1. SIMILARITIES AND DIFFERENCES IN THE STRATEGIC ASSET SIMULATION FOR ELECTRICITY AND GAS DISTRIBUTION GRIDS Klaus PetersRWE Rhein-Ruhr - Germany Armin Gaul RWE - Germany Heiko Spitzerentellgenio - Germany Terence Dürauerentellgenio - Germany Frankfurt, 09.06.2011

2. Frankfurt (Germany), 6-9 June 2011 Asset management capabilities in the electricity and in the gas sector have reached a new level  The main challenge for the asset manager is to balance conflicting targets over time  General targets are sector independent, e.g.: save revenue, minimize costs and increase profits ensure asset availability and quality obey regulatory constraints (re)consider investment and maintenance strategies RegulationTechnology Customer Finance Asset Management 2 Klaus Peters, RWE Rhein-Ruhr / Armin Gaul, RWE / Heiko Spitzer, entellgenio / Terence Dürauer, entellgenio – Germany – paper 0825

3. Frankfurt (Germany), 6-9 June 2011 The different history of electricity and gas grids leads to different starting points  main grid extensions took place in different point in time  “position” of the grid in its lifecycle is unequal  closed circle of renewal for gas grids are (often) not yet completed (e.g. expected lifetime of pipes)  different development of grids in the future expected - schematically - gas grid electricity grid 3 Klaus Peters, RWE Rhein-Ruhr / Armin Gaul, RWE / Heiko Spitzer, entellgenio / Terence Dürauer, entellgenio – Germany – paper 0825

4. Frankfurt (Germany), 6-9 June 2011 Using asset simulation in different sectors, sector specific parameters have to be adapted  specific plant safety aspects  specific technical rules (VDE/DVGW – German Technical and Scientific Association for Gas and Water) predefine some parameters to a specific valid range (e.g. maintenance interval) – still having hundreds of decision parameters  specific technologies, e.g. grid design, materials, mechanical stress,..  specific external requirements, e.g. regulatory aspects or requirements through “EEG” (Renewable Energy Sources Act) and different customer needs asset simulation tool - schematically - 4 Klaus Peters, RWE Rhein-Ruhr / Armin Gaul, RWE / Heiko Spitzer, entellgenio / Terence Dürauer, entellgenio – Germany – paper 0825

5. Frankfurt (Germany), 6-9 June 2011 Tools and methods can be adapted – as long as specific parameters and targets are retained  similarities concerned asset management and the appliance of tools and methodologies  individual parameters, targets and dependencies have to be represented in an appropriate way  strategy benchmarks described in the paper can be adapted to the needs of an electricity distribution grid provider and may be enhanced with specific required key figures  combination of tools and methodologies (e.g. asset simulation, sensitivity analysis, strategy benchmark, asset optimization) enables asset managers to focus on their core competences while regarding a wider range of requirements Klaus Peters, RWE Rhein-Ruhr / Armin Gaul, RWE / Heiko Spitzer, entellgenio / Terence Dürauer, entellgenio – Germany – paper 0825 5