Research On The Application Of Life Cycle Management Theory In Equipment Selection Of Substation Construction Project

Transformation equipments undertake the mission of transmission, distribution as well as the safe and stable operation of power grids. They are important assets of power supply enterprises, which also affect the cost and benefits of the enterprises. This article introduces the concept and development of The Life Cycle Cost(LCC) Management, and its application in the electric power enterprise of China. Combining the characteristics of the various stages of substation cost, analyzes the content and features of the components of substation's LCC, determines LCC cost estimation formula, and proposes a LCC correction method based on the average operating years and average funding cost. According to the use of economic life, estimates equipment's cost in all stages and then calculates sensitivity of several important factors using LCC. At last, Advices are put forward.