Electrical obsolescence management: How to spend $1B efficiently

An engineering team at a large Oil & Gas company was tasked to address the alarming trend of increasing capital expenditure required to manage its 2 main challenges: obsolescence and aging of electrical equipment in over 1000 electrical substations. It was forecasted that nearly $1B will be required over the next ten years to replace obsolete electrical equipment. Reliability and cost efficiency in power systems operation equates to zero incidents and unplanned outages as a result of equipment failure. However, it is natural for electrical switchgear and control gear to degrade over time. If they remain in operation long enough, failure is inevitable. There are numerous challenges with vintage electrical equipment that includes maintenance issues, personnel training, and electrical safety. Ultimately, old and obsolete systems pose increased risks. Given that nearly 50% of electrical equipment in the company is at least 30 years old, the risk posed by obsolete equipment must be managed.