Valuation as a comprehensive approach to asset management in view of emerging developments

Especially in today’s environment for electric utilities and especially transmission and distribution companies, asset management is becoming ever more important given a multitude of investment decisions partly driven by the energy transition, and also of maintenance and end-of-life replacement decisions driven by aging assets. Project prioritization within an asset management portfolio and plan is a key challenge, given that different risks are usually measured on different scales. But asset risk can be given a monetary value when the probability and consequence of asset failure can be quantified. This monetary value of different types of asset-related risks allows these risks to be compared on a common basis, and facilitates prioritization of investments to mitigate asset related risks.…