NEA staff “being able to independently develop solutions for challenges arising” in future and to improve knowledge at the end-user side and to raise awareness of end consumers of energy efficiency. Recommendation Catalogue: Contributing to the preparation of a recommendation catalogue.

Overall Services provided:

The consultants deliver services in the following areas of intervention:

  1. Intervention area 1: Supply-side interventions focusing on reducing technical losses in the distribution system

Ø Conduct a comprehensive technical loss analysis based on the following activities :

(i)      Digital mapping of the grid infrastructure based on GIS data for a selected network section;

(ii)    Performance of a detailed load flow analysis in selected distribution network section (chosen in accordance with NEA);

(iii)   Carrying out of energy audits at different system levels (chosen in accordance with NEA);

(iv)   Assistance in the introduction of IT-enabled solutions for improved energy accounting (“smart metering”) within the supply infrastructure.

Ø Design and implement selected pilot projects (suitable for subsequent up-scaling) in accordance with NEA. The provisional list of pilot projects is to be reviewed regularly by NEA and GIZ and to be adjusted accordingly if deemed necessary.

Ø Based on the abovementioned measures as well as findings provides technical and process-related advisory services on the design and implementation of a digital monitoring system with the objective to monitor the supply infrastructure in the distribution system. The monitoring system is required to provide remote data access, specifically ensuring data access from all relevant NEA departments.

Ø The preceding analyses will serve as an input for the formulation of concrete recommendations to NEA on how to improve the system’s power factor and reduce technical losses within the distribution system as part of a comprehensive ‘recommendation catalogue’. Results from the interventions detailed in (i)-(iv) as well as selected pilot projects will thereby constitute essential inputs. Mandatory components of the ‘recommendation catalogue’ are suggestions on (1) required technology equipment including corresponding technology specifications for quality assurance, (2) enabling policy framework conditions and necessary regulatory changes and (3) strategies for the up-scale of pilot projects and other supportive measures (e.g. undertaken to determine technical losses in the distribution grid with an extended geographic scope).

2. Intervention area 2: Demand-side interventions focusing on closing existing information gaps and inefficiencies in energy accounting and billing

Ø Conduct a comprehensive analysis on existing information gaps at the consumer-level and identify measures to improve the collection, coordination and dissemination of information with the objective to improve data access and optimize energy accounting and billing procedures based on:

  • Conducting of load surveys and future trend analysis (e.g. expected demand growth, peak load projections, etc.) for selected customer segments (e.g. residential, commercial, agricultural and industrial customers);
  • Updating of existing consumer databases, tariff structures and selected load profiles (e.g. for residential, commercial, agricultural and industrial customers) including modeling of future load curves and consumer indexing (based on load surveys and GIS mapping undertaken in intervention area 1);
  • Analysis of current metering and billing procedures for different customer types and formulation of suggestions for improved metering and billing (also considering kVA billing/power factor penalties);
  • Development and formulation of DSM strategies for promulgation to consumers.

Ø Design and implement selected pilot projects (suitable for subsequent up-scaling) in accordance with NEA. The provisional list of pilot projects is to be reviewed regularly by NEA and GIZ and to be adjusted accordingly if deemed necessary.

Ø Based on the abovementioned measures as well as findings, provide technical and process-related advisory services on the design and implementation of a digital information system detailing selected consumption patterns. The information system is required to provide remote data access, specifically ensuring data access from all relevant NEA departments.

Ø The preceding analyses will serve as an input for the formulation of concrete recommendations to NEA on how to close existing information gaps on the customer level, improve metering of electricity usage and reform electricity billing procedures as part of a comprehensive ‘recommendation catalogue’. Results from the interventions detailed in (i)-(iv) as well as selected pilot projects will thereby constitute essential inputs. Mandatory components of the ‘recommendation catalogue’ are suggestions on (1) required technology equipment including corresponding technology specifications for quality assurance (e.g. for ‘smart’ or improved meters), (2) enabling policy framework conditions and necessary regulatory changes, and (3) strategies for the up-scale of pilot projects and other supportive measures (e.g. undertaken to close information gaps and improve metering and billing procedures with an extended geographic scope).

3. Intervention area 3: 

Ø Capacity development and institutional support to NEA

Intervention area 3 is sub-divided into measures pertaining to (1) capacity development and (2) the provision of institutional support

Capacity Building

Ø Determination of priority learning areas within NEA based on a thorough skills assessment for all intervention areas (i.e. supply-side, demand-side, awareness, and knowledge management) and consequent identification of learning goals.

Ø Design and realization of coaching and (on-the-job) training based on identified learning needs including activities increasing exposure of NEA staff. This includes the organization and implementation of two regional study tours for middle management (one of which is to be carried out in India) as well as one study tour to Germany targeted at the top management of NEA as well as representatives of the MoEn (and other implementing partners if required).

Institutional Support:

Ø Performance of an organizational analysis to understand the role and responsibilities of the newly established Department of Energy Efficiency and Loss Reduction. This analysis will serve as a basis for the formulation of suggestions to the management of NEA how the department can best achieve its goals and objectives on all intervention areas and overcome potential barriers. The outcome document for this activity should further include concise communication and decision support strategies.

Ø Analysis of current coordination procedures/practices and formulation of suggestions for improved coordination between Energy Efficiency & Loss Reduction Department and other NEA directorates.

4. Intervention area 4: Awareness raising on consumer-level and overall knowledge management

Ø Support NEA in designing three awareness-raising campaigns/measures targeting the reduction of energy demand by end-users for three different focal areas. This includes the provision of evidence-based advisory services on the most promising behavioral changes or technology options to focus on.

Ø Assist NEA in the creation and introduction of a comprehensive online ‘Consumer Information Platform for EE appliances’. This should entail specific input on the platform’s content as well as recommendations on an effective marketing strategy to ensure rapid uptake and dissemination of the platform.

Ø Assist NEA in establishing a comprehensive knowledge management system on demand-side and supply-side measures for the reduction of system losses and increases in energy efficiency that establishes strong and frequent feedback loops between the intervention areas 1 to 4 during project duration, thereby aiming to institutionalize an effective organization-wide knowledge exchange culture.

Ø Provide advisory services on effective and lean structures, routines, and responsibilities for result documentation. This incorporates assistance in the design of a Monitoring & Evaluation Platform/Tool and suggestions for ensuring its uptake within the organization.