By Satish Saini, HEXstream utilities industry specialist  

Energy transmission and distribution losses cripple power systems, limit the financial health and performance of utilities, and harm the larger economy. As such, it is critical that we adopt stricter regulatory compliance and standardized methodologies and procedures for detecting, monitoring, analyzing and reporting T&D losses. 

Few would argue with this.  

In addition to addressing the problems listed above, greater compliance and standardization practices improve the accuracy, transparency and comparability of T&D loss data, which leads to smarter, more accurate strategies to mitigate loss and boost efficiency. 

So how do we get there? Here find some strategies: 

• Standardize it! Consistent and accurate measurement of T&D losses using standardized methods ensures that all utilities calculate losses using the same definitions and methodologies, which prevents discrepancies in monitoring, analyzing and reporting of losses and ensures that data is reliable and comparable across different utilities or regions. This includes technology-driven solutions and infrastructure. Critical here is a focus on data sources, extraction and analytics components developed with minimal human intervention or manipulation, which creates errors and inconsistencies. Data that comes directly from the source is better data (no offense, humans). 
• Reporting must follow suit. Regulatory compliance on uniform reporting and benchmarking of data sources, formats, frequency and targets is essential for consistency, identifying best practices, setting realistic loss-reduction targets, and promoting transparency related to industry and regulatory standards.
• Using carrots and sticks. Incentives and penalties for loss reduction through regulations provide utilities motivation to improve their network efficiency and performance, set accountabilities, and ensure that utilities are actively engaged in minimizing T&D losses.
• Bring in outside auditors. Regulatory compliance for third party energy audit and verification creates unbiased assessments to ensure that loss-data collection, analysis and reporting procedures are consistent, accurate, transparent and credible. Solution providers with the right set of expertise can fill this role as an outside auditor. 
• Mandate it! Standardization and regulatory mandates toward T&D loss detection/reduction ensure that utilities’ grid-modernization investments are aligned with industry best practices and regulatory expectations (think smart grids, advanced metering infrastructure and IoT-based solutions).

Everyone benefits from more accurate loss detection and greater loss mitigation, from the transmission center all the way down to the end user. The strategies outlined above empower us to make huge gains when it comes to energy losses. 

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