Optimisation in Network Structured Asset Management

Nedjoua B.

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Optimisation in Network Structured Asset Management

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Abstract

This report considers the role of optimisation in the asset management of a large distribution network. In particular, we look at how to determine the optimal policy for project release. Projects relating to replacement of existing assets and network re-design may be prioritised given capital rationing and/or performance improvement requirements. We focus on maintenance and replacement of a large distribution network (network structured system) and consider the application to electricity distribution networks. The electricity companies who own the UK electricity distribution networks are under pressure to provide a high quality supply to customers at minimum cost. For this particular problem a zero-one integer linear programming model is proposed for selecting an optimal project portfolio, based on the objectives and constraints of the network owner. The modelling approach described in this study would extend to the financial investment appraisal of capital projects for a broad range of manufacturing and energy related industries such as power generation, refining and water supply.

Chapter 1: Introduction
1. Background
2. Optimisation in network asset management
3. Aim of research
4. Approach
5. What we need
Chapter 2: Asset management within the UK electricity industry
1. Overview of UK electricity system
2. Historical evolution of electricity in the UK
3. The main arguments for privatisation
4. The costs and benefits of the restructuring and privatisation of the U.K. electricity supply
5. The network asset management framework
6. Distinction between 'Refurbished' and 'Upgraded'
Chapter 3: Replacement models for network asset management
1. Definition of the model
2. A capital rationing model
3. Definitions
4. Construction of the model
5. Objective function
6. Solution of the model
7. Modelling approaches under uncertainty
8. Stochastic programming
9. Multiple criteria decision making (MCDM) approaches
Chapter4: Conclusions and remaining issues
References

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[...] Therefore the average performance of the whole network composed of circuits: Where is the number of consumers in circuit . represents the average performance of consumers in circuit in year Where : the number of interruptions per 100 consumers if we don't release any project in circuit . : the number of interruptions per 100 consumers after the completion of the project in circuit . Therefore if we do not release any project in circuit in year or if we release at least one project in circuit in year . [...]

[...] Moreover, the presentation of real problems in asset management may lead to large-scale problems. Further work needs to be done to determine efficient solution methods for this purpose. A multi-decomposition approach is discussed in Li and Haimes (1992) applied to optimal maintenance related decision making for deteriorating water distribution systems. Also another method for large-scale model is detailed in Winston (1994). Decision support system A review of other decision support systems (DSS) which can be useful in developing an application using Visual Basic language and large scale Solver in Excel as interface (Gasemzadeh and Archer, 2000). [...]

[...] Also it contains the work that could be done in the future and personal comments base on the research done on possible strategies to improve network asset management within the electricity distribution industry. It is hoped that this study will provide some input to electricity industry developments and related research, and that the network owner will focus on decision-making rather than on technical design considerations. As a personal postlude this study is a pilot investigation to gain insight to our research using different techniques in operational research. [...]

[...] Optimisation in network asset management The owners of the network structured asset management problems are facing the pressure of providing a high quality of service within the resources allocated. In the past their task was only to expand networks to connect the whole population: for example electricity networks water, road, gas networks. But now the focus is on the quality of service and avoidance of asset deterioration. In particular, the information that is shown in the figure shows the importance of improving the quality of service (performance improvement) in electricity industry. [...]

[...] The network asset management framework Due to the size and age of networks, the investment in the replacement and maintenance of networks is high and efficient management of the networks and their assets is crucial for profitability. Therefore the management of a network requires a long-term view of issues such as: the consequences of network failures; progress in network technology; and the development of demand (Scarf and Martin, 1999). The decision elements in the network asset management framework are: Project planning and release: for the most part, this research concentrates on project planning and release, and looks at how capital investment can be managed to maximise share-holder wealth or network performance while meeting certain regulatory and budgetary constraints. [...]

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