Life cycle cost analysis of substation automation implementation

This paper proposes a quantitative evaluation of the classic discussion on cost-benefit and risk management involved in the implementation of telecommunications networks for Substation Automation Systems (SAS). The goal is to find the optimal point for investing in quality and reliability in order to maximize the profitability of the project. Various IEC 61850 substation automation system (SAS) architectures are compared in terms of price, reliability, and their impacts in the power grid quality and cost of ownership of the project. The method used in this paper is the life cycle cost analysis (LCCA). It enables an objective decision of the topology options considering the high reliability requirements of SAS networks. This paper discusses how to make the best out of this new approach in protection and supervision of power systems.