Life Cycle Cost Theory Research Articles

Enhancing Economic Efficiency: Analyzing Transformer Life-Cycle Costs in Power Grids

The transformer is a fundamental piece of equipment for power grids. The analysis and optimization of their life-cycle costs are of great importance to reinforce the economic efficiency of electrical networks. This paper constructs a comprehensive transformer life-cycle cost (LCC) model by fusing life-cycle cost theory with relevant transformer expenditure. It proceeds to examine the life-cycle cost aspects of the transformer, delving into its cost dynamics under various influencing factors, establishing interconnections between these factors and analyzing the cost relationship. By employing MATLAB software (Matlab 2021a) along with the whale optimization algorithm (WOA) this paper optimizes the objective function. Through this, it establishes the LCC model for 20 power transformers, obtaining the optimal objective function curve and the maximum value for LCC optimization of the transformer. Unlike previous research, this study adds a detailed analysis of several factors that influence LCC. At the same time, it develops a more complete, scientific and rational LCC optimization model. An illustrative example validates the model and the superiority of the whale optimization algorithm. The algorithm not only shows its scientific basis and superiority, but also serves as a guiding mechanism for LCC management in transformer engineering practices. Ultimately, it emerges as a fundamental tool to improve the efficiency of power grid asset management.

Techno-economic analysis of municipal sludge co-combustion power generation with different fuels

Municipal sludge production has been growing due to urbanization, and the sludge co-combustion process has been proven to be a promising alternative. Bituminous coal, straw, and general industrial solid waste (GISW) were used as fuel with sludge co-combustion power generation (CPG). The life cycle cost (LCC) theory and life cycle assessment (LCA) were applied to study the techno-economic and environmental impact of three CPG processes. The results show that the sludge CPG process demonstrates significant economic benefits. Using 1 ton of wet sludge as the functional unit. The net gains for using GISW, rice straw, and bituminous coal as fuel are ¥947.38, ¥261.31, and ¥135.78, respectively. However, the sludge CPG process imposes a burden on the environment, and incineration is the main stage leading to environmental degradation. Therefore, it is essential to focus on the emission of pollutants during this stage. This study can promote the economic sustainable development of sludge CPG.

Cost Analysis of Synchronous Condenser Transformed from Thermal Unit Based on LCC Theory

With the development of large-scale renewable energy consumption and multi-infeed high voltage direct current (HVDC) systems, the demand of a system for the synchronous condensers with a strong dynamic reactive power support capacity and a strong short-time overload capacity is increasing. Meanwhile, with the reuse of a large number of retired thermal units, the most practical and economic way is to transform thermal units into synchronous condensers. The cost difference in the life-cycle of the synchronous condenser transformed from a thermal unit (SCTTU) and the newly established synchronous condenser (NESC) is a key factor that affects the decision-making and construction of the transformation from thermal unit to synchronous condenser. However, the life-cycle cost (LCC) of the synchronous condenser transformed from a thermal unit and the newly established synchronous condenser contains many uncertain factors, which affect the accuracy of the LCC estimation value. In order to quantify the impact of the blind information on the cost of the synchronous condenser station, blind number theory is introduced to establish the blind number model of the LCC of the synchronous condenser transformed from a thermal unit and the newly established synchronous condenser. Additionally, the LCC of the NESC and SCTTU with a different life-cycle under the capacity of 2 × 300 MVar are estimated. The results show that the cost of the SCTTU with a long service life of more than 15 years is significantly lower than that of the NESC and, thus, the SCTTU has better economic performance. The economic performance of the SCTTU with a life-cycle of less than 15 years is not better than that of the NESC. Compared with the traditional calculation method of a single cost value, the blind number model can obtain the possible distribution interval of LCC and the reliability of the corresponding interval, which makes the estimation results more valuable for practical engineering reference.

Cost-Effectiveness Analysis of a Sponge City Construction Based on the Life Cycle Cost Theory—A Case Study of the Yanshan South Road Area of Qian’an City, China

In semi-humid regions of China, annual precipitation is not evenly distributed. Heavy, summertime rainfall with a short duration frequently causes urban flooding, and annual rainfall less than evaporation results in urban water scarcity. In 2014, Hebei Province’s Qian’an city was ranked among the first group of sponge city pilot cities. This paper investigates the historically flooded section of Yanshan South Road and its surrounding area in Qian’an, focusing on the cost of resolving an urban water problem. Using the storm flood management model (SWMM) and the life cycle cost (LCC) method, the waterlogging reduction effect and life-cycle cost of various low impact development (LID) scenarios were evaluated. Six rainfall design scenarios were simulated and calculated so that the hydrological performance and cost-effectiveness could be comprehensively evaluated to establish the economic value and effectiveness of implementing LID facilities. This study found that the cost-effectiveness values of sunken green space (SG), SG + infiltration ponds (IP) (3:1), SG + IP (1:1), and SG + IP (1:3) scenarios for infiltration LID schemes were relatively high, up to 2.10. In the infiltration-storage LID scheme, the cost-effectiveness of the SG + reservoirs (RE) (1:1) was grater, which was 1.84. In semi-humid regions, the regulation and storage of rainwater, regarding its collection and use, can be widely applied to the construction of sponge cities.

Improved Coordinated Control Strategy for Reliability Enhancement of Parallel PFCs With LCC Restriction

Power flow controllers (PFCs), which adopt high voltage and large power converters, are the significant device of cophase traction power supply systems (TPSSs); therefore, it is important to enhance the reliability of PFCs. Due to the limited capacity of power semiconductor switches, parallel connection of PFC units has been encouraged, and system reliability can be enhanced by configuring standby PFC units. However, while the increase in the number of redundant modules is accompanied by higher investment, the reliability improvement also has a saturation effect. In addition, among the control techniques of parallel PFCs, one of the commonly employed methods is current-sharing control, but the thermal stress of converters is increased at low loads. Therefore, in this article, a PFCs’ cost model is built based on life cycle cost (LCC) theory, and the number of basic, redundant PFC units is determined with the constraint of the minimum average annual cost. Furthermore, an improved coordinated control strategy that can alleviate thermal stress is proposed. Under a high load, all the PFC units are operated simultaneously, while, under a low load, the units are operated by turns. Moreover, to ensure consistent reliability and maximize system reliability, the rotation working time of each unit and the load demarcation point are optimized considering negative sequence compensation constraints. Case studies show that the given control strategy can extend the life span up to 26.30% and achieve a 19.11% cost reduction.

Cost-Effectiveness of Life Cycle Cost Theory-Based Large Medical Equipment.

The purpose of this study is to use the life cycle cost theory to analyze the efficiency of large medical equipment in hospitals, so as to implement life cycle cost (LCC) management and solve the current problems in hospitals. The analysis model of cost benefit of large medical equipment is established, and the cost-effectiveness of 4 large medical equipment between 2019 and 2021 is investigated and analyzed. In terms of the data in each information system of hospitals, the utilization of large medical equipment is quantitatively evaluated and analyzed by life cycle theory. The results show that the Revolution 256 row has the highest revenue of 113.29%. The annual depreciation of Signa 3.0 T HDxt is the highest, amounting to 4,160,000 yuan. However, there is lack of quality control and preventive maintenance of most equipment during use. The cost and benefit of large medical equipment in hospitals are analyzed, which demonstrates that Signa 3.0 T HDxt shows better effectiveness. Too high hospital warranty cost reflects the weak maintenance strength of hospital engineering technicians. The fundamental point of the maintenance and management of large medical equipment is to strengthen the performance evaluation of medical engineering technicians.

Optimal Capacity Configuration of Hybrid Energy Storage System Considering Smoothing Wind Power Fluctuations and Economy

After comparing the economic advantages of different methods for energy storage system capacity configuration and hybrid energy storage system (HESS) over single energy storage system, a method based on improved moving average and ensemble empirical mode decomposition (EEMD) to smooth wind power fluctuations is proposed aiming at the optimal capacity configuration of HESS. Firstly, EEMD was used to decompose the HESS reference power which was derived by improved moving average filtering, and then several intrinsic mode functions (IMFs) were obtained. Each IMF instantaneous frequency-time profile was processed by Hilbert transform, the so- call gap frequency was identified, and then reconstruct the high and low frequency components to obtain the HESS reference power. Subsequently, taken the energy storage system charge-discharge efficiency and state of charge (SOC) into account, the rated power and capacities of each scheme was determined. Finally, based on Life Cycle Cost (LCC) theory, an energy storage system economic cost calculation model was established to compare the costs of each scheme and select the optimal one.

Techno-economic analysis of multi-generation liquid air energy storage system

• Economic model of the multi-generation LAES system was established. • Economic analysis of the multi-generation LAES system was carried out. • Internal rate of return of the multi-generation system in Beijing reached 35%. • Dynamic payback period is most susceptible to the influence of uncertain factors. Multi-generation liquid air energy storage (LAES) system solves the shortcoming that the compression heat cannot be fully utilized in the general LAES system, and greatly improves the round-trip efficiency. Which is expected to become one of the most promising emerging energy technologies and has important research value and exploration significance. In order to prove the feasibility that the multi-generation LAES technology using peak-valley price difference for profits, this paper established the economic calculation model by life cycle cost theory. Based on peak-valley electricity price, heating price and cooling price of four typical cities in China, the cost analysis, profit analysis, breakeven analysis, sensitivity analysis and subsidy analysis of the multi-generation LAES system are carried out. The results show that the energy storage system has good economic benefits only in Beijing under the single electricity supply mode, the rate of return on investment is 12.5%, the internal rate of return is 25%, the static payback period is 6.25 years, and the dynamic payback period is 8.08 years. Under the multi-generation mode, the multi-generation LAES system has good economic benefits both in Beijing and Suzhou. Among them, the rate of return on investment in Beijing is increased 28.16% contrasted with the single electricity supply mode, the internal rate of return is increased 40%, the static payback period is decreased 34.88%, the dynamic payback period is decreased 42.33%. This study indicated that the multi-generation LAES system has strong market adaptability and risk resistance ability.

Research on 220kV Substation Main Electrical Connection Optimization Based on Life Cycle Cost Theory

As a key link of power transmission, substation main wiring plays an important role in improving the reliability of power supply in the grid. At present, the design of substation main wiring mainly is made with reference to the typical design schemes. However, due to the continuous development of load and the reliability requirements, the traditional wiring scheme may not fully meet the actual operation requirements. In response to this problem, a new main wiring idea is proposed, 3/2 circuit breaker wiring is added to the conventional double bus wiring scheme to form a mixed wiring scheme. The reliability of each scheme is calculated and analyzed. A certain 220kV substation with heavy load in Chengdu is taken as an example, the loss of social output value is considered, the comprehensive economy of the whole life cycle of the substation construction is calculated and compared, and finally the conclusion is drawn that the reliability and economy of the proposed scheme are the best.

Linking carbon market and electricity market for promoting the grid parity of photovoltaic electricity in China

In order to achieve the power supply change from traditional energy to clean energy in China, improving the grid parity rate of photovoltaic (PV) power is a key problem to be addressed. To establish a harmonious grid price between PV power and coal-fired power, this paper investigates the impact of carbon emission quota (CEQ) price on both PV power revenue and efficiency by constructing the carbon-electricity linkage mode with following innovative works. First, we set a trading mechanism that involves PV power plants and links carbon-electricity markets, and then propose market clearing rules for both CEQ and PV power prices. Second, we integrate market factors into the framework of power cost structure of different power sources based on the Life Cycle Cost (LCC) Theory. Third, we characterize the volatility of CEQ prices by offsetting the reduced fiscal subsidy of PV power and balancing grid price of different power sources. Our key findings show that the plan of improving current trading linkage of carbon-electricity market and grid parity scheme of PV power will be brought forward to 2023 that is 2 years ahead of schedule. What’s more, in the case of completely cancelling subsidy, CEQ price should be tripled by using this linkage to accelerate PV grid parity. By showing the possible trading benefit of carbon markets, this paper will help reduce the generation cost of PV power grid connection.

Capacity Planning of Pumped Storage Power Station Based on the Life Cycle Cost

Faced with the problem of high wind power curtailment, it is necessary to allocate a certain amount of energy storage power to promote wind power accommodation and stabilize grid operation. A pumped storage power station capacity planning method based on the full life cycle cost is proposed. The method comprehensively considers the life cycle cost of the pumped storage power station, the benefit of additional wind power generation, the coal-saving and etc. Based on the life cycle cost theory, the pumped storage power station capacity planning model aims to maximize the comprehensive benefit of the whole life cycle of pumped storage power station. Using the adaptive hybrid particle swarm optimization algorithm to solve the comprehensive benefit model, the operation strategy and the optimal planning capacity of pumped storage power station in each period are obtained. The influence of the pumped storage power station life cycle costs on comprehensive benefits is analyzed quantitative, and case analysis validates the effectiveness of the proposed method.

Research on Investment Decision of Substation Project Based on Life Cycle Cost

In this paper, the life cycle cost theory is applied to the study of investment decision-making of substation engineering, and the scientific, reasonable and objective comprehensive evaluation of substation engineering is realized. Based on the analysis of the calculation method of life cycle cost, a theory-based investment decision model for substation engineering is established. Finally, taking a substation project as an example, it proves that the model can effectively analyse the investment cost of different schemes, objectively reflects the economic differences between schemes, and provides a favorable judgment basis for investment decision-making of Power Grid Substation projects, which has a certain practical value.

Research on the Substitution Effect of Industrial Robot for Labor—Evidence from J Auto Company

Based on the theory of technical substitution rate and the Life Cycle Cost theory, this research designs the measurement model of robot substitution effect and analyzes the dynamic costs of industrial robot and labor. Then, by using welding robot of J auto company’s R model as an example, validates the effectiveness of this method. Finally the paper concludes that robots have a competitive advantage in the manufacturing process.

The collocation method of supplementary heat source of air-source heat pump system for space heating based on the MEBPT calculation

As the frequent fog weather and air pollution occurred in China in the recent years. The extensive investigations and applications of clean energy have been carried out to replace the scattered coal burning and meet the heating demand in Cold region of China. To deal with the air pollution problem, several governmental mitigation measures are strongly enforced, including the replacement of scattered coal by air-source hear pump for space heating in rural areas of China. The collocation of supplementary heat source for the air-source heat pump is more a design issue as well as an economical issue. This paper introduced the calculation method of the most economical balance point temperature (MEBPT) to confirm the collocation of supplementary heat source for air-source heat pump with based on the life cycle cost (LCC) theory and Bin method. The compound system including air-source heat pump and electrical auxiliary heater was analyzed. The proper balance point is much helpful to determine the capacity of the air-source heat pump and the supplementary heat source in the compound system and provide references for the design of space heating system.

Energy storage capacity optimization for autonomy microgrid considering CHP and EV scheduling

Microgrid is universally accepted as a new approach to solve the global energy problem. In a microgrid, the optimal sizing of energy storage is necessary to ensure reliability and improve economic efficiency. Its sizing results are impacted by uncertainty on natural resources, energy storage as well as load, and it is hard to coordinate these factors. Therefore, microgrid needs more improved strategies for optimal sizing. In this paper, we present a power source sizing strategy with integrated consideration of characteristics of distributed generations, energy storage and loads. Distributed generations consist of wind turbine, photovoltaic panels, combined heat and power generation (CHP) as well as electric vehicles. A two-layer hybrid energy storage system with three storage types (i.e. super capacitor, li-ion battery, lead-acid battery) is constructed based on their power density, energy density, response speed and lifetime, as well as load classification. Power load differences among different time intervals which are supplied by different types of storage leads to allocation of energy storage. An objective function is established based on life cycle cost (LCC) theory, which includes construction cost, operation maintenance cost, recycling profit, environment cost, and energy shortage compensation. Three scenarios, in which particle swarm optimization (PSO) is used for the optimal sizing, modeling and results calculating. From the simulations results analysis, it is found that the proposed model and strategy are feasible and practical.

Cost management for waste to energy systems using life cycle costing approach: A case study from China

This study is the first systemic cost investigation using the life cycle cost (LCC) method to analyse a municipal solid waste (MSW) incineration power plant project in China. In this study, LCC is divided into acquisition cost, maintenance cost, fault cost, and operating cost. Considering the time value of each cost, a model based on the LCC theory is established and three indexes are introduced to evaluate the MSW incineration power project, including the loan repayment period, the dynamic investment payback period, and a performance indicator. For a 12 MW MSW incineration power plant project, each cost and index are investigated under the designed runtime of 5500 h and a sensitivity analysis is performed to measure the impacts of main factors on the cost assessment results, including the annual operating hours, the government subsidies, the social discount rate, inflation rate and interest rate. The results show that the MSW project's LCC and total revenue are approximately 588 × 106 CNY and 746 × 106 CNY, resulting in an LCC performance indicator of 1.270 relative to the revenue; the acquisition cost comprises the maximum proportion of approximately 50% of the LCC, and the electricity price subsidy for utilising energy from waste (EFW) technology accounts for the largest proportion of approximately 30% of all subsidies; the loan repayment period and dynamic investment payback period are 9 and 15 years, respectively. The sensitivity analysis indicates that the variations in annual operating hours, the subsidy for disposing MSW, and the electricity price for utilising EFW technology have significant effects on the costs and indexes when compared with those of the social discount rate, inflation rate and interest rate; and that the increased acquisition cost and operating cost for denitration system may be offset by an increase in electricity subsidy by up to 0.013 CNY/kW h.

Study on the Improvement of Public Rental Housing Development and Operation Model Based on Full Life Cycle Theory

Public rental housing plays an important role in the construction ofsecurity housing system in our country, but in the current development andoperation mode, public rental housing project of its own financial viabilityCo., need the government to give large amounts of funds and policy support, thedependence is strong, is not conducive to sustainable development projects,limiting its security role play. In this paper, by using the life cycle costtheory, the construction of public rental housing life cycle cost model,analyze the existing problems in the development and operation mode, and thenputs forward the improvement direction of development and operation pattern,causes it to have certain financial viability, provide policy recommendationsfor the future development of China's public rental housing.

Agricultural Water Conservation Cost Control Mechanism of the Pre-Coastal City Based on Design Innovation

Water-saving irrigation is the livelihood of the people to solve the problem of coastal city agriculture water shortage of water conservancy projects. To investigate the situation of the construction of agricultural water-saving facilities in Tianjin, first ,this paper analyzes the using costs, including running maintenance costs. According to the life-cycle cost theory, it is an important means to control using costs in the infrastructure construction engineering design stage. Then the paper will analyze the complexity of the demand of urban water-saving irrigation and propose that designing innovation is the key to control the complex using costs. Finally , the paper will analyze The effect of investment and financing model of design innovation process. On the one hand, the mode of investment and financing will help to solve the construction funding gap; On the other hand, it will affect water-saving cost pre-control in different degrees.

Study on Cost of Green Building Based on the Life Cycle Theory

Currently, there exsits a Serious resource wasting phenomenon. In order to achieve the sustainable development of construction industry, the development of green building has become the inevitable choice of all countries in the world. This paper based on the sustainable development as the guiding ideology, through the basic theory of green building, based on the life cycle cost theory understanding as the foundation. First of all ,know the current situation of the development of green building cost at home and abroad, then according to the life cycle theory will be divided into green building decision-making, design, construction debugging, operation maintenance and recycling discarded five stages, points out the life cycle cost characteristics of green building.

A Comparative Study of China and America's Building Life Cycle Cost Database Establishment

Life Cycle Cost (LCC) theory and method have a very positive influence on popularizing energy-saving of green buildings technology and reducing buildings energy consumption. However, applying LCC method into the construction industry field must be based on adequate and accurate data. In establishing the cost database of building LCC, America walks in the forefront of the world. Although China's building LCC cost database has been rapidly developed in the past few years, there is still a large gap between China and the United States. By comparing and analysing the establishment of building LCC cost database of the two countries-United States and China, this article indicates the key issues should be solved to build and further improve the Chinese future building LCC cost database, as well as give some relevant advice.