Available online at www.sciencedirect.

com

ScienceDirect
Availableonline
Available onlineatatwww.sciencedirect.com
www.sciencedirect.com
Energy Procedia 00 (2017) 000–000

ScienceDirect
ScienceDirect
www.elsevier.com/locate/procedia

Energy
EnergyProcedia
Procedia143 (2017) 000–000
00 (2017) 611–616
www.elsevier.com/locate/procedia

World Engineers Summit – Applied Energy Symposium & Forum: Low Carbon Cities & Urban
Energy Joint Conference, WES-CUE 2017, 19–21 July 2017, Singapore

Asset Performance
The 15th Management
International Symposium for
on District Power
Heating and Grids
Cooling

Assessing the feasibility of Silasusing

Wan the heat demand-outdoor
temperature function for#02-05
GE Grid Solutions, a long-term district
Techlink, 31 Kaki Bukit heat
Rd 3, Singapore demand forecast
417818

Abstract I. Andrića,b,c*, A. Pinaa, P. Ferrãoa, J. Fournierb., B. Lacarrièrec, O. Le Correc

a
IN+ Center
This paper for Innovation,
explores Technology
the business drivers, and Policy Research
challenges - Instituto Superior
and innovations Técnico,toAv.
in the industry Rovisco Pais
maximize 1, 1049-001
reliability in theLisbon,
powerPortugal
grid
b
Veolia Recherche & Innovation, 291 Avenue Dreyfous Daniel, 78520 Limay, France
through Assetc Performance Management.
Département Systèmes Énergétiques et Environnement - IMT Atlantique, 4 rue Alfred Kastler, 44300 Nantes, France
It highlights the role of digitization in delivering reliable and data-driven decisions through bringing together information from
different organization silos and performing analysis in a methodical, consistent manner. Digital technologies such as mobile
tools, industrial internet, big data and predictive analysis are some of the technologies that can be leveraged.
Abstract

An actualheating
District cases study is usedare
networks to commonly
illustrate how an asset in
addressed performance management
the literature as one of project is implemented
the most and how
effective solutions forcustomer
decreasing the
achieved extremely positive return on investment in a short time with practical technologies.
greenhouse gas emissions from the building sector. These systems require high investments which are returned through the heat
sales. Due to the changed climate conditions and building renovation policies, heat demand in the future could decrease,
prolonging the investment return period.
©The2017 Thescope
main Authors. Published
of this paper is by
to Elsevier
assess theLtd.
feasibility of using the heat demand – outdoor temperature function for heat demand
Peer-review
forecast. The district of Alvalade,the
under responsibility of scientific
located committee
in Lisbon of the World
(Portugal), Engineers
was used as a Summit – Applied
case study. EnergyisSymposium
The district & 665
consisted of
Forum: Low
buildings Carbon
that vary Cities
in both&construction
Urban Energy Joint and
period Conference.
typology. Three weather scenarios (low, medium, high) and three district
renovation scenarios were developed (shallow, intermediate, deep). To estimate the error, obtained heat demand values were
Keywords: Asset Performance Management; Digital; Industrial Internet; Condition Monitoring; Analytics
compared with results from a dynamic heat demand model, previously developed and validated by the authors.
The results showed that when only weather change is considered, the margin of error could be acceptable for some applications
(the error in annual demand was lower than 20% for all weather scenarios considered). However, after introducing renovation
1.scenarios,
Introduction
the error value increased up to 59.5% (depending on the weather and renovation scenarios combination considered).
The value of slope coefficient increased on average within the range of 3.8% up to 8% per decade, that corresponds to the
Asset Performance
decrease in the number Management
of heating hours (APM) in theduring
of 22-139h electricity generation,
the heating seasontransmission
(depending onandthedistribution
combinationcontext refers
of weather and
torenovation
the decisions thatconsidered).
scenarios the asset On owner has to
the other make
hand, to increase
function interceptasset availability,
increased optimize
for 7.8-12.7% overall
per decade cost of asset
(depending on the
maintenance and reduce
coupled scenarios). risks suggested
The values associatedcouldwithbeasset
usedoperation.
to modify Consistent
the functiondata management,
parameters for the risk management
scenarios tools
considered, and
improve
and the accuracy
advanced analyticsof heat demand
through estimations.
smart use of technology is required to make this a reality. Some of these technologies
are discussed, such as digital and cloud services. A successful reference project is also discussed.
© 2017 The Authors. Published by Elsevier Ltd.
Peer-review under responsibility of the Scientific Committee of The 15th International Symposium on District Heating and
Cooling.

Keywords: Heat demand; Forecast; Climate change

1876-6102 © 2017 The Authors. Published by Elsevier Ltd.
Peer-review under responsibility of the scientific committee of the World Engineers Summit – Applied Energy Symposium &
Forum: Low Carbon Cities & Urban Energy Joint Conference.
1876-6102 © 2017 The Authors. Published by Elsevier Ltd.
Peer-review under responsibility of the Scientific Committee of The 15th International Symposium on District Heating and Cooling.
1876-6102 © 2017 The Authors. Published by Elsevier Ltd.
Peer-review under responsibility of the scientific committee of the World Engineers Summit – Applied Energy Symposium & Forum: Low
Carbon Cities & Urban Energy Joint Conference.
10.1016/j.egypro.2017.12.735
612 Silas Wan et al. / Energy Procedia 143 (2017) 611–616
2 Silas Wan / Energy Procedia 00 (2017) 000–000

2. Business Drivers for Asset Performance Management

Motivation to improve asset performance is usually a result of changing corporate strategy or operating
environment (Hadjsaid and Sabonnadiere, 2012). Below is a list of some of these drivers.

2.1. Pressure to increase profit in flat and volatile economy

The global GDP growth worldwide is 2.5% in 2016. Most organizations including power grid business owners
target their growth at a much higher rate. New and innovative solutions are required to achieve this above-average
growth while mitigate the operational risks.

2.2. Demand for agility in asset operations

Industrial developments such as renewable integration and demand response systems requires the role of grid asset
owners to be more and more agile. Additionally, power systems and the supporting human processes are becoming
more complex. A well-managed APM system will place useful asset data closer to the day to day consumers of such
data – operators and engineers.

2.3. Tighter regulation and increased compliance risk

Increasing maturity of regulators and awareness of environmental, economic impact of electricity generation and
transmission/distribution contribute to tighter rules and regulations. Asset owners are required to understand and
mitigate the risks throughout the lifecycle of their equipment. Future spending on capital and operational expenditure
(CAPEX and OPEX) also needs to be justified with increasing vigor.

2.4. Aging assets and increased operation risks

With nearly 20% of assets over the world near the end of life, careful decisions must be made regarding the operation,
maintenance and replacement decisions of these assets.

3. The Industrial Internet and Asset Performance Management

Many industrial plays including General Electric (GE) has invested ambitiously in digital technologies. The future
of energy industry is seen as a new value chain augmented and interconnected by digital technology, where both
power and information flow in multiple directions, all actors adding value.

Maximization of reliability and asset value, as key parts of the holistic view of the electricity supply chain, are the
strategic objectives of Asset Performance Management. A key part of this objective is the optimization of maintenance
and asset replacement decisions, supported via the following processes:
 Collect asset data through sensors, data collection tools or from external databases
 Apply data through predictive and interventions models
 Apply a methodology for decision making covering both engineering and financial aspects.
 Make decisions that most benefit the organization as a whole

This paper now explores the various technologies and digitalization techniques available today and how it relates
to asset performance management:
 Silas Wan et al. / Energy Procedia 143 (2017) 611–616 613
Author name / Energy Procedia 00 (2017) 000–000 3

3.1. Mobile computing applications

Data collection is the first step of the APM process. Online condition sensors are becoming more and more
widespread in the electrical energy industry, but a large amount of asset condition data is still collected by periodic
inspections and testing.

Mobile applications, or ‘Apps”, have been incredibly popular. One single mobile device can support several
applications, ranging from work orders management, collection of field data including pictures, safety processes,
documentation management and timesheets. Key benefits are standardization of data collection, immediate
digitization, availability of key information to operators and the associated time and cost reduction.

Figure 1: The tablet application from GE is used for capturing field data from physical inspections

3.2. Connection of online condition monitoring devices

Critical assets in the grid requires more than periodic inspections. In these cases, continuous condition monitoring
is required and data reported for faster and timely decisions. Many tools are available on the market, ranging from the
popular online dissolved gas analysis (DGA) devices to the advanced on-line partial discharge diagnostic systems.

A key element is to ensure the proper integration of these devices into the company’s overall communication and
system architecture. Digital technology such as Industrial Internet can be leveraged to minimize the total cost of
infrastructure ownership while delivering the value and data to the customer.
614 Silas Wan et al. / Energy Procedia 143 (2017) 611–616
4 Silas Wan / Energy Procedia 00 (2017) 000–000

3.3. Integration of multiple data sources

Field Inspection data and real time condition monitoring are not the only sources of useful information. Further
sources need to be considered including data from real time grid control systems, where useful information on asset
usage is stored, or from any kind of Data Warehouse / Historian. Enterprise Resource Planning (ERP) need to be
involved, especially when they can provide asset register information and asset financial information. The decisions
made within the APM system will also need to be forwarded to ERP system for work approval and scheduling.

This overall integration scheme is summarized below:

Figure 2: how APM can enhance the asset maintenance lifecycle

3.4. Flexible Asset Content & Analytics

To enable holistic decisions to be made, condition and other data need to be interpreted using meaningful models.
Since each organization has its own expertise and operational context, modelling flexibility is the key as suggested
by Agnier (2014) and Coullon (2014). Models must be built from understandable parameters, so that they can be
modified, added or removed by equipment experts without requiring programming skills.

At the minimum, the following functions need to be included in the asset models:
 Asset Health Indices
 Failure modes and effects, including ageing processes
 Probability of Failure
 Asset Criticality
 Risk Management
 Predictive evolution
 Lifecycle costs analysis

3.5. Decision support system

Once asset analytics are evaluated, the nature of intervention is the next decision to make. Predictive models and
intervention models are required to compare alternatives over multi-year periods, combining asset health, intervention
costs, residual asset value and accumulated risks in financial calculations to effectively select the best value actions
for money.
 Silas Wan et al. / Energy Procedia 143 (2017) 611–616 615
Author name / Energy Procedia 00 (2017) 000–000 5

4. Case Study and Return on Investment

Kahramaa, the Electricity and Water Utility of Qatar, is an early adopter of these digitalization techniques.

Kahramaa went through a period of rapid construction and found themselves in a situation where asset inspection
and maintenance have been neglected, with no reliable asset condition data over a large amount of their installed
assets. As a result, they look towards digitization as a way to manage their maintenance program with limited staff.

The “GTC501” project was initiated to obtain sound and informed maintenance and replacement recommendations
on their assets, based on data collected from their large fleet (Coullon and Rego, 2014). To achieve this, Kahramaa
with the help of GE:
 carried out a comprehensive condition monitoring program of their 11kV Distribution Network, while in
service, with various digital technologies including data collection via an iPad app
 established a central asset performance system hosting all condition data, to further capitalize information
and centralize decisions.

The overall scope consists of more than 11,000 medium voltage substations to be visited and assessed in 3 years.
These include assets such as medium voltage (MV) switchgear with various isolation techniques (Vacuum, Oil,
SF6), Oil immersed and dry type transformers, and low voltage (LV) panels.

This information is consolidated at various levels in modern, intuitive dashboards that can be used effectively by all
departments as shown below:

Figure 3: Health Summary dashboard shows the candidates for replacement, and the critical+urgent needs for maintenance actions.

Return on investment (ROI) is calculated using formula that was discussed and agreed with customer.
On the cost side, the following are consolidated:
 cost of the digitization and services
 cost of the recommended repairs actions
 cost of the replaced assets
 cost of unexpected failures

On the value side, the benefits are essentially obtained from avoided failures:
 value of preserved megawatt hour (MWh) supply.
 value of preserved assets.
 value of preserved service to Very Important Customers (VIP).

The overall conclusion of this advanced digitalization program is impressive:

 more than 50 % in reduction of asset failures
 182% net benefits generated against the overall costs listed above.
616 Silas Wan et al. / Energy Procedia 143 (2017) 611–616
6 Silas Wan / Energy Procedia 00 (2017) 000–000

5. Conclusion and Recommendation

Digital Transformation is the next step to unlock hidden efficiencies of industrial organisations. Following other
industries, the electrical segment is now moving along this direction. Key drivers are:
 Financial pressure forcing organisations to explore new areas of productivity
 Regional competitive pressures require organisations to demonstrate better quality of services
 Companies are looking for sound directions to improve operations and processes, and consider ISO55K as
a framework of choice to improve their management system.

Specifically, Asset Performance Management via ditigization is today an available solution, generating rapid and
impressive returns via proper definition of maintenance priorities and sound decisions on asset replacement.

This requires comprehensive industrial knowledge from the service provider, including:
 understanding of customer’s business and operational risks.
 understanding customer motivations.
 deep knowledge of primary equipment.
 data and model management skill.
 industrial communications, digital sensors and IT integration skills.
 experience equipment assessment, maintenance etc using well-structured approach and methodology.

Within organizations, the digital transformation will face new challenges and these needs to be addressed by:
 increasing awareness of new digital technologies available.
 increasing skills of the workforce through smart use of technology and partnership.
 revisiting work processes.
 revisiting IT architectures and overall strategy.
 revisiting supplier relationships and to move toward partnerships models.

References

[1] Nouredine Hadjsaid and Jean-Claude Sabonnadiere. (2012). “Smart Grids”. (Chapter on Asset Management by Jean-Louis Coullon) . Hoboken:
Wiley, 99-102. http://eu.wiley.com/WileyCDA/WileyTitle/productCd-1848212615.html.

[2] Jean-Michel Agnier. (2014). “Condition Parameters Included in Health Index.” Contribution to Study Committee A2, CIGRE 2014, Paris,
France.

[3] Jean-Louis Coullon. (2014). “Analytics for Effective Asset Management.”. Contribution to Study Committee A2, CIGRE 2014, Paris, France.

[4] Jean-Louis Coullon and Navin Rego. (2015). “Flexible Analytics for Management of Grid Assets” Journal of Energy and Power Engineering 9
(2015) 411-416