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Energy losses reduction strategy

Setting the right priorities for reducing its energy losses

Customer
Middle East distribution network operator

Challenge
The distribution network operator (DNO) was losing up to 20% of its procured energy in downstream processes. The national regulator required the DNO to reduce its losses drastically. Facing a yearly expanding the network by 10%, the operator had to set the right priorities.

Assignment
The DNO engaged DNV to draft a strategy for reducing energy losses to an acceptable and sustainable level. Our solution To get a good understanding of the customer’s improvement potential, DNV started with an assessment of the status quo. The assessment was based on a blue print for processes and metering systems containing international best practices. Customer’s representatives were interviewed and data was collected for detailed analyses and fact-based estimation of the size of the distribution losses. In order to meet the regulator’s targets on distribution losses, DNV determined the improvement potential for each source of losses in terms of feasible benefits, required investments, achievable planning and sustainability.

Benefits
Having a multitude of improvement options at hand it was possible to set out a strategic road map for meeting both the regulator’s targets for the upcoming 3 years, as well as implementing structural improvements for keeping future losses at sustainable and affordable levels. The customer was provided with a comprehensive and cohesive set of affordable and feasible, technical as well as non-technical, measures, enabling them to make the required decisions for a solid strategy.