Influence of investment on failure rate in power distribution systems based on the value of assets

Mohammadhasan Hedayati, Mohammad Taghitahooneh, Aidin Shaghaghi and Reza Dashti

International Journal of Reliability and Safety, 2024, vol. 18, issue 2, 209-230

Abstract: One of the important tasks of electricity distribution companies is to provide reliable electricity to all subscribers under their coverage. They must have proper management of their financial resources and their distribution. This asset management, in addition to helping to adjust and grow the technical indicators of the system, which increases the efficiency of the network, adds to the reliability, resilience and fair distribution of outages in the area covered by the network. In this article, we will analyse the value of network assets according to the budgeting rate of repairs and development. Also, the potential failure rate, i.e., the reduction in the financial value of a network's assets during one year caused by the delay in funding, will be expressed. This analysis helps us to know the impact of budgeting on the value of network assets during the lifetime of the equipment and to obtain the necessary budget limits for the fair distribution of financial resources in developed countries and the fair distribution of blackouts in developing countries. Also, the new depreciation rate obtained helps the decision-makers in electricity distribution systems to have proper planning and new policies to achieve the organisation's goals and increase customer satisfaction.

Keywords: asset management; power distribution systems; failure rate; budgeting rate. (search for similar items in EconPapers)
Date: 2024
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