Comparative life cycle cost analysis of hardening options for critical loads

In order to determine the most cost effective option among hardening options of power systems, the direct monetary benefits should be evaluated above all other things. Therefore, this paper presents a life-cycle cost model which describes total monetary costs experienced in annual time increments during the project with consideration for the time value of money. In addition, to minimize the risks associated with estimated cost errors due to uncertainties of input data, the stochastic input data are considered. Using the Monte-Carlo method, the probabilities and cost ranges in the case study can be predicted, leading clearer and better decisions to select the cost effective hardening option.