The practical application of life cycle costing to the design of power systems

The designer of any new power system-be it generating plant, a transmission re-enforcement or an extension to a distribution system, needs to be confident that the option selected for implementation has been carefully considered against a range of criteria. These criteria are likely to include high reliability, low maintenance and running costs, minimal deleterious effects on current assets and low environmental impact with the need to provide the new asset at the lowest possible cost. To assist in understanding the relationship of the often conflicting criteria on the solution as a whole a total cost model can be used. A total cost model provides the designer with the tool to prepare a life cycle costing for each option being considered. The author demonstrates how such an optimisation can be tackled and how difficulties (i.e. poor data) can be overcome. Finally, an application of life cycle costing, using a commercially available cost optimisation tool is shown.