More than 30% of distribution networks in Europe are over 40 years old. The failure of one the many critical assets which are reaching the end of their useful life could cause safety hazards, prolonged service restoration times, loss of regulatory incentives, and substantial financial costs for the DSO. Therefore, refurbishment or replacement of these assets becomes necessary. In response to this challenge, the Portuguese DSO E-REDES replaced traditional risk analysis models used for investment prioritisation with an innovative risk monetisation model.
The model combines information on the probability of failure, determined by the assets’ condition, with the estimated cost of the environmental, safety, financial and performance consequences of failure. The model covers most of E-REDES’ critical assets, which includes 70’000 km of overhead lines, 15’000 km of underground cables, and 787 power transformers. The new methodology already supported several uses, including the construction of investment scenarios for the 2026-2030 period.
