Norman Grindley

A JPS technician works on power lines in this 2015 Gleaner file photo.

Power utility company Jamaica Public Service (JPS) has reassessed the cost of its smart metering programme, aimed at curtailing energy losses and possibly electricity theft, at US$52 million ($6.5 billion) to be spent over five years.

Concurrently, the JPS revealed that it conservatively estimates that 180,000 consumers are illegally connected to its grid. That number is equivalent to more than a third quarter of its customer base.

JPS previously told The Gleaner of plans to invest US$40 million over five years in smart meters. It upsized the plan in its latest annual tariff review submission to its regulator last week.

The utility plans to install 205,000 Smart Grid advanced meter infrastructure (AMI) units between 2016 and 2020 with an intended impact of 2.81 per cent reduction in losses.

“The average cost per customer is estimated at US$250 with a total investment of US$52 million for the planning period,” said JPS in its annual tariff review. It plans to spend US$6.8 million this year on residential AMI.

The Smart Grid AMI project involves the replacement of existing meters with smart meters for residential and small commercial or rate 20 customers. JPS would then install transformer meters and build out a “smart grid communication network” to support remote connectivity to these meters.

REVAMPED SOLUTION

“This revamped solution will revolutionise the way in which technology, human resources, systems, analytics and energy measurements are integrated towards realising both utility and customer expectations,” said JPS.

Over the last two years, the light and power company installed around 60,000 smart meters covering one-tenth of its 580,000 customers. All large commercial and industrial consumers, totalling around 5,000 accounts, were already on smart meters.

The JPS ultimately wants to reduce its system losses which hovers above 26 per cent, of which eight percentage points or 31 per cent are technical in nature. The bulk of its losses are due to theft.

“While theft through energy diversion continues to be a challenge, the evolution of smart grid technologies has brought about better ways to analyse and identify potential diversion in a more deliberate and sustainable way. Smart meters and grid devices provide the type of data that can be leveraged by back-office analytics and software techniques to detect theft and support the next steps of revenue protection prosecution and payment collection,” said JPS.

The utility estimates that around 180,000 households receive electricity illegally, but says the figure is likely higher. It said a comparison of its near 600,000 customer base with the estimated 800,000 households within the 2011 Census conducted by the Statistical Institute of Jamaica reveals a disparity.

“JPS’ Customer Information System indicates that over 200,000 households may be connected illegally to JPS’ grid. We recognise that a segment of the population resides in tenement housing facilities and therefore, we cannot say definitively, without further information, that all 200,000 households are illegally connected,” the power company said.

“Our conservative assessment indicates that there are approximately 180,000 illegal consumers.”

steven.jackson@gleanerjm.com

The Gleaner

Jamaica’s light and power company is spending up to US$40 million over five years to roll out a smart grid and cut line losses.

Last year, the Jamaica Public Service Company Limited (JPS) reported a one per cent decline in sales along with a one per cent increase in system losses – mostly electricity theft – which drained US$18.4 million in revenue from the company.

Now, Senior Vice-President, Energy Delivery, Technology and Innovation Gary Barrow says the company is spending US$6 million to US$8 million per year over a span of five years on technology upgrades.

That includes the installation of smart meters, which the company has been testing in select homes since at least 2012 under what was referred to as its Smart Grid Interface pilot, according to past reports.

Now, around one-tenth of customers have smart meters installed.

The last 24 months have seen the light and power company quietly acquiring and testing new equipment, pilot-testing new programmes, and doing “systems shakedowns” before large-scale rollouts, said Barrow.

Pivotal to this will be the implementation of the smart grid. This is already giving the company the ability to remotely fix power outages, reroute power, monitor usage, and to start tackling losses that gobble up as much as 26 per cent of the power it generates.

Barrow is downplaying the smart grid as a silver bullet, meaning it will not solve all the problems that drain revenue from the utility, but he said it would put JPS on the cutting edge of technology and within requirements of a modern electricity distribution system

“When you talk about a smart grid, it is really about putting more intelligence into the grid. It is where you start and where you end. That is how the technology is evolving. It is getting the data and using a lot of sophisticated analytical tools that translate that data into information for us,” Barrow said.

The system has distribution automation switches that allow JPS to pinpoint faults and reroute power. Coupled with that is an outage management system that automatically locates outages and manages real-time recovery. The centrepiece of the improvements, however, is the installation of smart meters.

Over the last two years, the light and power company has installed about 60,000 smart meters, which is just about 10 per cent of the 580,000 customers served by JPS.

Consumption Readings

Barrow notes, however, that 65 per cent of revenue comes from customers with smart meters. This is because 100 per cent of all large customers – numbering about 5,000 business – are on smart meters. In addition, they have sought to cover medium-sized businesses and other heavy users.

The commercial applications – commercial automated metering infrastructure, or CAMI – allow JPS to do readings of consumption at 15-minute intervals for all large commercial customers. This information is shared with clients.

JPS also uses MV90 software to analyse if there are any unusual consumption patterns.

The company has also tested and is installing meters on a secondary line of distribution transformers. On a practical level, what that means is that JPS attaches a meter to one leg of the average 220 voltage wires that feed a typical street. This allows JPS to get closer to its goal of reducing line losses.

Barrow says that when the system is fully rolled out, JPS will be able to pinpoint energy theft at the micro level.

“Before, we knew that an entire feeder was suffering from theft, but now, we are actually able to take it down to transformer level. So if only 25 customers are on that transformer and we know that … we are delivering more energy than what we have billed for, now we can pin-point with great granularity where the theft is happening,” the power executive said.

He says JPS is also totting up savings from the smart grid.

“In some areas where we had as much as 50 per cent theft of electricity, just putting in these meters and taking some other actions, we were able to bring that down to two to three per cent,” he told Wednesday Business.

Given those successes, JPS is preparing to go a step further, technologically speaking, with the planned roll-out of “Smarter Smart Meters”, which will allow customers to manage their energy consumption through remote control of the devices in their own homes.

That system is in the final stages of pilot-testing in the upscale Jacks Hill-Norbrook areas of Kingston.

Having committed to the smart grid investment, the monopoly power distributor appears wary of competition from renewable energy systems – possibly under net-metering/net-billing policies that allow persons to generate and sell electricity to the national grid – with Barrow noting the proliferation of photovoltaics, which harness solar energy.

He said what was required is a modernisation of regulations.

“This is a critical success factor or a critical point of failure. I can be talking about all of these things, and if the regulations don’t support it in a way that the business remains viable, then as a country, we will lose out,” he said.

 

The Gleaner