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Component replacement analysis for complex electricity distribution configurations

A new component replacement analysis method to solve asset replacement problems for complex electricity distribution systems is developed. In the present model a Taylor series expansion is used to approximate the associated opportunity cost for each component in the system. The method is based on an iterative dynamic programming and integer programming methods to obtain optimal system-level component replacement schedules with the objective of minimizing the total Net Present Value of unmet demand, maintenance and purchase costs. The Method is applied to the Dual Element Spot Network (DESN) configuration which is one of the most commonly used by the power industry.