Upcoming Role of Condition Monitoring in Risk-Based Asset Management for the Power Sector
نویسندگان
چکیده
The electrical power sector is stimulated to evolve under the pressures of the energy transition, the deregulation of electricity markets and the introduction of intelligent grids. In general, engineers believe that technologies such as monitoring, control and diagnostic devices, can realize this evolvement smoothly. Unfortunately, the contributions of these emerging technologies to business strategies remain difficult to quantify in straightforward metrics. Consequently, decisions to invest on these technologies are still taken in an ad-hoc manner. This is far from the risk-based approach commonly recommended for asset management (AM). The paper introduces risk-based management as a guiding principle for maintenance management. Then, the triple-level AM model (strategic, tactical and operational) as the foundation to define risk-based AM is described. Afterwards, two categories of risks, one triggered by technical stimuli and the other by non-technical stimuli are introduced. It is shown that the main challenge of managing risks with technical stimuli is to have the ability to understand the technical cause of failures, which is located at the operational level within the triplelevel AM model. One method to quantitatively understand the technical cause of failures is by means of condition diagnostic and monitoring technologies. Therefore, the aim of this paper is to clarify the potential contribution of condition diagnostic and monitoring technologies to risk-based decision making for the power sector. This paper shows that, in practice, the implementation of condition diagnostic and monitoring technologies is mainly driven by purely technical asset based considerations without evaluating the contribution to, for instance, risks. This paper provides a list of aspects in which condition diagnostic and monitoring may contribute to risk evaluation with technical stimuli. The listed aspects (which are: (1) asset specific condition data, (2) timely condition data and (3) predictive condition data) can be regarded as input for the probability of failure and as influencing input for the consequence of failure, hence benefiting quantitative risk studies and AM activities (such as condition assessment/ maintenance or replacement). Finally, these benefits can be evaluated afterwards in a risk-based AM planning stage, so that asset managers can justify investments on necessary technical improvements of condition monitoring systems.
منابع مشابه
Performance of Credit Risk Management in Indian Commercial Banks
For banks and financial institutions, credit risk had been an essential factor that needed to be managed well. Credit risk was the possibility that a borrower of counter party would fail to meet its obligations in accordance with agreed terms. Credit risk; therefore arise from the bank’s dealings with or lending to corporate, individuals, and other banks or financial institutions. Credit risk...
متن کاملHigher moments portfolio Optimization with unequal weights based on Generalized Capital Asset pricing model with independent and identically asymmetric Power Distribution
The main criterion in investment decisions is to maximize the investors utility. Traditional capital asset pricing models cannot be used when asset returns do not follow a normal distribution. For this reason, we use capital asset pricing model with independent and identically asymmetric power distributed (CAPM-IIAPD) and capital asset pricing model with asymmetric independent and identically a...
متن کاملImplications of the Imperfect Deposit Market Structure for Micro and Macro Discretionary Prudential Policies
The aim of this study is to theoretically investigate the role of the bank deposit market structure in how effective micro and macro prudential policies in determining the regulatory capital of banks in combination with monetary policy. To achieve this, a partial equilibrium analytical framework has been developed that includes rational economic entities and the possibility of contagion risk in...
متن کاملNoise Trading Approach of Capital Asset Pricing at Tehran Stock Exchange
Noise traders as one of the key elements of the market play a significant role in determining the market volatilities, returns, and stock market mispricing. Hence, this study attempts to scrutinize the role of noise trading in capital asset pricing. Therefore, by using daily data, samples including 14105 data of 200 companies listed on stock exchange were selected and noise trading index was es...
متن کاملFinancial Monitoring in the Bank as a Market Instrument in the Conditions of Innovative Development and Digitalization of Economy: Management and Legal Aspects of the Risk-Based Approach
The article examines foreign and domestic experience in organizing financial monitoring systems, systematizes the requirements for its implementation in Ukraine. The basic legal norms, enshrined in the joint directives of the European Parliament and of the Council of the EU, and underlying the national financial monitoring systems of the EU countries and Ukraine have been also analyzed. Taking ...
متن کامل