Study Of Applicating Life Cycle Cost In Substation

Along with social progress and the country’s rapid economic development,energy demand substantially increased, the state has increased the powerconstruction investment. During the time of "12th Five-Year Plan" the country’selectricity industry investment will reach5.3trillion yuan, increased by88%thanthe "eleventh five-year plan". However, in this rapid growth, there are manyproblems in the power grid construction due to the limitations of our currentelectricity investment system and operation management mechanism. The Powerenterprise began to turn their attention to the life-cycle cost management in order toform a management system which adapts to the current development situation.Life Cycle Management (LCM) is a management philosophy and method thatminimizes the life cycle cost of the equipment or the system from long-termeconomic benefits. It fully accounts of the cost occurred in the whole process, fromplanning, design, manufacture, purchase, installation, operation, maintenance,alteration, updating, until scrapped.Through analysis of the characteristics of the substation LCC, the methodapplication LCM to optimize the planning and design of the substation was proposedin the essay proposed. The content covers: the substation economic capacity researchbased on LCC, the optimization of distribution design based on LCC, equipmentLCC research. The method layer gradually expands the LCC analysis from theoverall planning and design to the specific design of substation and then tosubstation equipment selection. It achieved macroeconomic adjustment, phasedmanagement and feedback mechanism. It is of practical significance to improve thesubstation asset management, improve substation reliability, as well as effectivelylower the life cycle cost of substation. Conclusions are as follows:(1) Successfully applied LCC theory to substation design, and established asubstation LCC estimation model including cost breakdown and substation constitutedecomposition. It divides substation constituent into four parts, thereof the primaryequipment, secondary equipment, civil engineering and other. And it selects theequipment that closely related to substation to study and model. the engineering lifecycle cost. The model is of practical significance that is workable and easy toimplement. It can be promotion in the field of substation design. (2) Propose a method to optimize substation planning and design based on LCM.The content covers: the substation economic capacity research based on LCC, theoptimization of distribution design based on LCC, equipment LCC research. Themethod layer gradually expands the LCC analysis from the overall planning anddesign to the specific design of substation and then to substation equipment selection,providing a guideline for the LCC design of the substation engineering.(3)Applying the method refer to the conclusion (2)in a substation project inChangsha, the application results is in line with theoretical expectations, whichverifies the method can reduce the substation life cycle costs effectively, improvesystem reliability and resource utilization.