Sustainability-aware Asset Investment Optimization

Abstract

Sustainability-aware asset replacement has taken a prominent role in Energy & Utilities, supply chain, transportation, and other industries to meet the clean energy and zero emissions targets set by the 2030 Paris Agreement. This talk introduces a novel approach for asset replacement planning using sustainability scores together with asset health metrics. We prioritize assets to be replaced based on failure risk and criticality while aiming for the highest overall sustainability benefits. Our four-step approach includes computing asset sustainability posture, forecasting this posture over a planning horizon, enhancing the asset risk matrix with sustainability scores, and optimizing asset investment planning by incorporating these scores. We demonstrate the application of our methodology to distribution transformers in the Energy & Utilities industry.