An Approach to Define the Criticality Parameter from Business Values in an Asset-Intensive Utility

An asset-intensive utility must manage risks with limited resources to achieve its objectives. The risk related to an in-service asset’s failure, or asset risk, is the primary consideration to be addressed. Asset criticality provides information about the consequences of an individual asset failure to the business. The business values define the parameters of asset criticality, for example, reliability, safety, environment, and finances. This paper provides a quantification of asset criticality in a vertically integrated electricity utility with a case study owned by PLN Indonesia. The quantification focuses on two criticality parameters: the consequence of an asset’s failure in terms of Energy Not Served (ENS) and Extra Fuel Cost (EFC). The case study comprises four interconnected power systems with thousands of individual generation units, power transformers, and transmission line segments. A software simulation calculated the ENS and the EFC by simulating an N1 failure on each individual asset. The result from the simulation was MW instant that later being converted into a Monetary unit per hour. The information about asset criticality helps the organization prioritize investment, operation and maintenance, and power system operation decisions.