Analysis of Online System Investment Decision Dependency on Customer Profile and Equipment Condition via Risk Approach

Author(s): Mohd Radzian Abdul Rahmana*, Mohd Fadzil Siama, Mohd Iqbal Ridwana, Rosila Senanb, Muhammad Azizi Abdul Rahmanb
Smart Grid Unit, TNB Research Sdn. Bhd. No.1, Lorong Ayer Hitam, Kawasan Penyelidikan Bangi, 47300 Kajang, Malaysia
b Asset Management Unit, Engineering Department, TNB Distribution Division, Jalan Timur, Petaling Jaya, Selangor, Malaysia
International Journal of Smart Grid and Clean Energy, vol. 1, no. 1, September 2012: pp. 40–46
ISSN: 2315-4462
Digital Object Identifier: 10.12720/sgce.1.1.40-46 

Abstract: Real-time online monitoring system and its analytics system for substation equipment is an important element of smart grid technology. However, proposals to invest in real-time online monitoring system are often turned down by the decision-maker due to the lack of economic model which act as a qualifier that determines whether the investment is worthwhile for the company and nation. In this paper, by deploying risk quantification methodology, visualized through decision tree structures, we propose that the investment of a sophisticated system for substation monitoring is dependent on customer segment profile and the condition of equipment. We present several scenarios that depict our argument on this matter.

Keywords: Online monitoring, investment decision, risk analysis, decision-tree, economic model, decision-making  

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