Asset management for infrastructures in fast developing countries

Abstract

Risk Based Asset Management (RBAM), the rationalization of decision making on physical assets, has been a rising profession for infrastructures in the Netherlands. Many companies report cost reductions and quality improvements it the same time. This makes one wonder whether Asset management could be of any help for fast developing countries, as they seem to struggle with both aspects. To test this, the asset management framework was applied to a specific case, the electricity grid of India. Based on the current understanding of asset management systems, a fast developing electricity infrastructure runs the risk of outages, high losses (technical an commercial), many incidents and perhaps riots over the quality. The electricity grid in India shows all of them to an extent that is hardly imaginable. An explanation (based on the asset management framework) might be found in the focus on hardware. As a result the asset management system is out of balance and prone to failure. One alternative might be a bottom up approach for emergency power, potentially expanded into a village startup kit. Even though it is not the best option in the long run, it is in balance by nature. And as India might be struggling with the reliability for the next 20 years, it is a comforting thought that the backup power would be properly organized.