Smart grid technology can optimize power distribution in highly visible ways. End-of-line sensing and two-way communication capabilities allow utilities to boost efficiency through volt/VAR optimization, real-time peak demand response, and self-healing. Similar connected sensing technology can also be used to address a problem that has for the most part, flown under the radar in the United States: energy theft.
The issue of energy theft is beginning to emerge from the shadows as public utility commissions are putting increased pressure on utilities to curb it. Most estimates calculate that energy theft is responsible for $6 billion in lost revenue each year in the United States alone, and that cost is absorbed by customers through rate increases. A major headache for utilities has been that energy theft is often very difficult to detect.
While advanced metering infrastructure (AMI) has been quite effective at diminishing common forms of theft, thieves with greater knowledge and resources have simply moved to bypass meters altogether. This has proven to be a double whammy for utilities because these thieves steal great amounts of energy using industry approved equipment and professional wiring techniques that is not obvious to an untrained eye. Some thieves even go so far as to install their own transformers.
When energy theft exists invisibly in plain sight, traditional clues like suspicious wiring and activity lose efficacy. Instead, theft detection technology must be increased to match that of the thieves. Remote energy monitors installed on distribution lines can help pinpoint where theft is taking place by providing data that can be cross-referenced with billing data to reveal inconsistencies. Special theft detection monitors developed specifically for this purpose can be temporarily installed on suspect lines and moved to new areas as theft cases are investigated and closed.
Though largely a product of smart grid technology development, energy monitors designed specifically to detect theft do not necessarily require robust smart grid implementations to work effectively. Their portability allows them to be installed easily using magnets or brackets, and once in place, they can either tie into existing smart grid communication or report energy usage as standalone units.
Most utilities are not dedicating enough resources to theft detection and could recover significant revenue for relatively small investment. Doing so has the added benefit of increased customer satisfaction that results from lower rates and the increased stability of a grid that is not fighting undocumented energy usage. A combination of acting on tips, analyzing energy usage invoices, and deploying portable remote energy monitors is sufficient to catch the majority of energy theft.
Energy theft detection also has social implications because the practice is increasingly linked to illegal activity. Operations like unlawful marijuana grow houses make up a large percentage of energy theft and detecting it can lead authorities to criminal activity. Utilities have obligations to investors, customers, and society at large to be vigilant in keeping energy theft at bay.
