“Asset analytics” ― the key to next-generation smart grid asset management

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North America's electric power industry has roughly $300 billion in distribution assets, mostly scattered in the field. It will have to invest at least that much again over the next 10 to 15 years if it is to successfully integrate distributed renewables, switch to electric transportation, and build a smarter, more resilient distribution grid.

Shouldn't we be managing these expensive assets with science and precision?

Thanks to new advances, that important goal is now in reach. However -- blinded by the hype of smart meters and demand response -- some utilities may not be paying enough attention to next-generation asset management. Others may think it is still not possible.

I am here to suggest that most utilities already have the data they need to take asset management to the next level. They just need to turn it into actionable information. I’ll summarize below and then point you to places where you can learn more.

The problem with last-generation asset management

Free Webinar Next-Generation Asset Management Wednesday, Dec. 8 10:30 a.m. Pacific (1:30 p.m. Eastern) . Register now >>

Until recently, there was no way to know how much power was actually flowing through which equipment. Or to remotely monitor that gear. That forced asset managers to rely on intuition, averages and estimates. Or on expensive (sometimes even dangerous) physical inspections. As a result, utilities often overbuilt, just to be sure to have leeway in case the estimates were wrong.

The key to next-generation asset management

I’ve been following asset management trends for years, but I’ve been paying extra attention recently in preparation for an upcoming Webinar on next-generation asset management that features top practitioners from Hydro One, Toronto Hydro and Accenture. (The Webinar is free to our readers, by the way.)

I’m learning that most utilities already have plenty of data about their assets. Some comes from the back office. Some comes as a “side effect” of installing smart meters. And some comes from the sensors and monitors you can now obtain for transformers and other expensive gear.

To turn that raw data in to useful information, you must collect it, crunch it and portray it. Or to put it more prosaically, you must go through the phases of input, analysis and output.

1. Input. Pulling information from a variety of sources, some from the operational side (meters, monitors, sensors, mobile devices, IEDs, etc.) and some from the IT side (enterprise asset management, condition-based maintenance, etc.).

2. Analysis. First, crunching the input to perform "asset performance analysis." Then feeding the results into your asset planning and into simulations to inform your asset strategy.

3. Output. Creating reports, charts, graphics and tools for your users. Things like health dashboards, lifecycle costing and analysis, load profiles and trends, failure event analysis and more.

Results from next-generation asset management

When utilities such as Hydro One and Toronto Hydro blend data from back office and operations, they get some great results. They can:

·         Know the health of major assets in near real time

·         Know the actual load those assets are serving

·         Pinpoint problem assets before they cause trouble

·         Minimize O&M costs while simultaneously maximizing uptime

·         Scientifically value and prioritize projects and capital investments

Accenture’s Paul Yarka (one of our Webinar experts) says advanced asset management can even help with regulators. Many European and Canadian utilities are required to take a position on the health of their assets when making a business case. Now that some European entities own North American utilities, the practice may trickle down... er, trickle west... to the U.S. and Canada. Next-generation asset management gives you the precise information regulators appreciate -- information that makes it easier for them to justify and approve requested upgrades.

Don’t forget the people side

As much as I’m urging utilities to get up to speed in this new world of “asset analytics,” I don’t want you to forget the organizational issues. For instance, at Toronto Hydro, organizational innovations have been a big part of the early successes:

• Convening a grid modernization committee that includes operations and IT and asset management
• Showcasing results to stakeholders to build support for wide-scale rollouts
• Creating a "vendor sandbox" to entice technology companies to assist
• Recruiting help from universities

If you’re happy with intuition, averages and estimates as the basis for your asset management, then you don’t need to bother learning more. If you’d like to know where asset management is going next, we’ve listed some ways to get up to speed below. Please use the comment form to share:

·         Other utilities that are doing a good job (and yes, it is perfectly fine to nominate yourself)

·         Other places to learn more

·         Other strategies for improving asset management

Additional resources …

Free next-generation asset management Webinar featuring Accenture, Hydro One and Toronto Hydro

EPRI 2011 Asset Management Research Portfolio (PDF)

3rd Annual Asset Management for Energy & Utilities Conference, April 5-6, 2011, Toronto

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