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DNV GL © 2014 SAFER, SMARTER, GREENER DNV GL © 2014 Asset Management Before and After the Equipment Purchase 1 Industry Input on How to Improve Asset Performance Larry Dickerman September 2015

Asset Management Before and After the Equipment Purchase

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Page 1: Asset Management Before and After the Equipment Purchase

DNV GL © 2014 SAFER, SMARTER, GREENER1 DNV GL © 2014

Asset Management Before and After the Equipment Purchase

Industry Input on How to Improve Asset Performance

Larry Dickerman September 2015

Page 2: Asset Management Before and After the Equipment Purchase

DNV GL © 20142

Agenda

Discussion of the Asset Management Before the Purchase - Testing Landscape− KEMA Laboratories− Testing capabilities− Failure rates− Testing versus certification− Discussion of utility needs

Discussion of the Future of Asset Management – New Challenges− Traditional Asset Management best practices (e.g., Asset Management in

Smart Grid)− Growing Issues with variability of renewable resources (e.g., Smart Grid in

Asset Management)− Discussion of utility needs

Page 3: Asset Management Before and After the Equipment Purchase

DNV GL © 20143 SAFER, SMARTER, GREENERDNV GL © 2013

Asset Management Before the Purchase – Testing Landscape

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KEMA Laboratories

Independent Have enough power and voltage to test

everything Covers high-power and high-voltage:

- switchgear- transformers- metering and protection

NetherlandsCzech RepublicPennsylvania

Certificates recognized and accepted world wide

80 years in business $100 M current expansion

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KEMA Laboratories at Chalfont, PA

KEMA is a major force in testing electric utility equipment in the United States for every major equipment supplier.

Our KEMA Laboratories perform $60 million in tests annually, including:– Arresters– Bus duct/bus bar– Cable & Accessories– Breakers– DC equipment– Fuses– Insulators– Substation automation– Switches and switchgear– Transformers

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Scope of Testing

Testing methods Laboratory testing Onsite testing Witness testing Remote testing

Documents Type test certificates Test reports Calibration certificates Inspection reports Investigation reports

Tests KEMA type test certificate KEMA report of performance KEMA test report Power electronics tests Calibration of systems Diagnostics Low voltage AC testing Thermal testing continuous current Low voltage DC testing Capacitor switching High Voltage testing

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Reasons for Testing

KEMA Test Report

Performed at independent lab according to user’s specifications

Ordered by equipment user

Verify a specific product meets user-defined requirements

Must be read carefully

  

Type tests Certificate

Verify that an example product meets the requirements of a specific standard

Ordered by manufacturer Performed at independent

lab according to IEEE and ANSI standards

Certified by testing laboratory

Complete peace of mind  

  

KEMA Report of Performance

Verify that an example product meets a subset of the requirements of a specific standard

Ordered by manufacturer

Performed at independent lab according to a subset of IEEE and ANSI standards

  

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Reasons for Testing - Increased HSE focus

Fault arc management, internal arc detection and handling

Reducing fire risks

Low magnetic field equipment design

Controlling sound levels, RI and EM emissions

Biodegradable transformer oil

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Results - Around 25% of test-objects initially fail tests

Broken bushing

Oil spill with fire

Line trap

oil spill

Disconnector Trafo winding

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Results - Around 25% of test-objects initially fail tests

Switchgear panel Distribution transformer

Oil spill

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Transformer Testing Statistics By Rating

Higher rated transformers have higher failure rates

25-50 50-100 100-200 >2000

10

20

30

40

50

60

initially not OK initially OKMVA (rated)

num

ber

of t

rans

form

ers

20-100 100-200 200-300 300-400 >4000

10

20

30

40

50

60

initially not OK initially OKkV (rated)

num

ber

of t

rans

form

ers

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KEMA Power Transformer Test Statistics By Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

5

10

15

20

25

30

35

40

0

10

20

30

40

50

60

totalfailure rate %

tota

l num

ber o

f tes

ted

trans

form

ers

failu

re ra

te to

pas

s sh

ort-c

ircui

t tes

t [%

]

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Cables – Type Testing

Failure rates per voltage class HV: 22% MV: 22%

Our experience between 1993 and 2013550 components over 20

years

Source: DNV GL

Page 14: Asset Management Before and After the Equipment Purchase

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DNV GL HV cable / accessories test statistics by component

Failure rate 1993 - 2008

cable termination straight joint crossbonding joint

transition joint0

10

20

30

40

50

Faul

ire ra

te to

pas

s te

st (%

)

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In Service Equipment and Material Failures Continue to Be An Issue

Did you know?

In the United States, approximately 25% of outages are due to equipment and material failures.

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In Service Equipment and Material Failures Continue to Be An Issue

Europe requires certification of equipment that guarantees a minimum quality level and a level playing field which facilitate purchase decisions.

Suppliers certainly use the testing done at Chalfont to understand possible defect however it is entirely at their discretion.

Present third party testing only covers a portion of the standard in most cases as opposed to the entire standard

Present third party investigation of material and equipment failures is the exception rather than the rule.

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Discussion - How Can KEMA Test Labs Further Help Utilities?

ARC Flash testing and risk assessment? Testing of smart grid equipment? Remaining life assessments? Testing variability of solar on power systems and mitigation

techniques/equipment? Failure investigation? Audit of utility internal repair shops or certification? Testing material and equipment beyond manufacturer’s acceptance testing (ANSI,

IEEE, etc.) to look at endurance (how long it will last)? Helping to develop better targeted maintenance programs based on our testing

experience of the same equipment? Others?

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DNV GL © 201418 SAFER, SMARTER, GREENERDNV GL © 2013

Asset Management After the Purchase – New Challenges

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From Asset Management to Asset Optimization

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Traditional Asset Management Best Practices – The Present Situation

Transmission and Stations

Well established approaches and disciplines due in part to NERC compliance Risk & Condition based asset management Assessment tools Benefit versus cost analysis Optimized spending plan that is defensible to CFO and utility commissions

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Traditional Asset Management Best Practices – The Present Situation

Distribution

Tends towards accepted programs that are prioritized locally but funded centrally Improving asset base for many utilities but lack of clarity about how to use it Emerging tendency to view each feeder as a complete asset with risks and health

considerations – a more sophisticated and defensible approach to worst performing feeders

Struggles to prioritize new technology versus asset health spending

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Including Smart Grid in Asset Management Business Case

Asset management principals applied to Smart Grid

– Across replacement, system expansion, technology projects– Disciplined approach that avoids generalizations and builds cost and benefits

from specific assets and circuits/lines– Agreed metrics

More regulatory scrutiny

– Defensible spending plan– Environmental emphasis– How to transition to grid of future (e.g. accommodate distributed generation)

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05/01/2023Technology Investment Planning23

Including Smart Grid in Asset Management – Optimal Spend

Asset management principals applied to Smart Grid An approach that – navigates the changing environments impacting the electrical system

– optimizes spend by applying proven, new and emerging options to meet system and equipment performance objectives.

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Including Smart Grid in Asset Management - Optimal Spend

Replacements, refurbishment or new technology implementations should be prioritized to achieve corporate goals (reliability, safety, financial performance, etc.)

Prioritized list of spending across and within projects. Understand the relationship between dollar spend and benefit.

Page 25: Asset Management Before and After the Equipment Purchase

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Growing Issues with Variability of Renewable Resources/DERRenewables are becoming game changers

Decentralised renewable

power generation sources are

changing the utility model

Renewable technology has

relied on government

incentives and policy

mechanisms to date, but the price curves are coming

down

Lower Production Cost + Increased Efficiency = Growing Market

Page 26: Asset Management Before and After the Equipment Purchase

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Growing Issues with Variability of Renewable Resources/DERRenewables are becoming game changers

Implications

Different operational approaches and equipment to handle variability Different asset life both positive and negative due to solar energy concentration

increasing Distribution planning will require dynamic models instead of steady state Independent laboratory testing will likely be required to determine the impact on

traditional assets and new assets developed for mitigation to find what models miss

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Including Smart Grid in Asset Management Using historical near real time information from AMI, SCADA, Distribution

Automation, etc. to create a planning sandbox for consideration of new technology investments and capacity additions.

Using information from AMI, SCADA, Distribution Automation, etc. in rapid load flow models to identify operational issues and opportunities to optimize dynamically– Reduce system losses through VAR control– Reduce system losses through dynamic circuit reconfiguration– Reduce demand through voltage control– Implement short term system oriented 30 second demand response to deal with

variability of distributed resources– Self healing– Use near real time information to identify asset management needs and

reprioritize spending

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Discussion - How Can DNV GL (KEMA) Help Utilities?

Traditional Asset Management?

Including asset management perspectives in Smart Grid business case?

Distribution planning with increasing levels of distributed resources such as solar?

Using Smart Grid data for asset management?

Asset database or asset management IT platform?

Independent certification of equipment performance to industry standards (IEEE, IEC, ANSI)

Others?

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SAFER, SMARTER, GREENER

www.dnvgl.com

Asset Management Before and After the Equipment Purchase

Larry [email protected]