BE MY STUDENT IN EEE433

BY
Engr. UWUIGBE O. Emmanuel
2019/2020
1.0 INTRODUCTION
Hello, my name is Engr. Uwuigbe O. Emmanuel. Welcome to “Be My Student in EEE433:
“Energy Generation, Distribution and Utilization”. Did you notice that something is missing
from the course title? Ofcourse!, there is no “transmission”. The correct sequence is generation,
transmission, distribution and then utilization. Anyway, do not worry! Transmission is covered
in a separate course, “EEE531: Energy Transmission“and when we get to that river, we will
cross it.
For your present level, I am going to take you on a fun filled trip in certain electrical principles in
EEE433. Now, saddle your horse and let us begin.
1.1 COURSE CONTENT
I have broken this entire tour into the outline shown below.

EEE433: ENERGY GENERATION DISTRIBUTION & UTILIZATION (3 CREDITS)

GENERATION STATIONS: Advantages, disadvantages, schematic diagram and component
parts of Hydro-electric power station; Steam power plants; Gas power station, Nuclear power
plants. Siting of power stations. Comparison between power stations. Economic dispatch.
ELECTRICAL LOAD: Load forecast, effect of variable loads on power stations, load curves,
spinning reserve, connected load, maximum demand, demand factor, average load, load factor,
diversity factor, plant capacity factor, plant use factor, load duration curve. Load types: domestic,
commercial, industrial, municipal, irrigation and traction loads. Interconnected generating
stations, advantages of interconnected systems. ECONOMICS OF POWER GENERATION:
cost of electrical energy, fixed cost, running cost, depreciation. TARIFFS: types of tariff,
features of a good tariff, calculations. POWER FACTOR, power angle, cause of low power
factor, disadvantages, power factor improvement, static capacitors, synchronous condenser,
phase advancers, calculations. The Nigerian power grid UTILIZATION: Electric Heating,
Electric Welding, Electrolytic Process. DISTRIBUTION SYSTEMS: feeders, distributors,
service mains. Classification of distribution systems, overhead versus underground system, radial
connection, ring main system, interconnected system. DC Distribution: 2-wire system, 3-wire
system, distributor fed at one, both ends, fed at the center, ring distributor, current distribution in
3-wire dc system, boosters, ground detectors. AC Distribution: voltage drops in ac system,4-wire
star connected unbalanced load, unbalanced delta connected load, unbalanced 3-wire Y-
connected load, calculations.

THE NIGERIAN POWER GRID

I want to believe that this course has been interesting and you have learnt a lot about the basics
of power generation. You know that electrical energy can hardly be stored in bulk; hence it must
be put to use to save cost due to wastage. However, the site of electric power generation is
usually several kilometres from where the bulk of the consumers are. For instance, in Nigeria,

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the hydropower plant in Kainji in Niger State generates part of the electric power that is used all
over the country. You can imagine how far away Kainji dam is from Uniben in Edo State! The
processes involved in conveying power from Kianji to Uniben is called transmission and
distribution. By definition:
Electric power transmission is the bulk movement of electrical energy from a generating site,
such as a power plant, to an electrical substation. The interconnected lines which facilitate this
movement are known as a transmission network.
In Nigeria, the transmission network is commonly referred to as the National Grid. The
schematic and layout are shown in the pictures below.

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 Fig. 1: Schematic of the National Grid

At the transmission substations, the electric power is transformed to lower voltage at a fixed
frequency of 50Hz. For some other countries, 60Hz is used. After the transformation, the power
is further transmitted or distributed.
In Nigeria, transmission starts at the generating stations and ends at injection substations.
Electric energy is generated at about 6.6kV or higher and then stepped up to 330kV usually at the
site of generation. The 330kV is the voltage level for our transmission grid which is commonly
referred to as “National Grid” as shown in Fig.1 above. This is the first tier of transmission or
primary transmission and energy is carried on conductors and towers.

Fig.2: Transmission Towers.

At transmission stations usually several kilometres away from the generating stations, the
voltage is stepped down to 132kV and then further transmitted to secondary substations where it
is further stepped down to 33kV. Feeder lines at 33kV are radiated from the secondary substation
and used to feed injection substations. At the injection substations, the energy is further stepped
down to 11kV and distributed through “11kV feeders” to consumers who utilize energy at this
voltage level. For other consumers, it is conveyed to “mini-substations” where it is stepped down
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once more to 415V and distributed on 3-phase, 4-wire overhead systems along streets and roads
to various consumers. This is the general voltage level for most consumers in Nigeria. The 240V
used by the appliances in the home is actually a single phase (line-to-neutral) equivalent of the
415V.
Exercise: (i) why is it not stupid to generate electrical energy at 6.6kV, step up to 330kV and
then start stepping it down again? (ii) What are the voltage levels of the Nigerian power system
from generating station to your father’s house?
Transmission system is covered in details in another course, “Be my Student in EEE531”. Our
focus here is distribution systems and utilisation.

STAKEHOLDERS IN THE NIGERIA POWER SECTOR

NERC
The Nigerian Electricity Regulatory Commission (NERC) is an independent body, established by
the Electric Power Sector Reform (EPSR) Act of 2005 to undertake technical and economic
regulation of the Nigerian Electricity Supply Industry (NESI). NERC, though independent, is
owned by the Federal Republic of Nigeria.

ROLE OF NERC
The role of the Commission includes but not limited to:
1. Licensing of operators,
2. Determining operating codes and standards,
3. Establishing customer rights and obligations and
4. Setting of cost reflective industry tariffs.

The Commission has its headquarters in Abuja, and has currently six zonal offices in the six
geopolitical zones of the country. Since inception, NERC has recorded significant achievements
including the expansion of capacity and network by the issuance of licenses for electricity
generation, transmission and distribution, as well as the development of industry codes and
standards, market rules and a multi-year tariff order. In addition, the Commission has issued
various regulations and orders that have created an attractive and stable electricity market in
Nigeria. These achievements have been made possible by ensuring that market transactions are
rule based and regulatory interventions are preceded by robust consultative and stakeholder
engagement processes to ensure transparency, fairness and accountability.

These qualities of transparency, fairness and accountability are critical to NERC as an

independent regulator. The EPSR Act was thorough in ensuring this independence.

NBET
The Nigerian Bulk Electricity Trading (NBET) Plc. is the manager and administrator of the
electricity pool in the Nigerian electricity supply industry (NESI). It was incorporated on the 29th
day of July 2010 and is 100% owned by the Federal Government of Nigeria.
NBET purchases electricity from the Generating Companies through Power Purchase
Agreements (PPAs) and sells to the Distribution Companies through Vesting Contracts. The
Generating Companies include the privatized PHCN successor companies, the Niger Delta
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Power Holding Companies (NIPPs), the already existing Independent Power Producers (IPPs)
and the new IPPs.
ROLE OF NBET
1. Management and administration of the financial flows for the physical supplies on the
network.
2. Operation of a competitive market that encourages efficient value discovery for commodity
and capacity.
3. Promotion of a contracts-based market that allocates risks efficiently to parties responsible
for them.
4. Formulation and advisory on polices for efficient system settlement and least possible cost
incentives for maintaining the transportation network within its acceptable energy, frequency
responses and voltage tolerances.

TCN
Transmission Company of Nigeria (TCN) was incorporated in November 2005. TCN emerged
from the defunct National Electric Power Authority (NEPA) as a product of the merger of the
Transmission and Operations sectors on April 1, 2004. Being one of the 18 unbundled Business
Units under the Power Holding Company of Nigeria (PHCN), the company was issued a
transmission License on 1st July, 2006.

TCN is mandated to plan, build, operate, and maintain a reliable and efficient transmission grid.
ROLE OF TCN
TCN licensed activities include:
1. Transmission of electricity,
2. System operation and electricity trading in collaboration with NBET.

DISTRIBUTION SYSTEMS
Electric power distribution refers to the movement of electrical energy from injection
substations to points of utilization like mills, factories, residential and commercial buildings,
pumping stations, schools, etc.
In general, distribution system covers the network of power lines and associated equipment
between the injection substation and prepaid or post-paid power meter at the consumers’
premises. It consists of Feeders, Distributors and Service mains.
1. Feeders – are conductors (3-phase, 3-wire) which connect an injection substation to
mini-substations. A mini-substation is one that has a step-down transformer (usually
200kVA, 300kVA or 500kVA), feeder pillar or distribution box, line isolator, etc. from
which 3-phase, 4-wire overhead systems are used to distribute power through roads,
streets, etc to the consumers. In Nigeria, mini-substations are found at street junctions
along major roads. In recent times, some mini-substations are now pole mounted
commonly seen at banks or along the streets.
33kV transmission lines which connects a transmission substation to and injection
substation is sometimes referred to as 33kV feeder, however, the term “feeder” is best
suited for 11kV lines which connects the injection substation to mini-substations along
road and streets. Ideally, no tappings are taken from feeders so that current in it remains
the same from injection substation to mini-substation. But in practice in Nigeria, you find
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 a single feeder connected to several mini-substations. This is due to the fact that injection
substations are few and inadequate, so each feeder is used to supply power to a large area.
This cannot be done without making tappings to several mini-substations.
The figure below shows a mini-substation in Nigeria.

Food for thought: Have you ever wondered why the set-up in the picture below is called a
mini-substation?

2. Distributors – are conductors (3-phase, 4-wire overhead systems) from which tappings
are taken for supply to the consumers. The power output from mini-substations is at
415V line-to-line or 240V line-to-neutral which is very suitable for consumer appliances.
The current through a distributor is not constant because of the tappings at various points
along its length. Also, there will be voltage drops along the line as it stretches farther
away from the source. This drop along the line must be put into consideration while
designing distributors to ensure that the voltage at the receiving or consumer end does not
drop below ±6% of the rated value; usually 240V.

In another chapter of this course, we will take a better

look at voltage drops in Fig.xx
distributors and feeders.
: 3-phase, 4-Wire 415V distributor at the
source point. The upriser cable from the
distribution box (feeder pillar) is attached firmly
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to the LV pole. Minimum clearance is 25cm. Sometimes, the same pole is used to convey both
11kV and 415V lines as shown below:

Methods of Electric Power Distribution

(i) Overhead distribution (ii) Underground distribution
Overhead Distribution
Overhead distribution as a method of conveying electrical energy from one location to another
involves the use of bare conductors of copper or aluminium which are strung between poles or
towers erected or mounted at convenient distances along a route. The bare copper or aluminium
wire is fixed to an insulator, which is itself mounted onto a cross-arm (33kV)
Line supports consist of poles (wooden, reinforced concrete or steel) or tower structures. Poles
are used for 33kV lines and below while towers are employed for voltages above 33kV.
Underground Distribution
The use of underground cable is ordinarily confined to the short lengths required in congested
urban areas. The cost of underground cable is much more than that of aerial conductors.
Underground cables take up less right-of-way than overhead lines, have lower visibility, and are
less affected by bad weather. However, costs of insulated cable and excavation are much higher
than overhead construction. Faults in buried transmission lines take longer to locate and repair.
Underground lines are strictly limited by their thermal capacity, which permits fewer overloads
or re-rating than overhead lines. To improve underground cable power-handling capability,
research is being done in forced cooling techniques, such as circulating-oil and compressed-gas
insulation. Another Possible method is the use of cryogenic cables or superconducting cables.
Long underground AC cables have significant capacitance, which may reduce their ability to
provide useful power to loads beyond 80 km. Long underground DC cables have no such issue
and can run for thousands of miles.
Generally, a good distribution system, whether underground or overhead should meet the
following requirements:
1. The voltage at the consumer end must be maintained at not more than ±5% of the declared
voltage.
2. The insulation resistance of the whole system must be very high so that there is no undue
leakage or danger to human life.
3. The distribution cost must be minimal and affordable.
4. The loss of power in the system itself should not be in excess of 10% of the distributed
power.
5. The maximum current flowing through the conductor should be limited to such a value as not
to overheat the conductor or lead to insulation failure.

Q1. The static capacitor required for the power factor improvement has a guaranteed lifespan
(MTTF) of 3yrs and it will cost #12,000. Determine which is more profitable: to invest in the
static capacitor or to pay BEDC bills for 3years, given that this capacitor will raise the power
factor to 0.85.
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 VOLTAGE DROPS IN DISTRIBUTION SYSTEMS

POWER FACTOR

TARIFFS
Electrical energy is produced in generating stations, transmitted to the consumer at a cost which
is usually not fixed. The consumers need to pay for the use of electricity or electric power not
only to cover cost of generation and transmission but also for depreciation, infrastructural
development and profit for the generating company. Hence, electricity is a commodity that could
be bought and sold, especially in the Nigerian system today where different organisations trade
in the power sector.

In Nigeria today, electricity is generated by both the government and private sector. All
generated power (be it from government owned generating stations or from independent power
plants (IPP)), is metered and sold to the transmission company of Nigerian (TCN). TCN is the
government establishment that maintains and operates the national grid i.e the network of
transmission lines in Nigeria. However, TCN does not make this purchase directly, the buying
and selling of electricity is handled by another government establishment called Nigerian Bulk
Electricity Trading (NBET) company.

You might wonder how the generating companies and TCN agree on the pricing of this
commodity called electricity. Do they haggle over it the way you price fish in the market? No, of
course.

That is where the regulatory body called NERC comes in. Nigerian Electricity Regulatory
Commision is the organisation that fixes suitable prices for the sales (whether bulk or retail) of
electricity in Nigeria. At fixed intervals, they carry out economic studies and determine the
appropriate per unit cost of electricity in Nigeria.

The distribution companies (DISCO’s) also buy electricity from NBET at regulated prices by
NERC. They then finally sell to the consumers. All prices, right from generation to consumption
of electricity, are set by NERC.

TAFFIF is the per unit price at which electrical energy is supplied to a consumer.

Obviously, the electricity tariff in Nigeria is set by NERC, However, there are different types of
tariff for different categories of consumers.

Tariffs may be classified according to the following categories of consumers.

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 A. Domestic Premises: This applies to tariffs for electrical energy used for domestic
purposes in a private residence. It usually consists of a kwh-charge plus a fixed charge
depending on the number of rooms in the house or its floor area.
B. Off-peak tariff: This applies to electrical energy supplied to any premises usually
between 10:00 p.m. and 7:30 a.m. It consists of a kwh-charge lower than that of domestic
premises plus a fixed charge. This tariff is used to encourage consumers to use more
electricity during off-peak periods.
C. Combined premises: This applies to the cost charge for electricity on a building for
trade, business, professional purpose as well as domestic. e.g a house with shops and
flats.
D. Commercial tariff: This is the tariff on buildings used for commercial purpose only. It is
similar to the domestic tariff except for a higher fixed charge.
E. Agricultural tariff: This applies to farms, markets or other agricultural facilities. It is
similar to a commercial tariff.
F. Industrial tariff: This applies to industrial premises where large KVA is drawn. The
industrial tariff is a monthly maximum demand tariff.

Maximum demand is defined as twice the number of KVAh supplied during any 30 consecutive
minutes of the month under consideration. The overall effect of this tariff is that the lower the
power factor, the greater the average cost to the consumer of each kwh.
For loads exceeding 100 KVA, consumers are encouraged to take supply at 11 KV or 33 KV.
The injection substation to step down from 11KV or 33KV to 415V for consumption will then
belong to the consumer. This will eliminate additional charges that the distribution company
would have made to cover interest and depreciation on the substation, including cost of
transformer losses and overheads.

Why should we have a tariff system?

A. It will help to recover the cost of producing electricity at the power stations thereby
ensuring continuous production and availability of electricity.
B. It also helps to recover capital investments in transmission and distribution lines and their
various substations.
C. It also helps in the recovery of cost of operation, maintenance, equipment, billing etc
D. After all the cost recovery mentioned from a - c above, it is only fair that there should be
a suitable profit on the capital investment.
CHARACTERISTICS OF A GOOD TARIFF

1. A good tariff should ensure proper return on investment i.e there should be a reasonable
profit after covering cost of generation, transmission, depreciation, etc
2. A good tariff must be fair on all consumers of electricity at different levels, e.g large
consumers should pay a little less than small consumers. Also, a consumer with fixed
load should pay less than the one with unpredictable variable load.
3. A good tariff must be simple for an ordinary consumer to understand. It should clearly
state the units of power consumed, the cost per unit kw and the total cost of energy used.

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 4. The profit margin of a good tariff must be reasonable. The tariff must not exploit the
consumers, especially in cases where the distribution company has no rival or competitor.
5. A good tariff should be attractive. This means that it must be such that the consumer is
encouraged to use more power and pay with ease.

TYPES OF TARIFF

1. SIMPLE TARIFF
This has a uniform or fixed rate per unit of energy consumed. i.e it is "pay as you go". The rate
does not increase or decrease with the number of units consumed. No discount for consuming
more.

Cost = rate per kwh × No of units consumed

DISADVANTAGES
A. It does not encourage the consumer to use more electricity
B. Since there is no discrimination amongst consumers, all consumers are meant to share the
fixed charges evenly.
C. The cost per unit delivered is high.

2. FLAT RATE TARIFF

In this type of tariff, the consumers are grouped into categories as lifted previously and each
category is charged at a different uniform rate based on their loads. It has the advantage of
fairness within categories and ease of computation.
DISADVANTAGES
A. There is no bonus for consuming more energy. A big consumer will pay the same rate as
a meagre consumer within a category.
B. Since different rates are applied for different categories of load, different meters would
also be required for each category. This makes the application of this tariff expensive and
complicated.

3. BLOCK RATE TARIFF

In this type of tariff, energy is categorized into blocks and charged retrogressively at different
rates. For example, the first 20 units may be charged at N5 per unit ,the next 15 units at N4 per
unit, the next 10 units at N3 per unit, and so on. So, the more you consume , the less you pay.

The advantage is that it encourages more consumption which leads to increased load factor and
reduced cost of generation.

It's main disadvantage is that it lacks a measure of the customer's demand. It is commonly
employed by residential and small commercial consumers.

4. TWO-PART TARIFF
The total charge to be paid by the consumer for energy consumption is split into two parts such
as:
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i. Fixed charges
ii. Running charges

The fixed charge depends on the maximum demands on the consumer while the running charge
depends on the number of units consumed by the consumer. Hence, the consumer is charged at a
certain amount per kw of maximum demand plus a certain amount per kwh of energy consumed.

Total charge = N(b×kw + c×kw)

Where b = charge per kilowatt of maximum demand
and c = charge per kilowatt of energy consumed.
This type of tariff is mostly applicable to industrial consumers where Maximum demand is high.

ADVANTAGES
i. It is easily understood by the consumer
ii. It recovers the fixed charge which depends on maximum demand not actual consumption.

DISADVANTAGES
i. The consumer has to pay the fixed charges irrespective of the fact that he did not consume the
energy.
ii. Assessing and ascertaining the maximum Demand of consumers is error prone.

5. MAXIMUM DEMAND TARIFF

This is similar to a two part tariff except for the installation of a maximum demand meter. Recall
that one set-back of the two part tariff is the error in determining the accurate maximum
demand.This solves the problem, except that an additional maximum demand meter will have to
be installed. It is not suitable for residential or small consumers who have minimal maximum
demand.

6. POWER FACTOR TARIFF

This is one in which the power factor of the consumer is taken into consideration. Low power
factor increases the cost of providing electricity to the consumer. If a consumer has loads that
draw lagging current from the power supply, the tariff ensures that the consumer pays for it.
Power factor tariffs are of different types:

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 A. KVA Maximum Demand Tariff: This is a modified two-part tariff. Here, the fixed
charges are made on the basis of maximum demand in KVA instead of KW. Since KVA
is inversely proportional to power factor, a consumer with a low power factor pays more
fixed charges. The advantage of this tariff is that it makes consumers improve on the
power factor of their loads.
B. Sliding Scale Tariff: This also known as average power factor tariff takes a particular
value to P.F as its reference P.F. If the consumers P.F falls below the reference, the
consumer pays more fixed charges, but if the consumers load P.F is higher than the
reference value, the consumer gets a discount.
C. KW & KVAR Tariff: In this tariff, the KW is charged separately from the KVAR. The
more reactive power drawn, the more the consumer pays and vice versa.

7. THREE-PART TARIFF
In this tariff, the consumer charge is in three parts, namely:
a. Fixed charge
b. Semi-fixed charge
c. Running charge

i.e Total charge = N(a + b×kw + c×kwh)

Where:
a= Fixed charge made during each billing period. It covers interest, depreciation, labour cost of
collecting revenues, etc
b= charge per kilowatt of maximum demand
c= charge per kwh of energy consumed.
EXAMPLES AND EXERCISES
1. An electric supply company having a maximum load of 50MW, generates 18× 107 units per
annum and the consumers it supplies have an aggregate demand of 75MW. The annual expenses
including capital charges are:
For fuel = N90M
Fixed generation charges= N28M
Fixed transmission & distribution charges= N32M
Assuming 90% of the fuel cost is essential to running charges and the loss in transmission and
distribution as 15% of kwh generated, deduce a two-part tariff to find the actual cost of supply to
the consumers.

SOLUTION

Annual fixed charges:

For generation = N28,000,000
For Transmission And distribution = N32,000,000
For fuel (only 10%) = 10% of N90M
= N9,000,000----->based on the assumption that 90% of fuel cost goes for
running charges.

Total Annual Fixed Chargee = N28M +N32M

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 + N9M= N69M
The cost (N69M) has to be spread across aggregate Maximum demand of all the consumers i.e
75MW.
Therefore, cost per kilowatt of maximum demand is
N 69,000,000
= 6 =N920/KW
75 × 10
Now, let us calculate the annual running charges.
90
Cost of fuel (90%) = ×N9,000,000
100
= N81M
Since 15% of power generated is lost in transit i.e during transmission and distribution, then
actual Kwh delivered to the consumer is :
= 85% ×(18×10 7) =153×10 6Kwh
Note that each unit is in Kwh.
The running charges are also going to spread over the net kilowatt-hour generated.
Thus,
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N 81×10
Cost per Kwh = 6 = N0.5294/Kwh
153 ×10
=52.94K/Kwh.
Therefore the tariff is N920/Kw + 52.94Kobo/Kwh
Tariff = N920/Kw + 52.94K/Kwh
= N(920/Kw + 0.5294/Kwh)
2. Calculate the annual bill of a consumer whose maximum demand is 100Kw, P.F =0.8lagging
and load factor is 60%. The tariff used is N75 per KVA of maximum demand plus 15K per Kwh
consumed.
SOLUTION
Energy consumed in a year = Max. Demand in Kw x L.F x 24hrs x 365 days
= 100 x 0.6 x (24 x 365 days)
= 525,600Kw.
maximum de mand ∈Kw 100 KW
Maximum demand in KVA = = = 125KVA
power factor 0.8
Annual bill for the consumer will now be:
= (125KVA x N75 + 525,000Kw x N0.15)
= N88,215
Therefore, the consumer will pay N88,215 annually.
EXERCISE 1:
A consumer has a maximum demand of 100MW at 60% load factor. If the tarrif is N20 per KW
of maximum demand plus 1 kobo per kwh consumed, find the overall annual cost per kwh
consumed.
(Ans 1.38 kobo)

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