Oct 2014
Electricity Transmission
Life Cycle Costing and Value Optimisation (ICase Award)
NIA_NGET0153
Complete
Oct 2014
Apr 2018
National Grid Electricity Transmission
Derrick Dunkley
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Network Innovation Allowance
None
Asset Management and Electricity Transmission Networks
£148,000.00
This project involves a PH student developing a literature review following external and internal stakeholder engagement which demonstrates the findings of the analysis of whole life value and life cycle costing and making recommendation to the business.

This project will create a consist approach to determine whole life value and life cycle costing and provide a benchmarking opportunity to establish how National Grid applies these techniques and methodologies. This will be achieved by evaluating and reviewing appropriate techniques currently used within National Grid to identify opportunities to enhance our knowledge and contribute to improving the way National Grid makes whole life value decisions.

The objective of this project include:-

  • Developing an approach which supports Whole Life Value methodology (WLV) including financial Life Cycle Costing incorporating CAPEX and OPEX spend across single asset replacement decisions or multiple assets in complex projects (schemes).
  • Investigate whether a whole life value decision making process can provide valuable insight into financial options.
  • Consistently incorporate consideration of risks.
  • Enable the financial assessment across the Life Cycle of changes to Policies and Technical Specifications.
  • Include carbon accounting and costing into the decision making process
The success criteria for the project include:-

  • Report on the state-of-the-art tools and techniques and challenges with a particular emphasis on quantitative and qualitative approaches.

  • Report detailing National Grid's activities in the context of leaders in the field

  • A two-year plan of defined techniques to be evaluated for use in the WLVF and assets to be evaluated at pilot and exemplar levels to demonstrate proof of concept. PhD Confirmation Report

  • Initial evaluation of qualitative techniques and their use in the NG framework.

  • Structured approach for integrating quantitative and qualitative techniques in decision-making WLVF.

  • Final literature review to demonstrate the outcome, results and findings from the project with proposals and recommendations to take forward.