Preventive Maintenance and Forced Outages in Power Plants in Korea

Tae-Woo Kim, Yenjae Chang, Dae-Wook Kim and Man-Keun Kim
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Tae-Woo Kim: School of Mechanical Engineering, Pusan National University, Pusan 46241, Korea
Yenjae Chang: School of Economic Sciences, Washington State University, Pullman, WA 99164, USA
Dae-Wook Kim: Department of Economics, Soongsil University, Seoul 06978, Korea

Energies, 2020, vol. 13, issue 14, 1-12

Abstract: Maintaining high facility reliability in power plants is essential to secure long-term electricity supply. This paper applies the survival analysis to the actual unit level power generation data in Korea to estimate the relationship between facility reliability and the preventive maintenance. Duration of generators between forced outages is used to measure plant reliability. the empirical analysis shows that preventive maintenance cost, planned outage for maintenance, use rate, and reserve margin lead to the longer duration of generators and, in turn, the lower forced outage rates. We uncover that the marginal benefit of the preventive maintenance cost is decreasing at an increasing rate. It indicates that the marginal benefit of the “current” maintenance cost is minimal. Results in the paper imply that power plants in Korea might be spending unnecessarily high maintenance costs considering already having world’s lowest forced outage rates.

Keywords: duration of generators; forced outage rate; Korea; preventive maintenance; survival analysis (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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