EHT
INTERNATIONAL
ICOD Deployment
Financial Benefits
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INTERNATIONAL
Financial Analysis
Hypothetical Utility Savings
– 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
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Financial Analysis
Hypothetical Utility Savings
Assumptions
(%)
Assumptions
(Qty)
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
16.25%
5200
Descriptions
Total amount of motorised mechanism
Total amount of other important controls
Out of the 32 000 disconnects, assume 31.25% are motorized
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Evaluation Table: Losses due to Failures
Disconnect failure
(location)
735kV
-Line departure
-Transformers
-Bus bars
-Breakers
Energy losses or
outage MVA
Duration Min./Max.
Hours
Losses
$
1000/2000
5/24
300k$ / 3M$
150/300
150
5/48
5/48
50k$ / 1M$
50k$ / ,5M$
-Synchronise
Compensation
600
5/48
200k$ / 2M$
-Static Compensation
300
5/48
100k$ / 1M$
300/1000
5/48
100k$ / 3M$
-Inductance 735kV
-Inductance 315kV
315kV
-Line departure
-Transformers
-Bus bars
-Breakers
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Evaluation Table: Losses due to Failures (continued)
Disconnector failure
(location)
230-120kV
-Line departure
-Transformers
-Bus bars
-Breakers
Energy losses or
outage MVA
Duration Min./Max.
Hours
Losses
$
150/500
5/48
50k$ / 1,7M$
500/1000
100/250
50/100
225/100
50/100
5/24
5/24
5/24
5/24
5/24
200k$ / 1,7M$
30k$ / ,4M$
20K$ / 200K$
10k$ / 165K$
20k$ / 165k$
-Capacitor bank 315kV
-Capacitor bank 230kV
-Capacitor bank 120kV
-Capacitor bank 25kV
300
100
50/100
5/10
5/48
5/48
5/48
5/48
100K$ / 1M$
35k$ / 300k$
20k$ / 300k$
20k$ / 30k$
-Alternator
25/300
5/48
10k$ / 1M$
-Backup 315kV
-Backup 230kV
-Backup 120kV
-Backup 69kV
-Backup 25kV
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Financial Justifications – Failure and Energy Loss Reduction
Descriptions
Critical disconnectors susceptible of failing every year
Minor/Major mean costs per failure
Amounts
1%
32 disconnectors
Minor
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
Total gain per year
50%
9.6M$/yr
The ICOD’s predictive and real time monitoring will reduce failure rates by identifying incipient faults
N.B. The disconnect failure rate may vary between utilities.
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Financial Justification
Reduced Maintenance
– 20% of the annual substation maintenance costs is allocated to disconnects.
– Using ICODs, the motorised disconnect maintenance becomes as follows:
•
•
•
123-
ICOD supervision of operation, predictive and real time monitoring (70%)
Thermography (20%)
Visual inspection (10%)
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 Justifications
Reduction 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
Assuming 32 DS failures per year
800k$
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Financial Justifications
Advantageous Replacement Costs
–
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
DSV
control
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$
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Financial Justifications
Reduction of detection and intervention time
– 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
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Financial Justifications
Advantages due to reduction of harmonics by 50%

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
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Financial Justification
Minimum Annual Gain with a Conservative 1% Failure Rate
Descriptions
Preventive maintenance time reduction
DSC
DSV
$560 000,00
$560 000,00
$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
$60 000,00
$60 000,00
$0,00
$1 300 000,00
Energy losses reduction
Reduction by 20% of detection and
intervention time
Reduced equipment and grid degradation by
decreasing harmonics
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Financial Justification
Assumption 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 Justifications
ICOD 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
Total Annual Gain
Payback : 5.6 years
127 080 000$
22 820 000$
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Thank You
Energy HT International Inc.
Quebec Canada
www.energieht.com