Applications of Life Cycle Cost Theory in Decision-Making of Investment for Distribution Transformers Renovation

Abstract

It is for a long time that in the renovation of distribution network the power enterprises pay attentions to initial renovation investment and the fact that the proportion of the cost for operation and maintenance of power equipments in the life cycle is much greater is often neglected,so it makes the active capital for the renovation of distribution equipments not fully utilized.For this reason,a life cost cycle(LCC) model of transformers in medium-and low-voltage distribution network,in which the initial investment cost,operation and maintenance cost,interruption cost and scrap values of equipments are taken into account,is built,and it is proposed that in the renovation of distribution transformers the type selection of distribution transformers should conform to the principle of minimum LCC.Calculation results of an actual engineering example show that the proposed method is available.Using LCC investment decision analysis method,the total investment cost for distribution transformers in the life cycle is optimized,so the proposed method is available for reference to the construction and renovation of distribution networks in future.