SUSTAINABLE INVESTMENT STRATEGIES FOR AGING DISTRIBUTION NETWORKS Dr. Eric Jennes 24/7 Netze Mannheim Germany Frankfurt (Germany), 6-9 June 2011 Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648
Short introduction of 24/7 Netze Introduction Asset simulation model Equipment groups Budget allocation Condition Criteria Condition / significance chart Target network planning and NPV analysis Conclusions Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648 Agenda
Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648 Introduction – 24/7 Netze Network Length Energy km4.400 GWh km5.700 GWh km24,9 Mio m km3.000 GWh Electricity Gas Water District Heat 24/7 Netze is the DSO Company of MVV Energie AG, Mannheim, and EVO AG, Offenbach
Decreasing network fees Distribution system profitability is at a risk Financial targets remain the same Re-investment, operation and maintenance budgets have to be curtailed Sustainability of energy supply remains imperative Asset management approach in four steps Asset Simulation Reliability-centred maintenance (RCM) Target network planning Net present value analysis (NPV) Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648 Introduction
Asset models (age & maintenance measures breakdown rate) Reliability models (break downs & outages supply interruptions) Asset base: equipment groups, characterized by quantities and years of construction Specific cost models Rehabilitation and maintenance strategy, budget restricts Asset Simulation Rehabilitation- measures Maintenance- measures Disturbances Allocation of Budget Strategy Development in reliability Development in cost iterative development and optimization of strategies Supply Reliability Cash-Flow Asset simulation: schematic model Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648
Asset Simulation: equipment Groups Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648 Equipment is clustered in equipment groups Criteria for clustering Aging behavior Specific cost Reliability impact Voltage level respectively pressure range Technology, material etc. Electricity network Gas network
Asset Simulation: budget allocation Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648 Budget allocation has impact on development of Number of disturbances Number of outages Unavailability Repair cost Optimized Budget allocation increases sustainability with a limited budget Budget allocation can be specified on a annual base as well as on a long term base
RCM: condition criteria Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648
RCM: condition / significance charts Condition / significance chart for each equipment group necessary Prioritization of budget according to condition and significance of the individual equipment Update of the charts on an annual base needed
Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648 Target network planning and NPV Measures for rehabilitation of specific equipment become approved with respect to their necessity in a target network Each target network becomes approved by a economic evaluation (NPV)
24/7 Netze has developed a 4-step method to optimize investment strategy for their aging distribution networks This approach is applicable not only to gas and electricity but also to water and district heating networks The method developed ensures Sustainable budgeting and budget allocation Effective prioritization of measures Clear need of equipment Profitability Dr. Eric Jennes – 24/7 Netze – Germany – Session 5 – Paper 0648 Conclusions