Holistic asset management for utility network companies

Addressing
challenges
of
the
energy
transition
with
grid
asset
management

The

energy
transition
is
gearing
up
to
full
speed
as
renewable
energy
sources
replace
fossil-based
systems
of
energy
production.
The
grid
itself
must
green
to
operate
within
the

environmental,
social
and
governance
(ESG)
objectives
and
become
carbon
neutral
by
2050.
This
shift
requires
energy
utility
companies
to
plan
their
grid
asset
management
holistically
as
they
find
a
new
balance
between
strategic
objectives.

Sustainable
asset
performance
has
become
one
of
the
key
drivers
in
decision-making
for
asset
planning
and
grid
modernization
business
processes.
New
emerging
technology
enables
AI-powered
digital
twins
to
operate
the
smart
grid.
However,
operators
must
balance
intermittent
renewable
energy
intake
to
produce
a
controlled,
stable
output.

A
balanced
transition
between
old
and
new
systems

The
demand
to
fulfill
existing
long-term
contracts
and
an
abundance
of
new
demands
for
industrial
electrification
pose
new
challenges
to
grid
management.
Finding
the
right
balance
requires
load
forecasting
and
simulation
to
prevent
net
congestion.
Economical
optimization
must
factor
in
new
market
dynamics
and
ensure
reliable
operation.

Existing
network
assets
are
aging,
and
more
intelligent
asset
management
strategies
must
emerge
to
maintain
and
replace
the
grid
within
tightening
budgets.
Asset
investment
planning
must
find
a
balance
between
these
systems
while
minimizing
risk
and
carbon
footprint.

To
manage
the
grid
of
the
future,
utility
companies
must
shift
from
traditional
asset
management
to
a
holistic
approach.
This
shift
will
broaden
insights
so
these
companies
can
take
strategic,
tactical
steps
to
optimize
operational
network
development
and
operation
decisions.

Asset
lifecycle
management

Holistic
grid
asset
management
adopts
a
lifecycle
view
across
the
whole
asset
lifespan
to
obtain
a
safe,
secure,
reliable
and
affordable
network.
Utility
companies
must
break
down
the
internal
departmental
walls
between
the
silos
of
grid
planning,
construction,
operation,
maintenance
and
replacement
to
allow
end-to-end
visibility.
They
must
connect
underlying
technology
systems
to
create
a

single
pane
of
glass
for
all
operations.
A
shared
data
model
across
operating
systems
serves
as
the
basis
for
integration,
simulation,
prediction
and
optimization
by
using
generative
AI
models
to
drive
next-level
business
value.

The
goal
of
asset
management
is
to
optimize
capital
expenditures
(CapEx)
and
operating
expenses
(OpEx)
in
a
seamless
transition
between
the
timescale
of
the
planning
horizons.
The
following
figure
demonstrates
the
complex
planning
and
optimization
objectives
required
for
a
holistic
view
of
the
asset
management
lifecycle:

A
top-down
strategic
approach
for
whole-life
planning
of
asset
investment
portfolio
matching
future
ESG
goals
needs
to
connect
with
a
bottom-up
maintenance
and
replacement
strategy
for
existing
assets.
Asset
investment
planning
(AIP)
results
in
project
portfolio
management
and
product
lifecycle
management
to
plan,
prioritize
and
run
asset
expansion
and
replacement
projects
within
the
boundaries
of
available
budget
and
resource
capacity.

Real-time
operational
data
provides
an
asset
health
view
that
drives
condition-based
maintenance
and
replacement
planning.
This
is
the
domain
of
enterprise
asset
management
(EAM)
for
maintenance
execution
and
asset
performance
management
(APM)
for
strategy
optimization.
Traditionally,
a
disconnect
at
the
tactical
level
has
separated
these
planning
and
optimization
methodologies.
At
the
same
time,
operational
risk
management
requires
respecting
health,
safety
and
environment
(HSE)
management
and
process
safety
management
to
manage
potentially
hazardous
operations.
The
maintenance
repair
and
overhaul
(MRO)
spare
parts
strategy
must
align
with
the
asset
strategy
in
terms
of
criticality
and
optimal
stock
value.

Acknowledgment
of
the
complexity
of
planning
with
multidimensional
objectives
on
different
timescales
is
the
starting
point
for
adopting
a
holistic
view
of
asset
management.

Read
more
about
energy
transition