Development of generic life cycle costing model for analysis of power transmission lines

A major portion of the investment costs in the present day power transmission systems is due to the cost of equipment and construction process. In general the power transmission utilities perform the task of construction and cost management. Initially this process is confined to capital costs of equipment, right of way and construction costs, neglecting the cost of losses, faults, repair times, operation and maintenance. Recent studies indicated that these costs prove to be significant portion of the total investment cost. As a result the utilities in the recent years are drawing greater attention towards performing life cycle costing studies for cost management and decision making. In this regard it is essential and extremely important that significant research has to be carried out in understanding the principles of life cycle costing methodology and its applicability to cost analysis of transmission lines. In this study, life cycle costing methodology has been performed using net present value analysis on a range ofoverhead and underground power transmission lines and the results are analyzed.