A research study submitted in partial fulfillment of the requirement for the degree of Master of Engineering, School of Environment, Resources and Development

Research Studies Project Report (M. Eng.) - Asian Institute of Technology, 1988

System expansion has become a popular means of achieving loss reduction in electric utilities. The more obvious option of (utility/consumer) system rehabilitation, which is cheaper to apply a nd generally has higher and quicker returns, is given less priority. This is mainly because of the inherent difficulties in system improvement works , namely , lack of in- depth knowledge of the system, technical incompetence, complications in execution, etc. A recent loss reduction exercise by the Ceylon Electricity Board , having resulted in expansion works of around Rs . 2 000 million (US$m 65), amply illustrates this situation. This study takes a rehabilitation approach considering the tea industry of Sri Lanka, the single largest consumer of electricity , as an example. After identifying a number of weaknesses in the planning methodology of the loss reduction exercise of CEB, it focusses on inefficiencies and losses in the tea industry. Subsequently , the effects of improvements in its installations on the utility , i.e. loss reduction, reduced demand , etc. , are analysed. Th e results suggest that improvements in consumer installations could b e even more beneficial to the utility than to consumers. Consumers attach less importance to electricity as its share is generally small compared too the inputs . Hence, concerted effort must be made by the utility to improve consumer installations b y implementing regulations, liaising with consumers , etc.