Risk and asset management of transmission system in a reformed power sector

The transmission system is the back bone of the power system. A well planned, properly designed and well maintained transmission network can only provide reliable and quality power supply to customer. The transmission lines/underground cables, and various equipment/materials, like, transformers, reactors, circuit breakers, insulators, instrument transformers, surge arresters, conductors, etc. constitute major assets of a transmission system. Life cycle cost (LCC) consideration and strategies for optimizing the use of assets have become the part of asset management by utilities. Similarly in the evolving power market, risk management is also equally important. The management of assets, when they are in service/operation as well as when they have outlived their expected life/at the end-of-life, is a challenging task for all utilities in a reformed power sector. Today the residual life assessment (RLA) of vital equipment/material in service/operation, based on which run-refurbish-replacement (3 R's) decision can be taken, plays a vital role for investment decision and future planning of the entire power transmission system. A rational balance between risk of and investment in aging assets has to be maintained.