Abstract
This report outlines a general framework for risk based reinvestment management for electricity distribution assets, and is one of the deliverables from the RISK DSAM project. The focus of the project and of this report is on reinvestments triggered by degradation of assets, but the methods and recommendations presented are relevant for reinvestments in general. The main recommendations can be summarised as follows: • Define relevant risk consequence categories and company objectives regarding reinvestments and use this as an input to reinvestment management. The link to maintenance management should be emphasised. • Establish a structured method for triggering and performing reinvestment analysis, including risk analysis and cost-benefit analysis • Obtain and use suitable data; expert opinion, statistics, and condition monitoring data • Document and learn; implement continual improvement Methods and recommendations will be further detailed in an upcoming continuation of this report: “A guide to risk based reinvestment management,” due Q2 2010. Corresponding reports concerning maintenance management are also in progress.