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ICOD DeploymentFinancial BenefitsEHT

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Financial AnalysisOperational data such as failure rates may vary from one utility to another. This analysis uses data published by industry organizations such as CIGRE and obtained from discussions with utilities and experienced consultants. It aims to demonstrate the benefits of using ICOD in a realistic way.Disconnect switches are strategic to an electric grid due to their direct influence on grid reliability. For our business case, assume that the utility has 32,000 disconnects installed and are distributed as follows:

VoltagesDistribution (%)Quantities735 kV5%1600230-315 kV 10%3200120-161 kV 20%640049-69 kV 5%160034 kV and less60%19200Hypothetical Utility SavingsEHT

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2Financial AnalysisOut of the 32 000 disconnects, assume 31.25% are motorizedDescriptionsAssumptions (%)Assumptions (Qty)Total amount of motorised mechanism31.25%10 000Amount of critical disconnectors10%3200Amount of critical disconnectors 735kV 3ph50%800Amount of critical disconnectors 315kV and below 1ph7.5%2400Amount of critical controls for disconnectors 735kV 3ph50%2400Amount of critical controls for disconnectors 315kV and below 1ph7.5%2400Total amount of critical controls15%4800Total amount of other important controls16.25%5200Hypothetical Utility SavingsEHT

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3Disconnect failure (location)Energy losses or outage MVADuration Min./Max.HoursLosses$735kV-Line departure-Transformers-Bus bars-Breakers1000/20005/24300k$ / 3M$-Inductance 735kV-Inductance 315kV150/3001505/485/4850k$ / 1M$50k$ / ,5M$-Synchronise Compensation6005/48200k$ / 2M$-Static Compensation3005/48100k$ / 1M$315kV-Line departure-Transformers-Bus bars-Breakers300/10005/48100k$ / 3M$Evaluation Table: Losses due to FailuresEHT

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4Disconnector failure (location)Energy losses or outage MVADuration Min./Max.HoursLosses$230-120kV-Line departure-Transformers-Bus bars-Breakers150/5005/4850k$ / 1,7M$-Backup 315kV-Backup 230kV-Backup 120kV-Backup 69kV-Backup 25kV500/1000100/25050/100225/10050/1005/245/245/245/245/24200k$ / 1,7M$30k$ / ,4M$20K$ / 200K$10k$ / 165K$20k$ / 165k$-Capacitor bank 315kV-Capacitor bank 230kV-Capacitor bank 120kV-Capacitor bank 25kV30010050/1005/105/485/485/485/48100K$ / 1M$35k$ / 300k$20k$ / 300k$20k$ / 30k$-Alternator25/3005/4810k$ / 1M$Evaluation Table: Losses due to Failures (continued)EHT

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5N.B. The disconnect failure rate may vary between utilities. The ICODs predictive and real time monitoring will reduce failure rates by identifying incipient faults DescriptionsAmountsCritical disconnectors susceptible of failing every year1%32 disconnectorsMinor/Major mean costs per failureMinor100k$/yrMajor1M$/yrMajor failure/total failure50%Total minor failures costs3,2M$/yrTotal major failures costs16M$/yr% of reduction thanks to ICOD50%Total gain per year9.6M$/yrFinancial Justifications Failure and Energy Loss ReductionEHT

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620% of the annual substation maintenance costs is allocated to disconnects. Using ICODs, the motorised disconnect maintenance becomes as follows: 1- ICOD supervision of operation, predictive and real time monitoring (70%)2- Thermography (20%)3- Visual inspection (10%)Financial JustificationReduced MaintenanceDescriptionsAmountsAnnual workload dedicated to disconnectors20 000 hrs/yr% allocated to motorised disconnectors (versus non motorised)40%Annual workload for motorised disconnectors8000 hrs/yr% of reduction thanks to ICOD70%Total time reduction5600 hrs/yrTotal reduction in $ (at 100$/hr)560 000$/yrEHT

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7Financial JustificationsReduction of the motorised DS mechanical failure rateDescriptionsAmountsFailure rate without ICOD1%Disconnectors failure rate reduction50%Failure rate with ICOD0.5%Replacement cost of parts50k$Advantage due to mechanical failure reduction800k$Assuming 32 DS failures per yearEHT

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8In addition to the substantial benefits of predictive and real time monitoring, the cost of an ICOD control is less than or comparable to the refurbishing of a conventional control.Refurbishing versus ICOD purchase comparisonDescription Conventional control mechanism costsDSC control mechanismDSVcontrol mechanismStocking and material handling of refurbished units (reception, expedition, etc.)1000$ (1d x 1 person)0$0$Disassembly (in the shop), recuperation, cleaning, tools2000$ (2d x 1 person)1000$1000$Refurbishing3000$ (Material)3000$ (3d x 1 person)9000$ 4000 $ (cabinet)11500$ 4000 $(cabinet)Project administration management, building, vehicle, etc2700$ (30% x 9000$)0$

0$Total 12 000$ 14 000$ 15 500$Financial JustificationsAdvantageous Replacement CostsEHT

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9ICOD System: Allows early detection of the developing failures and reduces repairsAllows better scheduling and minimizes outages and transmission lossesGains estimated due to a better scheduling: Greater than 100 000$/ yrGains estimated due to early detection:Greater than 60 000$ / yr

Financial JustificationsReduction of detection and intervention timeEHT

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10For a 735kV grid (rates from CIGRE)Failure rate of power transformers : Without ICOD = 0.003 / yrWith ICOD = 0.0027 / yrFailure rate of current transformers :Without ICOD = 0.005 / yrWith ICOD = 0.00425 / yr

Economies for the utilities for a 30 years period (for 800 disconnectors) :Power transformers : $27MCurrent transformers : $13M

Net gain: ~ 1.3M$/yearFinancial JustificationsAdvantages due to reduction of harmonics by 50%EHT

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11Financial JustificationMinimum Annual Gain with a Conservative 1% Failure RateDescriptions DSC DSV Preventive maintenance time reduction $560 000,00$560 000,00Energy losses reduction $9 600 000,00$9 600 000,00Mechanical failure rate reduction$800 000,00$800 000,00Just in time maintenance$100 000,00$100 000,00Reduction by 20% of detection and intervention time $60 000,00$60 000,00Reduced equipment and grid degradation by decreasing harmonics $0,00$1 300 000,00EHT

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12Financial JustificationAssumption of ICOD deploymentDescriptionDSLDSCDSV735kV Critical0 unit0 unit2400 units735kV Important0 unit2400 units0 unit315kV (or less)Critical0 unit2400 units0 unit315kV (or less )Important2800 units0 unit0 unitTotal 2800 units4800 units2400 unitsEHT

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13Financial JustificationsICOD System InvestmentConservative failure rate of 1%

Investment:2800 DSL units for 8 100 $4800 DSC units for 14 000 $2400 DSV units for 15 500 $ Total Investment127 080 000$Total Annual Gain 22 820 000$Payback : 5.6 yearsEHT

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14Thank You

Energy HT International Inc.Quebec Canadawww.energieht.com

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