An investment level decision method to secure long-term reliability

The slowdown in power demand increase and facility replacement causes the aging and lower reliability in power facility. And the aging is followed by the rapid increase of repair and replacement when many facilities reach their lifetime in future. This paper describes a method to estimate the repair and replacement costs in future by applying the life-cycle cost model and renewal theory to the historical data. This paper also describes a method to decide the optimum investment plan, which replaces facilities in the order of cost-effectiveness by setting replacement priority formula, and the minimum investment level to keep the reliability. Estimation examples applied to substation facilities show that the reasonable and leveled future cash-out can keep the reliability by lowering the percentage of replacements caused by fatal failures.