A thesis submitted m partial fulfillment of the requirement for the degree of Master of Engineering

Thesis (M.Eng.) - Asian Institute of Technology, 1995

The level of power and energy generation in a power system can be reduced by reducing transmission and distribution losses in addition to the usual demand side options. The economic and environmental implications of transmission and distribution loss reduction on generation expansion plan of Power System of Pakistan have been discussed in this study. The implications of variable loss reduction has already been discussed in the literature. Besides variable loss reduction options, this study discusses the implications of no load or constant loss and mixed loss reduction options. The economic implications have been based on capital cost, cost of expansion plan, average cost and average incremental cost of electricity generation. The total cost of electricity generation and capital cost are important for the utilities point of view. Although average and incremental costs of electricity generation are important for the utilities point of view, these are more important for the consumers point of views. Because tariff structure is mainly based either on average cost of electricity supply or on the incremental cost of electricity supply or intermediary between average and incremental cost of electricity supply. It has been concluded from the study that a saving of 4.01 and 7.77 percent could be achieved by reducing variable losses by 3 and 6 percent. The variable loss reduction option is found to be preferable to a constant loss reduction option from economic point of view, if a given percentage of transmission and distribution loss is to be achieved. The environmental implications need not always decreases with the loss reduction. Moreover, the environmental implications are some time more for constant loss reduction and some time for variable loss reduction options. The implications by hydro electric power plants have only been slightly delayed with the opted loss reduction options for this study, while implications from thermal power plants have decreasing trend with loss reduction, but some time these implications have increasing trend in some particular form of emissions. In this study, the emission of carbon dioxide and nitrogen oxides decreases, while the emission of sulphur dioxide and particulates some time increases. In addition, all the fuel requirements for thermal generation need not always decreases with loss reduction as in the case of environmental emission. The fuel requirements for some of the fuels decreases while it increases with some other fuels. The fuel requirements for constant and variable loss reduction options, on the other hand, are also having no clear trend. These are some time more for constant loss reduction and some time more for variable loss reduction options.