Challenges

The probability of equipment failures in hydropower-generating facilities increases dramatically after 40 or 50 years of operation. Right now, the majority of plants in the world are at or beyond this critical point. Are you prepared for unexpected breakdowns, loss of production, and unbudgeted expenses?

Hydro-plant operators need to make many decisions as part of an overall life-cycle planning strategy. These range from major maintenance and spare-part purchases to instrumentation installations, rehabilitation, and equipment-replacement schemes. Generation and transmission companies need a tool that can evaluate equipment-intervention schemes, optimize investment timing and prioritize capital spending.

You're planning for the future. So your cost streams must include expenses associated with the risk that equipment components may fail. As equipment ages, the risk of wear-out failures increases exponentially and these risk costs become the dominant factor in the analysis.