Assessment of Energy Losses and Cost Implications in the Nigerian Distribution Network

Hachimenum N. Amadi^1, , Ephraim N.C. Okafor¹ and Fabian I. Izuegbunam¹

¹Department of Electrical & Electronic Engineering, Federal University of Technology, Owerri, Nigeria

Cite this paper

Hachimenum N. Amadi, Ephraim N.C. Okafor and Fabian I. Izuegbunam. Assessment of Energy Losses and Cost Implications in the Nigerian Distribution Network. American Journal of Electrical and Electronic Engineering. 2016; 4(5):123-130. doi: 10.12691/AJEEE-4-5-1

Abstract

Energy shortages is the major challenge facing the industrial sector in Nigeria. This paper assessed the energy shortages due to technical losses in the Nigerian distribution network and the cost implications. The study was carried out based on network data collected over the period 2011-2015 from three electricity distribution companies (DisCos) drawn from the three major industrial cities of Nigeria. These data were simulated on the Electrical Transient Analysis program (ETAP) Version 12.6. The calculated energy losses for these cities for the said period are 108,959.87 MWH, 149,256 MWH and 72,743.08 MWH respectively. The corresponding revenue losses are 2,434,164,012, 3,538,754,758.8 and 1,699,751,530.1 respectively. The paper suggested remedial measures to reduce energy losses, mitigate losses arising from unannounced electricity cuts as well as achieve a more efficient and reliable electricity distribution network. The outcome of this research provides a data bank for policy makers and future researchers in the areas of electricity generation, transmission and distribution.

Keywords

electricity failures, energy loss implication, energy shortages, Nigeria firms, power outages

Copyright

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References

[1]	Gbadebo, O.O & Okonkwo, C. Does Energy Consumption contribute to Economic Performance? Empirical Evidence from Nigeria. East-West Journal of Economics and Business. Vol.12 No. 2, 2009.
[2]	Odularu, O.O., & Okonwo, C. Does Energy Consumption Contribute to Economic Performance? Empirical Evidence from Nigeria. Journal of Economic and International Finance, Vol. 2 No.12, pp. 044-058, 2009.
[3]	Akinlo, A. E. Energy consumption and economic growth: evidence from 11 African Countries. Energy Economics, Vol.30, pp. 2391-2400, 2008.
[4]	Dantama, Y.U., Abdullahi Y.Z., I. Nasir. Energy Consumption - Economic Growth Nexus in Nigeria: An Empirical Assessment Based on ARDL Bound Test Approach. European Scientific Journal, Vol.8 No.12, pp.141-157, 2012.
[5]	Nwankwo, O.C. & Njogo, B.O. (2013). The Effect of Electricity Supply on Industrial Production within the Nigerian Economy (1970 – 2010). Journal of Energy Technologies and Policy, Vol. 3 No.4, pp.34-42, 2013.
[6]	Nigeria Power Baseline Report. Report developed by the Advisory Power Team, Office of the Vice President, Federal Government of Nigeria in conjunction with Power Africa, 2015.
[7]	Eberhard, A., Foster, V., Briceño-Garmendia, C., Ouedraogo, F., Camos, D. & Shkaratan, M. Underpowered: The State of the Power Sector in Sub-Saharan Africa. World Bank Africa Infrastructure Country Diagnostic, 2008.
[8]	Omonfoman, O. Electricity Distribution Companies – The Challenges and Way Forward. Available at http://opinion.premiumtimesng.com/2016/01/04/electricity-distribution-companies-the-challenges-and-way-forward-by-odion-omonfoman/. Premium Times, January 4, 2016.
[9]	Federal Republic of Nigeria, Ministry of Power, National Renewable Energy and Energy Efficiency Policy (NREEEP), Lagos, 20 April, 2015.
[10]	Amadi, H.N. & Okafor, E.N.C. The Effects of Technical and Non-Technical Losses on Power Outages in Nigeria. International Journal of Scientific and Engineering Research, 6 (9), Sept. 2015.
[11]	Mufutau, W.O., Jokojeje, R.A., Idowu, O.A., & Sodunke, M.A. Technical Power Losses Determination: Abeokuta, Ogun State, Nigeria Distribution Network as a Case Study. IOSR Journal of Electrical and Electronics Engineering (IOSR-JEEE). Vol. 10 No.6, Ver. I (Nov – Dec.), pp. 01-10, 2015.
[12]	Haque, R. Transmission Loss Allocation Using Artificial Neural Networks. MSc. Thesis. University of Saskatchewan, Saskatoon, Saskatchewan., 2006.
[13]	Omorogiuwa, E. & Elechi, P. Economic Effects of Technical and Non-Technical Losses in Nigeria Power Transmission System. IOSR Journal of Electrical and Electronics Engineering (IOSR-JEEE), Vol. 10 No.2, pp. 89-100, 2015.
[14]	Navani, J.P; Sharma, N.K.; & Sapra, S. Technical and Non-Technical Losses in Power System and Its Economic Consequence in Indian Economy. International Journal of Electronics and Computer Science Engineering. Vol.1 No.2, 2012.
[15]	Singh, T. Analysis of Non-Technical Losses and its Economic Consequences on Power System (A Case Study of Punjab State). Unpublished Thesis (MEng.). Thapar University, Patiala. 2009.
[16]	Uchendu, O.A. Economic Cost of Electricity Outages: Evidence from a Sample Study of Industrial and Commercial Firms in the Lagos of Nigeria. CBN Economic and Financial Review. Vol. 31 No.3, 1993.
[17]	Ukpong, I.I. The Economic Consequences of Electric Power Failures. The Nigerian Journal of Economic and Social Studies, Vol. 15 No.1, pp.53-74, 1973.
[18]	Nguyen, T.C., Bridle, R., & Wooders, P. A financially sustainable Power Sector: Developing assessment methodologies. The International Institute for Sustainable Development. March, 2014.
[19]	Elizalde, A. Key Drivers and Economic Impact of Non-Technical Losses in Distribution Power Systems: Experiences in Latin America. Banco Interamericano de Desarrollo (BID). November 4, 2012.
[20]	The World Bank. Reducing Technical and Non‐Technical Losses in the Power Sector. Background Paper for the World Bank Group Energy Sector Strategy, July, 2009.