ICOD DeploymentFinancial Benefits

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Financial Analysis

– Operational data such as failure rates may vary from one utility to another. This analysis uses data published by industry organizations such as CIGRE and obtained from discussions with utilities and experienced consultants. It aims to demonstrate the benefits of using ICOD in a realistic way.

– Disconnect switches are strategic to an electric grid due to their direct influence on grid reliability. For our business case, assume that the utility has 32,000 disconnects installed and are distributed as follows:

Voltages Distribution (%) Quantities

735 kV 5% 1600

230-315 kV 10% 3200

120-161 kV 20% 6400

49-69 kV 5% 1600

34 kV and less 60% 19200

Hypothetical Utility Savings

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Financial Analysis

Out of the 32 000 disconnects, assume 31.25% are motorized

Descriptions Assumptions (%)

Assumptions (Qty)

Total amount of motorised mechanism 31.25% 10 000

Amount of critical disconnectors 10% 3200

Amount of critical disconnectors 735kV 3ph 50% 800

Amount of critical disconnectors 315kV and below 1ph 7.5% 2400

Amount of critical controls for disconnectors 735kV 3ph 50% 2400

Amount of critical controls for disconnectors 315kV and below 1ph 7.5% 2400

Total amount of critical controls 15% 4800

Total amount of other important controls 16.25% 5200

Hypothetical Utility Savings

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Disconnect failure (location)

Energy losses or outage MVA

Duration Min./Max.Hours

Losses$

735kV-Line departure-Transformers-Bus bars-Breakers

1000/2000 5/24 300k$ / 3M$

-Inductance 735kV-Inductance 315kV

150/300150

5/485/48

50k$ / 1M$50k$ / ,5M$

-Synchronise Compensation

600 5/48 200k$ / 2M$

-Static Compensation 300 5/48 100k$ / 1M$

315kV-Line departure-Transformers-Bus bars-Breakers

300/1000 5/48 100k$ / 3M$

Evaluation Table: Losses due to Failures

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Disconnector failure (location)

Energy losses or outage MVA

Duration Min./Max.Hours

Losses$

230-120kV-Line departure-Transformers-Bus bars-Breakers

150/500 5/48 50k$ / 1,7M$

-Backup 315kV-Backup 230kV-Backup 120kV-Backup 69kV-Backup 25kV

500/1000100/250

50/100225/100

50/100

5/245/245/245/245/24

200k$ / 1,7M$30k$ / ,4M$

20K$ / 200K$10k$ / 165K$20k$ / 165k$

-Capacitor bank 315kV-Capacitor bank 230kV-Capacitor bank 120kV-Capacitor bank 25kV

300100

50/1005/10

5/485/485/485/48

100K$ / 1M$35k$ / 300k$20k$ / 300k$20k$ / 30k$

-Alternator 25/300 5/48 10k$ / 1M$

Evaluation Table: Losses due to Failures (continued)

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N.B. The disconnect failure rate may vary between utilities.

The ICOD’s predictive and real time monitoring will reduce failure rates by identifying incipient faults

Descriptions Amounts

Critical disconnectors susceptible of failing every year 1% 32 disconnectors

Minor/Major mean costs per failureMinor 100k$/yr

Major 1M$/yr

Major failure/total failure 50%

Total minor failures costs 3,2M$/yr

Total major failures costs 16M$/yr

% of reduction thanks to ICOD 50%

Total gain per year 9.6M$/yr

Financial Justifications – Failure and Energy Loss Reduction

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– 20% of the annual substation maintenance costs is allocated to disconnects.

– Using ICODs, the motorised disconnect maintenance becomes as follows: • 1-    ICOD supervision of operation, predictive and real time monitoring (70%)• 2-    Thermography (20%)• 3-    Visual inspection (10%)

Financial JustificationReduced Maintenance

Descriptions Amounts

Annual workload dedicated to disconnectors 20 000 hrs/yr

% allocated to motorised disconnectors (versus non motorised) 40%

Annual workload for motorised disconnectors 8000 hrs/yr

% of reduction thanks to ICOD 70%

Total time reduction 5600 hrs/yr

Total reduction in $ (at 100$/hr) 560 000$/yr

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Financial JustificationsReduction of the motorised DS mechanical failure rate

Descriptions Amounts

Failure rate without ICOD 1%

Disconnectors failure rate reduction 50%

Failure rate with ICOD 0.5%

Replacement cost of parts 50k$

Advantage due to mechanical failure reduction 800k$

Assuming 32 DS failures per year

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– In addition to the substantial benefits of predictive and real time monitoring, the cost of an ICOD control is less than or comparable to the refurbishing of a conventional control.

– Refurbishing versus ICOD purchase comparison

Description Conventional control mechanism costs

DSC control mechanism

DSVcontrol mechanism

Stocking and material handling of refurbished units (reception, expedition, etc.)

1000$ (1d x 1 person) 0$ 0$

Disassembly (in the shop), recuperation, cleaning, tools

2000$ (2d x 1 person) 1000$ 1000$

Refurbishing 3000$ (Material)3000$ (3d x 1 person)

9000$ 4000 $ (cabinet)

11500$ 4000 $(cabinet)

Project administration – management, building, vehicle, etc

2700$ (30% x 9000$) 0$ 0$

Total ≈ 12 000$ ≈ 14 000$ ≈ 15 500$

Financial JustificationsAdvantageous Replacement Costs

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– ICOD System:

• Allows early detection of the developing failures and reduces repairs

• Allows better scheduling and minimizes outages and transmission losses

– Gains estimated due to a better scheduling: Greater than 100 000$/ yr

– Gains estimated due to early detection:

Greater than 60 000$ / yr

Financial JustificationsReduction of detection and intervention time

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For a 735kV grid (rates from CIGRE)

Failure rate of power transformers : Without ICOD = 0.003 / yr With ICOD = 0.0027 / yr

Failure rate of current transformers : Without ICOD = 0.005 / yr With ICOD = 0.00425 / yr

Economies for the utilities for a 30 years period (for 800 disconnectors) : Power transformers : $27M Current transformers : $13M

Net gain : ~ 1.3M$/year

Financial JustificationsAdvantages due to reduction of harmonics by 50%

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Financial JustificationMinimum Annual Gain with a Conservative 1% Failure Rate

Descriptions DSC DSV

Preventive maintenance time reduction $560 000,00 $560 000,00

Energy losses reduction $9 600 000,00 $9 600 000,00

Mechanical failure rate reduction $800 000,00 $800 000,00

Just in time maintenance $100 000,00 $100 000,00

Reduction by 20% of detection and intervention time

$60 000,00 $60 000,00

Reduced equipment and grid degradation by decreasing harmonics

$0,00 $1 300 000,00

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Financial JustificationAssumption of ICOD deployment

Description DSL DSC DSV

735kV Critical 0 unit 0 unit 2400 units

735kV Important 0 unit 2400 units 0 unit

315kV (or less)Critical

0 unit 2400 units 0 unit

315kV (or less )Important

2800 units 0 unit 0 unit

Total 2800 units 4800 units 2400 units

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Financial JustificationsICOD System Investment

• Conservative failure rate of 1%

• Investment:

– 2800 DSL units for 8 100 $– 4800 DSC units for 14 000 $– 2400 DSV units for 15 500 $

Total Investment 127 080 000$

Total Annual Gain 22 820 000$

Payback : 5.6 years

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Thank You

Energy HT International Inc.

Quebec Canada

www.energieht.com

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