asset management - replacement criteria for distribution transformers

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DNV GL © 2013 16-01-2014 SAFER, SMARTER, GREENER DNV GL © 2013 NL-OPE-AM JW001 16-01-2014 Dr Jos Wetzer ENERGY ECI webinar 1 Replacement criteria for distribution transformers

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Page 1: Asset Management - Replacement Criteria for Distribution Transformers

DNV GL © 2013 16-01-2014 SAFER, SMARTER, GREENER DNV GL © 2013 NL-OPE-AM JW001

16-01-2014

Dr Jos Wetzer

ENERGY

ECI webinar

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Replacement criteria for distribution transformers

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DNV GL © 2013 16-01-2014

CONTENTS

Introduction

Modern asset

management

Transformer

lifetime issues

Transformer risk

management

Mitigation options

Decision making

process

Decision making

criteria

Conclusions

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INTRODUCTION

Recent Trends

– Increased societal dependence on

reliable energy supply

– Upcoming replacement due to

investments in 60s and 70s

– New diagnostic- and monitoring-

technology

– Introduction of risk based asset

management concepts

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Question Addressed

How have recent trends influenced transformer asset management,

and in particular transformer replacement decisions

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MODERN ASSET MANAGEMENT

Asset management has changed:

– from "doing the best we can"

– to "doing what is necessary to maintain the balance between

performance, cost and risk, given company business values“

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MODERN ASSET MANAGEMENT

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Business value: RELIABILITY

MODERN ASSET MANAGEMENT

Introduction of PAS55, based on risk management process:

– definition of business values (reliability, safety, etc)

– identification of hazards

– analyse hazard probability, impact and risk

– define degree of risk acceptance (appetite)

– decision based on risk score (urgency) and

on risk reduction effectiveness

Example distribution transformer

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Business value: SAFETY

Example of hazard

• Explosion of transformer (part) • Fire • Toxic byproducts

Preventive measures

• Maintenance • Monitoring • Replacement

Impact limitation

• Protection • Firewalls • Pressure relief • Safety measures

Business value: ENVIRONMENT

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LIFETIME ISSUE 1: DO TRANSFORMERS REACH THE END OF LIFE?

The most frequent causes of failure

o Tap changer failure, bushing failure (tap changers and bushings can be replaced)

Only few failures are caused by external causes

o Short circuit current, lightning strike, transient overvoltage

End of life is not based on age but on remaining life

o Only insulation winding paper shows irreversible degradation

o Remaining life from loading guide, furfural analysis or statistical analysis

The transformer end of life

o Determined by paper insulation degradation

o Depends on acceptable failure probability

o Is hardly ever reached

o Hardly ever reason for replacement

What are the main replacement criteria?

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LIFETIME ISSUE 2: WHAT ARE THE REASONS FOR REPLACEMENT?

Unacceptability of failure probability

Transformer losing functionality

Inability of the grid to deliver sufficient power, or inability to comply with government or SHE

regulations (acoustic emission, PCB presence in oil), due to

– Increasing grid demands (power rating)

– Changing environmental requirements

Transformer losing maintainability

– Spare parts are no longer available

– Insufficient knowledge, capacity or willingness to keep maintaining equipment.

– Too much diversity for efficient maintenance

Transformer showing operational issues

– Replacement by low-loss alternatives may outweigh losses

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(TRANSFORMER) RISK MANAGEMENT

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RISK ANALYSIS

• Hazard

• Probability

• Impact

RISK ASSESSMENT

• Inventory / problem

• Scenario’s / likelihood

• Alternatives

• Constraints

• Objectives

(cost, life expectancy)

• Decision

RISK TREATMENT

• Prioritization

• Selection &

postponement

• Planning

• Execution

Acceptance

Criteria

Portfolio

Management

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RISK MITIGATION (IN GENERAL)

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MITIGATION OPTIONS (TRANSFORMERS)

Adjust functional characteristics

– Increase power rating by enhanced cooling (insufficient power rating)

– Apply acoustic insulation (acoustic emission)

– Cleaning or containing the oil (PCB containment)

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Intensify monitoring and maintenance

Ensure performance; timely identify replacement

need, by:

– Higher frequency, additional maintenance

activities

– Apply transformer monitoring

– Health Index tools

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MITIGATION OPTIONS (TRANSFORMERS)

Refurbishment and life time extension

– Often transformers exceed design life (moderate loading, prevailing design margins)

– Lifetime may be extended by replacing critical parts

O&M policy and practice

– Load control (slow down degradation, buy time)

– Intensification of maintenance, keeping a supply of spare parts, contracting alternative

providers

Replacement

– Distribution transformers: end of life (or: increasing failure probability) is seldom a

replacement criterion on its own

– Other criteria include: lack of spare parts or service, losses, or inability to meet (future)

requirements

– Recent criterion: instrument to spread costs and manpower needed for large scale

replacement and delivery risks

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DECISION MAKING PROCESS

(Suspected) end of life (Suspected) capacity bottleneck

Failure probability and impact

Quantification of problem

Failure probability and impact

Opportunities for improvement

Replacement Life time extension

Opportunities for improvement

Replacement Life time extension

Option 1 Option 2Option 1 Option 2

Costs & Benefits Costs & BenefitsCosts & Costs &

Decision makingDecision making

Costs & Benefits

Decision Making

Replacement

Costs & Benefits

Reduce restraints

Uprating Upgrading Reduce load

Opportunities for improvement

Quantification of (future) limitations

Congestion probability and impact

Quantification of (future) limitations

Congestion probability and impact

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DECISION MAKING PROCESS

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For a more detailed treatment of transformer replacement see e.g.

APPLICATION NOTE TRANSFORMER REPLACEMENT DECISIONS ECI Publication No Cu0185, available from www.leonardo-energy.org Bruno De Wachter, November 2013

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DECISION MAKING CRITERIA

The key criteria in this decision process are:

– Failure probability and failure impact

– Risk profile (urgency) and appetite (acceptability)

– Effectiveness of different alternatives (prioritized action)

– Cost & return on investment of the different alternatives.

Aging population: additional constraints to manage replacement wave:

– Concentration of investments required

– Concentration of manpower required

– Production capacity of manufacturers

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CONCLUSIONS 1 DECISION PROCESS

Asset management decision taking is governed by company business

values, risk evaluation (probability and impact), risk appetite and risk

based urgency, and on the risk reduction capability of the mitigating

measures.

RISK BASED DECISION PROCESS RISK APPETITE

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CONCLUSION 2 DECISION CRITERIA

Transformer age is not a replacement criterion

End of life is a replacement criterion, but is hardly ever reached

– End of life is governed by loss of life / remaining life (load, temperature)

Common replacement criteria include

– Transformer losing functionality

– Transformer losing maintainability

– Transformer showing operational issues

Replacement alternatives include

– Adjusting functional characteristics

– Intensifying monitoring and maintenance

– Refurbishment and life time extension

– Adjusting O&M policy and practice

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CONCLUSION 3 HIGH POWER & DISTRIBUTION TRANSFORMERS

Replacement alternatives are often attractive for high power

transformers (high replacement cost).

Distribution transformers are often regarded as commodities, relatively

inexpensive, deliverable off stock. (Identification of) alternatives for

replacement need to be low cost, effective, efficient and standardized.

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CONCLUSION 4 DISTRIBUTION TRANSFORMER ALTERNATIVES

For distribution transformers, alternatives for one-to-one replacement

are only worthwhile if:

– Monitoring devices are integrated as low cost commodities

– Replacement need is monitored, analysed and prioritized on a fleet scale, and

supported by Health Indexing Tools

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DNV GL © 2013 16-01-2014

SAFER, SMARTER, GREENER

www.dnvgl.com

Thank you for your attention! Replacement criteria for distribution transformers

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