Economic evaluation method for in-service substations based on LCC and asset wall theory
QI Xia
ZHANG Mengmeng
ZHANG Xiaoman
CHENG Xu
MA Qianxin
LIN Shan
ZHAO Zhenyu
Abstract：Substations are key components of the power system,and their operational efficiency and cost management directly impact the stability and safety of the power grid.This paper presents an economic evaluation model for operating substations based on Life Cycle Cost(LCC)theory and Asset Wall theory(AW).The model takes into account the operating costs,maintenance costs,and technology renovation costs of substations.By combining LCC theory with the Asset Wall model,it accurately predicts the future needs for equipment upgrades and renovations.The paper uses the Monte Carlo simulation method,which takes into account the random distribution of equipment lifespan,to forecast renovation costs.This model provides valuable decision-making support for substation equipment management and technological renovation.The study offers a new,integrated framework for long-term economic evaluation,advancing the use of life cycle cost management and asset health assessments,and provides practical guidance for improving substation management and cost efficiency.
Keywords：substationeconomic evaluationlife cycleasset wallMonte Carlo Method
Publication Date：2025-09-28
Online Publishing Date：2025-11-05(First online date of this platform, not the publication date of the document)
Pages：10( 45-54 )