Economic Effects of Measures for Reducing Losses in Electrical Distribution Network within the Transition to a Sustainable Active Distribution System
Research Article  ·  Published: 16 November 2025
Issue cover
ICCK Transactions on Electric Power Networks and Systems
Volume 1, Issue 2, 2025: 50-57
Research Article Free to Read

Economic Effects of Measures for Reducing Losses in Electrical Distribution Network within the Transition to a Sustainable Active Distribution System

1 Faculty of Technical Sciences Čačak, University of Kragujevac, Čačak, Serbia
* Corresponding Author: Vladica Mijailović, [email protected]
Volume 1, Issue 2

Article Information

Abstract

This paper provides a comprehensive analysis of the economic implications of implementing advanced loss-reduction measures in electrical distribution networks, as observed across developed economies. The study evaluates a set of technical and infrastructural interventions that have demonstrated significant potential in enhancing network efficiency and reducing operational losses. These measures encompass the large-scale deployment of smart electricity meters, the replacement of conventional distribution transformers with units employing amorphous metal cores, and the mitigation of transformer overloading through the installation of higher-rated capacity units. Additional strategies include increasing the cross-sectional area of distribution conductors, optimizing feeder configurations by extending medium-voltage lines, shortening low-voltage feeders, and relocating substations closer to feeder midpoints. Moreover, the paper examines the transition from the conventional “one substation–multiple feeders” configuration toward a more efficient “one substation–one feeder” supply concept. The results of the analysis confirm that the implementation of these measures is both technically and economically justified, yielding substantial improvements in network performance, energy efficiency, and long-term operational sustainability.

Graphical Abstract

Economic Effects of Measures for Reducing Losses in Electrical Distribution Network within the Transition to a Sustainable Active Distribution System

Keywords

electrical distribution network losses profitability reconfiguration

Data Availability Statement

Data will be made available on request.

Funding

This work was supported by the Ministry of Science, Technological Development and Innovation of the Republic of Serbia, and these results are parts of the Grant No. 451-03-136/2025-03/200132, with University of Kragujevac - Faculty of Technical Sciences Čačak.

Conflicts of Interest

The authors declare no conflicts of interest.

Ethical Approval and Consent to Participate

Not applicable.

References

  1. Petrov, K., & Nunes, R. (2009). Analysis of Insufficient Regulatory Incentives for Investments into Electric Networks. An Update. Final Report, Kema Consulting for the European Copper Institute, pl.
    [Google Scholar]
  2. Kotini. (n.d.). 7-E08-ENM-04-03 Treatment-of-Losses PC 2008-07-15. Scribd. Retrieved from https://www.scribd.com/document/460752829/7-E08-ENM-04-03-Treatment-of-Losses-PC-2008-07-15
    [Google Scholar]
  3. Topalis, F. V., Targosz, R., Irrek, W., Rialhe, A., & Baginski, A. (2008). Strategies for development and diffusion of energy efficient distribution transformers in Europe. Proc. IEEE CEFC, 582.
    [Google Scholar]
  4. Waide, P., & Scholand, M. (2014). PROPHET II: The potential for global energy savings from high-efficiency distribution transformers. Waide Strategic Efficiency Limited and N, 14.
    [Google Scholar]
  5. Electricity information. (07). IEA. Retrieved from https://www.iea.org/data-and-statistics/data-product/electricity-information
    [Google Scholar]
  6. Niall, K., & Walsh, A. (2011, June). Maximising benefits to customers from distribution losses management—An ESBN perspective. In Proc. 21st Int. Conf. Electricity Distribution (pp. 1-4).
    [Google Scholar]
  7. Bucher, C. (2014). Analysis and simulation of distribution grids with photovoltaics (Doctoral dissertation, ETH Zurich).
    [Google Scholar]
  8. Bergesen, B., Groth, L. H., Langseth, B., Magnussen, I. H., Spilde, D., & Toutain, J. E. W. (2013). Energy consumption 2012-household energy consumption. Magnussen, IH, Ed.
    [Google Scholar]
  9. Chembe, D. K. (2009, October). Reduction of power losses using phase load balancing method in power networks. In Proceedings of the World Congress on Engineering and Computer Science (Vol. 1, pp. 20-22).
    [Google Scholar]
  10. 2nd CEER report on power losses. (2024, May 29). CEER. Retrieved from https://www.ceer.eu/publication/2nd-ceer-report-on-power-losses/
    [Google Scholar]
  11. Eurelectric powering people. (2020). Distribution Grids in Europe Facts and Figures 2020. Eurelectric.
    [Google Scholar]
  12. JRC. (n.d.). Distribution system operators observatory: From European electricity distribution systems to representative distribution networks. JRC Publications Repository. Retrieved from https://publications.jrc.ec.europa.eu/repository/handle/JRC101680
    [Google Scholar]
  13. 3rd CEER report on power losses. (2025, February 11). CEER. Retrieved from https://www.ceer.eu/publication/3rd-ceer-report-on-power-losses/
    [Google Scholar]
  14. Zhang, D., Li, J., & Hui, D. (2018). Coordinated control for voltage regulation of distribution network voltage regulation by distributed energy storage systems. Protection and Control of Modern Power Systems, 3(1), 1-8.
    [CrossRef] [Google Scholar]
  15. Efkarpidis, N. (2016). Assessment of voltage regulation methods in low voltage distribution networks (Doctoral dissertation). KU Leuven – Faculty of Engineering Science.
    [Google Scholar]
  16. Kulmala, A. (2014). Active voltage control in distribution networks including distributed energy resources. Tampereen teknillinen yliopisto. Julkaisu-Tampere University of Technology. Publication, 1203.
    [Google Scholar]
  17. Papazacharopoulos, N. (2014). Voltage control in MV distribution networks with a large share of distributed renewable generation.
    [Google Scholar]
  18. Keitoue, S., Murat, I., Filipović-Grčić, B., Župan, A., Damjanović, I., Pavić, I., ... & Miklavcic, M. ENERGIJA.
    [Google Scholar]
  19. Corhodzic, S. (2006). A New Approach to Assessment and Utilisation of Distribution Power Transformers (Doctoral dissertation, Victoria University).
    [Google Scholar]
  20. Bollen, M. H., & Hassan, F. (2011). Integration of distributed generation in the power system. John wiley & sons.
    [Google Scholar]
  21. Siemens Energy. (2010). Electric system losses.
    [Google Scholar]
  22. Iowa State University. (2017). Introduction to energy distribution systems.
    [Google Scholar]
  23. Mijailović, V., & Ranković, A. (2022). Efikasna distributivna mreža – trenutno stanje i trendovi: Uporedni pregled. U Zborniku radova 13. savetovanja o elektrodistributivnim mrežama (CIRED Srbija), Kopaonik, 12–16. septembar 2022, R-4.11.
    [Google Scholar]
  24. Mijailović, V., & Ranković, A. (2024). Ekonomski efekti mera za smanjenje gubitaka u distributivnoj mreži u okviru prelaska na održiv aktivan sistem. U Zborniku radova 14. savetovanja o elektrodistributivnim mrežama (CIRED Srbija), Kopaonik, 16–20. septembar 2024, R-4.12.
    [CrossRef] [Google Scholar]

Cite This Article

APA Style
Mijailović, V., & Ranković, A. (2025). Economic Effects of Measures for Reducing Losses in Electrical Distribution Network within the Transition to a Sustainable Active Distribution System. ICCK Transactions on Electric Power Networks and Systems, 1(2), 50–57. https://doi.org/10.62762/TEPNS.2025.266878
Export Citation
RIS Format
Compatible with EndNote, Zotero, Mendeley, and other reference managers
TY  - JOUR
AU  - Mijailović, Vladica
AU  - Ranković, Aleksandar
PY  - 2025
DA  - 2025/11/16
TI  - Economic Effects of Measures for Reducing Losses in Electrical Distribution Network within the Transition to a Sustainable Active Distribution System
JO  - ICCK Transactions on Electric Power Networks and Systems
T2  - ICCK Transactions on Electric Power Networks and Systems
JF  - ICCK Transactions on Electric Power Networks and Systems
VL  - 1
IS  - 2
SP  - 50
EP  - 57
DO  - 10.62762/TEPNS.2025.266878
UR  - https://www.icck.org/article/abs/TEPNS.2025.266878
KW  - electrical distribution network
KW  - losses
KW  - profitability
KW  - reconfiguration
AB  - This paper provides a comprehensive analysis of the economic implications of implementing advanced loss-reduction measures in electrical distribution networks, as observed across developed economies. The study evaluates a set of technical and infrastructural interventions that have demonstrated significant potential in enhancing network efficiency and reducing operational losses. These measures encompass the large-scale deployment of smart electricity meters, the replacement of conventional distribution transformers with units employing amorphous metal cores, and the mitigation of transformer overloading through the installation of higher-rated capacity units. Additional strategies include increasing the cross-sectional area of distribution conductors, optimizing feeder configurations by extending medium-voltage lines, shortening low-voltage feeders, and relocating substations closer to feeder midpoints. Moreover, the paper examines the transition from the conventional “one substation–multiple feeders” configuration toward a more efficient “one substation–one feeder” supply concept. The results of the analysis confirm that the implementation of these measures is both technically and economically justified, yielding substantial improvements in network performance, energy efficiency, and long-term operational sustainability.
SN  - 3070-2607
PB  - Institute of Central Computation and Knowledge
LA  - English
ER  - 
BibTeX Format
Compatible with LaTeX, BibTeX, and other reference managers
@article{Mijailovi2025Economic,
  author = {Vladica Mijailović and Aleksandar Ranković},
  title = {Economic Effects of Measures for Reducing Losses in Electrical Distribution Network within the Transition to a Sustainable Active Distribution System},
  journal = {ICCK Transactions on Electric Power Networks and Systems},
  year = {2025},
  volume = {1},
  number = {2},
  pages = {50-57},
  doi = {10.62762/TEPNS.2025.266878},
  url = {https://www.icck.org/article/abs/TEPNS.2025.266878},
  abstract = {This paper provides a comprehensive analysis of the economic implications of implementing advanced loss-reduction measures in electrical distribution networks, as observed across developed economies. The study evaluates a set of technical and infrastructural interventions that have demonstrated significant potential in enhancing network efficiency and reducing operational losses. These measures encompass the large-scale deployment of smart electricity meters, the replacement of conventional distribution transformers with units employing amorphous metal cores, and the mitigation of transformer overloading through the installation of higher-rated capacity units. Additional strategies include increasing the cross-sectional area of distribution conductors, optimizing feeder configurations by extending medium-voltage lines, shortening low-voltage feeders, and relocating substations closer to feeder midpoints. Moreover, the paper examines the transition from the conventional “one substation–multiple feeders” configuration toward a more efficient “one substation–one feeder” supply concept. The results of the analysis confirm that the implementation of these measures is both technically and economically justified, yielding substantial improvements in network performance, energy efficiency, and long-term operational sustainability.},
  keywords = {electrical distribution network, losses, profitability, reconfiguration},
  issn = {3070-2607},
  publisher = {Institute of Central Computation and Knowledge}
}

Article Metrics

Citations
Crossref
0
Scopus
0
Views
1004
PDF Downloads
252

Publisher's Note

ICCK stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and Permissions

Institute of Central Computation and Knowledge (ICCK) or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
ICCK Transactions on Electric Power Networks and Systems
ICCK Transactions on Electric Power Networks and Systems
ISSN: 3070-2607 (Online)
Portico
Preserved at
Portico