Innovating Asset Performance Optimization for Distributed Energy Resources

In an article for Renewable Energy World, Navigant Research shares 7 key benefits of a using a holistic approach to maintaining DER assets

As the amount of distributed energy resources increases globally, protecting related assets is more important than ever. In an article for Renewable Energy World, Pritil Gunjan, senior research analyst at Navigant Research, says key to this is a strategic approach that allows owners to manage risk and returns while ensuring optimum technical performance.

Putting together a holistic asset performance optimization (APM) plan, rather than relying on traditional calendar-based management, Gunjan says, can significantly affect return on capital and lower the total cost of ownership for asset owners, in addition to several other benefits:

  • Identify faults before they occur through predictive maintenance
  • Facilitate machine learning and data analytics
  • Identify operation and maintenance costs for each phase of the asset lifecycle
  • Drive risk management decisions
  • Streamline and predict skill and resource requirements
  • Define the asset failure profile and availability guarantees
  • Predict the life expectancy of assets and reduce CAPEX investments

While the approach is still nascent, Navigant Research expects the global revenue for distributed renewables APM to increase from $4.6 billion in 2018 to $23.2 billion in 2027. Growth is anticipated to be driven by a maturing installed base in Europe and North America and substantial new capacity additions are anticipated in Asia Pacific.

“It is fair to say that the APM market for distributed renewables technologies is still in its infancy because of the scale of investments required to perform an integrated end-to-end APM,” Gunjan said. “Yet, due to the logistics involved in operating and maintaining remote installations, integrated APM solutions have an economic advantage over corrective and reactive maintenance practices — especially for distributed power generation.”

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