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Procedia Engineering 00 (2017) 000–000

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4th International Colloquium "Transformer Research and Asset Management”

Practical approach for fleet management of transformers

considering different stakeholders’ perspectives
Alexei Babizkia*, Marc Foataa, Karlheinz Lindla, Dominik Beerboomb,
Erik Pawlowskib, Markus Zdrallekb, Rolf Funkc, Jan Patrick Linossierc
a
Maschinenfabrik Reinhausen, 93059 Regensburg
b
Bergische Universität Wuppertal, 42119 Wuppertal
c
Rheinische NETZGesellschaft, 50823 Köln

Abstract

Power transformers are the most expensive and perhaps the most strategic assets in a substation.
Accordingly, transformer operators both in the utilities and in industry are drawn to optimize their
overall financial performance by maintaining a high reliability and extending lifetime at minimal costs.
One obvious requirement for this performance improvement is knowledge about the current condition
of the whole transformer fleet. This information is essential for the short-term, long-term, and strategic
decisions of the transformer operator. In most companies, different funding sources (and departments)
are responsible for the optimal fleet management: capital expenditures (CAPEX), operating
expenditures (OPEX) and the grid operator.
Meanwhile various diagnostic possibilities and methodologies exist in order to assess the condition
of a transformer. Most of these methods aggregate the assessment to the highest level in order to
provide the information about the transformer condition in the form of a single number (known as a
Health Index, HI). However, the index calculation is not transparent for the different stakeholders
which means that the unique HI value does not distinguish between the various practical concepts (such
as maintenance or replacement planning). This leads to the fact that a single HI value is of little use for
practical decisions.
This paper presents a new transformer fleet management approach which covers different
requirements from the key stakeholders in the decision making process. For this purpose two indices
were developed which are based on the same information available for the condition assessment. These
two indices are addressed to the decision-makers responsible respectively for CAPEX and OPEX
questions. In this approach the current transformer condition according to the reliability and to the
remaining life time of the asset will be covered.
In general the available information for the assessment is classified in three groups: a) historical and
technical data b) on-line data (from the energized transformer) and c) off-line data (from the de-
energized transformer). The reasons for, and advantages of, this classification will also be discussed in
the paper. The information has to be collected from all available/ accessible components of the
transformer. In addition, the consequences and recommendations that result from the outcomes of the
assessment will be presented. Thereby, general recommendations towards investment in transformer
life extension will be examined from both the OPEX as well as the CAPEX perspectives. Furthermore,
the results of a field test in a German utility with different quality of data (amount of information for
the condition assessment) will be presented which confirms the practical applicability of the approach.

Keyword: Asset Management, ISO 55000, Transformer Fleet Management, Health Index, Power
Transformer, Condition Assessment, Reliability, Remaining Life -Time
____________________________________
* Alexei Babizki. Tel.: +49 941 40907031
E-mail address: a.babizki@reinhausen.com

1877-7058 © 2017 The Authors. Published by Elsevier Ltd.

Peer-review under responsibility of the organizing committee of ICTRAM 2017
1. RNG’s Asset Management Context

As a regional German distribution network operator, the company Rheinische NETZGesellschaft

(RNG) operates a fleet of power transformers between the voltage levels of 110/10 kV, 110/25 kV and
25/10 kV. Especially the 25 kV voltage level is in the focus of interest because the historic 25 kV step
in the supply role of the transport grid has been superseded in the system planning by the 110 kV higher
voltage level. Table 1 gives an overview of the HV transformer fleet currently under RNG’s asset
management responsibility.

Table 1 Overview of transformer fleet

Voltage level (kV/kV) Installed Power P (MW) Numbers

110/10 1010.5 64
110/25 877.5 21
25/10 407.5 29

Most transformers can be found in the 110/10 kV voltage level, but as can be seen, there is a
considerable number of transformers in the 25 kV level that will be replaced due to the voltage change
in the long-term; and the asset management strategy has to integrate this perspective. Figure 1 shows
the respective age distribution.

Age - Number Distribution

20
110/10-kV
15
110/25-kV;25/10-kV
10

0
1945 1955 1965 1975 1986 1996 2006 2016

Fig. 1 Age-distribution of the RNG fleet

In addition, with a transformer fleet mean age of 45.7 years, the Asset Management group at RNG
faces a difficult challenge to optimize the resources for the medium- to long-term maintenance and
renewal of its transformers.
However, without adequate information about the technical condition of the equipment, no reliable
strategic resource planning can be carried out. Through a collaboration with partners (Maschinenfabrik
Reinhausen and University of Wuppertal) a new systematic assessment procedure was developed that
satisfies the requirements of the risk-based asset management implemented by RNG. The challenge
here was to find a pragmatic approach that takes into account both technical and financial aspects for
the renewal and maintenance strategies. In addition, from the asset managers' perspective, the procedure
should mesh with the requirements of the ISO 55000 management system [1].

1.1. Role of the Asset Management System

RNG operates an asset management system in conformance with ISO 55000. Starting from pure
maintenance management (DIN 31051 [3]), 2008 then saw the start of a shift in Germany, initiated by
the British Standard PAS55 [2], towards a value- and risk-oriented asset management system for
infrastructure companies. With the adoption in 2015 of the enhanced ISO 55000, there was for the first
time a framework that provided a structure for asset management at the international level, and this has
also been implemented by RNG. Figure 2 shows the approach which is prescribed by ISO 55000.
 Fig. 2: Asset Management System according to ISO 55000 [1]

The essential feature is a top-down approach to decision-making on dealings with the resources
(assets). Hereby the stakeholders are responsible for the definition of the corporate and organizational
objectives. At the bottom “Performance evaluation and improvements”, essentially the reliability and
the sustainability of the assets need to be measured and provided to the asset manager for the
continuous improvement loop. Based on these corporate objectives, e.g. with reference to technical
performance, financial performance or safety aspects, asset-related risks are minimized through
targeted asset management strategies, from which appropriate operational measures are inferred.

1.2. Risk mitigation strategy and objectives for Power transformers

Competing targets often lead to strategic variants that then serve as the basis on which an optimal
decision should be taken. For the basic risk analysis, an estimation of the condition of the resource
group under consideration is essential. In the 1950s, the installed transformer capacity was marked by
strong growth in load during the phase of reconstruction and industrialization. It was necessary to meet
the growing energy needs and support the preservation of technical assets with a reliable time-based
maintenance strategy. However, the need for a far-sighted renewal strategy, which is obvious today,
was not recognized at that time. The asset manager is in the situation that he has the age distribution of
the fleet from Figure 1 available on one side and the Asset Management System from Figure 2 with
defined targets on the other side. In that scope, the following questions arise:

 How do the transformers contribute to the overall quality and security of supply?
 How will the renewal/maintenance strategic alternatives affect the financial objectives in the
regulated network business? (CAPEX and OPEX optimization)
 How will the economic loss assessment affect the renewal decision?
 How will the measures affect the environmental objectives? (E.g. noise emission)
 How will compliance to current laws and standards impact the strategies? (E.g. ecodesign)
 Top management decision-makers expect, from the asset managers, plausible explanations for their
strategic decisions. Their task is therefore to evaluate and control the risks (as the product of the
magnitude of consequence by the probability of occurrence) while meeting the corporate targets.

1.3. Requirements for condition-assessment system

An essential parameter for assessing probability of a failure is the technical condition. In reaching
optimal decisions and recommendations for action, the managers should differentiate between
irreversible effects (usually requires a renewal decision) and reversible ones (usually requires a
maintenance action). In the past, renewal decisions were based almost exclusively on the age of the
asset. RNG's previous approaches were essentially aimed at managing maintenance and the assessment
schemes were based on this single dimension. By means of a condition index, prioritization within the
fleet was indeed possible for tracking the appropriate maintenance measures such as the shortening of
the sampling interval for the dissolved gas analysis (DGA) of prominent transformers. However, from
the perspective of the asset managers, this single condition index was insufficient for the decision on
the best alternative (renewal vs. maintenance). A second dimension had to be introduced and was
precisely the purpose of the development of a new assessment scheme through an extended partnership
with a transformer expert (Maschinenfabrik Reinhausen) and a methodology expert (University of
Wuppertal).

2. Systematic condition assessment

2.1. Input parameters

In general, a number of potential input parameters and measurement methods are available for
assessing the condition of a 110 kV transformer. Indeed, various components (tank, active part, oil,
lead-through bushings, tap-changers, cooling etc.) and assessment categories (insulation strength,
current carrying capacity and mechanical function) have to be considered. The following input
parameters are typically used for this purpose [4; 5; 6; 7]:

 Nameplate and manufacturing data

 Experience/ history
 Results of visual inspection
 Oil analysis
 DGA
 Thermography
 Electrical tests

These provide information on both the general (overall) condition of the transformer as well as the
individual components. As part of the condition assessment, this wealth of input parameters must be
prepared in a structured manner using a suitable framework and systematically merged into an overall
statement of the technical condition.

2.2. Information packages

The volume of information and the number of input parameters collected for the condition
assessment differs from case to case. The selection of the amount of information to be used cannot be
based purely on technical aspects; there are economical and operational aspects that should be
considered as well. For this reason, in the development of the scheme, the input parameters were
grouped in a structured manner into 3 information packages that are staged incrementally according to
the reality of a transformer operation and to the different requirements of condition assessment (see
Table 2).
Table 2. Structuring of the input parameters into information packages
Input data Note
1st Level Existing data (main transformer data, maintenance history, measurement data) /
Assessment Initial fleet ranking and clustering for next steps
2nd Level Data from field survey / Detailed fleet condition assessment of targeted clusters No outage required
Assessment
Visual inspection and 1. Oil analysis
non-disruptive tests:
2. Dissolved-gas-analysis (DGA)
3. Furan analysis
4 Temperature/ thermography
5. Acoustic partial discharge measurement
6. Vibro-acoustic (OLTC-measurement)
7. Motor current analysis
3rd Level Data from disruptive tests / Deeper condition assessment of selected units Outage required,
Assessment Suspicious units or
8. Winding resistance 15. Magnetization current
further condition
9. Short circuit impedance 16. SFRA
assessment of
10. Transformer Turn Ratio 17. PDC/ FDS-measurement refurbishment/ repair
11. Insulation resistance 18. Dynamic resistance measurement (DRM) candidates

12. Power factor / tan δ 19. Contact wear

13. Capacitance 20. Vibration measurement (Cooling system)
14. Core Ground Test

The data normally available from the system operator represents the initial package (1st Level
Assessment). With this information, the groups of transformers from the fleet that should be subjected
to a closer on-site investigation can be preselected. The 2nd Level Assessment is the standard, on-site
basic appraisal of a transformer during operation. At this stage, a condition assessment is carried out on
the basis of the visual inspection (inspection checklist) and non-disruptive tests such as: the oil
condition tests, DGA and thermography. The 3rd Level Assessment includes all additional test methods
that can be used on transformers in the field in order to achieve a comprehensive condition assessment.
For this purpose, however, it is necessary to take the transformer off-line which is why this 3rd Level
Assessment should be limited to targeted situations where the results established based on the previous
information packages have identified a suspicious unit, or when a unit is preselected for a major re-
investment. Experience [5; 6; 8] tends to show that this level is typically required only for a small
percentage of any transformer fleet.

2.3. Assessment model

The input parameters included in the information packages are processed through an assessment
model that aggregates the collected input parameters into a systematic statement about the condition of
the transformer. The basic principle is shown in Figure 3 [7; 9; 10].
 Fig. 3 Basic principle of the condition assessment model

In this model, "soft facts" from base and inspection data, as well as "hard facts" from test methods
are used as input parameters that evaluate existing defects and wear in the form of comparable single
parameters. This is done with the help of pre-defined limits and subsequent classification of the input
variables. These are based on the international IEEE and IEC standards and CIGRE recommendations.
Furthermore, experts’ knowledge has been considered and implemented in this new approach.
Afterwards, the individual parameters are aggregated into an overall index. The aggregation is carried
out by a rule-based expert system and a hierarchical structure using weighting factors. The structure of
the model is shown in Figure 4 [7; 9; 10].

Fig. 4. Structure of the condition model for a 110 kV transformer

A bottom parameter level, not shown here, includes all the information for the classification of
results from each measurement. Through grouping into sub- and main components, these are
aggregated into the (overall) indices for the transformer. Indeed, unlike other systems, not one (Health)
index is generated, but the perspectives of different stakeholders are taken into account separately.
Accordingly, the basic limits, the rule-based expert system and the weighting factors are adapted to the
special requirements in order to deliver a conclusion aimed at two different users groups.
 In this way, the following indices are determined:

 Loss of lifetime index (LI)  Target group: asset management

 Maintenance/ failure risk index (RI)  Target group: service/ operation

RI focuses primarily on the short-term maintenance measures that are to be carried out so that a
transformer failure does not occur (Risk). Thus, despite a good overall condition, there may be defects
that can cause an outage and costly damages but that can be avoided by timely maintenance actions.

In contrast, LI takes into account the long-term operation of the transformer. In this case, renewal-
related aspects and input parameters that address the remaining lifetime are considered [7; 9; 10].

Using the graphical representation of the two indices, the necessity and general direction for action
for an individual transformer can immediately be seen from the chart (Figure 5). For this purpose, the
chart is divided into different regions. The details can subsequently be extracted and analysed to
confirm and determine the exact measures that need to be taken.

Fig. 5: Visualization of the transformer condition results

At the fleet level, when the graph contains a population of transformers, the asset manager has an
overview, at a glance, of the major maintenance and replacement policies that will have to be
implemented in conjunction the corporate targets.

2.4. Consideration of data quality

As already explained, different input parameters are collected depending on the particular
information package. The assessment model therefore has a modular structure and generates the
corresponding indices even with relatively few input parameters. However, the introduction of the
information packages makes it directly visible that, depending upon which input parameters and tests
the condition assessment is based, a differing quality of assessment is also created. The condition
indices alone cannot depict this. Therefore, supplementary evaluation levels for the two indices are
introduced which take into account the following aspects:

 the number of relevant, necessary individual parameters for each index, and
 the time-validity of the information of the individual parameters.

By means of a suitable aggregation using weighting factors, the assessor obtains a reference value
for the quality of the assessment. The more information is collected and the more up to date it is, the
higher will be the quality of the assessment.
This means that the quality of the information packages is also quantified. 1st Level Assessment
takes relatively little time but also has only a limited significance. A result about the general (overall)
condition of the transformer is produced, but depending on the data provided the level of detail of the
analysis may be quite low. If the tests from the 3rd Level Assessment are used, a very high and detailed
significance is achieved, but the resource requirement is clearly and correspondingly greater.

3. Results of a field trial

3.1. Condition assessment

The result of a pilot field trial with the new methodology that was carried out at RNG is presented
below. For the initial review (1st Level Assessment) the following information was obtained from
RNG’s historic files:

 Technical specifications of the transformers (power rating, voltage level, design of the
components etc.)
 Oil analyses and DGA (historical data)
 Additional information such as maintenance history and policies

Based on this information, a first clustering of transformers according to their expected condition
could be realized and groups defined for further investigation.

However, for the second phase (2nd Level Assessment) of this pilot field trial, 9 transformers were
selected out of a total of 114 primarily for model validation purposes. These 9 units were sampled
according to their power rating, voltage level, pre-calculated overall technical condition, and age in
order to represent the distribution of the fleet that is being investigated (see Figure 6).

- selected transformers

Fig. 6 The RNG transformer fleet and the sampling of transformers for a 2nd level assessment
In the 2nd Level Assessment the following information and test methods was added to the data set:

 Visual inspection
 Thermography
 Analysis of transformer book data (factory tests, components etc.)
 Oil sampling (DGA)
 Oil analysis (furans, physical parameters)

The additional data was subsequently processed in the condition assessment model and the results
can be viewed in Figure 7. It can be seen that five transformers are in the “N” region (Normal
operation), one transformer is in the “M” region (Maintenance required) and three transformers are on
the edge between these two regions.

Fig. 7: 2D representation of the condition assessment of fleet of nine transformers

3.2. Conclusion and recommendations

From the chart (Fig. 7), it can clearly be seen that the sampled fleet is in a relatively good technical
condition (only “N” or “M” areas). The transformers that are located in the "M" area show moderate
ageing and concrete countermeasures are proposed for these units to ensure the reliability of the
transformers as well as to extend their lifetime (e.g. oil filtering and installation of hydrogen sensor).
After careful review, transformer MKE11 was estimated to be in a very good condition, but conflicting
results had been identified during the review of the breakdown voltage, surface tension, acidity and the
colour number of the oil. A possible sampling or lab analysis problem could explain the discrepancies,
therefore a repetition of the oil test was recommended before the relevance for corrective action could
be confirmed.
The main results are also presented to the asset manager in the form of a summary together with the
recommendations at the highest aggregation level (Table 3). These recommendations are based on the
two dimension analysis with the corresponding areas presented above, with further analysis by
transformer experts. Additionally a detailed report with concrete measurement results,
recommendations and prioritisations is generated by the algorithm.
Table 3 Summary of results and recommendations
Transformer Assessment of the current condition
GRE T11 Adequate condition but reliability can be improved. Moderate signs of ageing.
GRE T12 Good condition for a reliable operation. Moderate signs of ageing.
GRE T13 Adequate condition but reliability can be improved. Moderate signs of ageing.
MKE T11 Inconclusive result: a further oil test is necessary. No significant ageing.
MKE T12 Good condition for a reliable operation. Moderate signs of ageing.
MKE T13 Good condition for a reliable operation. Moderate signs of ageing.
MKE T14 Adequate condition but reliability can be improved. Moderate signs of ageing.
MKE T17 Adequate condition but reliability can be improved. Moderate signs of ageing.
MKE T18 Good condition for a reliable operation. Moderate signs of ageing.

3.3. The importance of expert review

The following section illustrates through an example case the importance of a critical review of the
result. The first calculation with the complete set of data is shown in Figure 8 below (calculation
without tap-changer type consideration). It can be seen that the apparent condition of this unit would
require some corrective action essentially to address the low reliability issue.

Fig. 8 Example condition assessment of one transformer

Detailed review of the critical parameters revealed that the acetylene level (141 ppm) was the main
factor in explaining the low score in the reliability index. Indeed the presence of acetylene in the main
tank is normally a sign of arcing which must be taken seriously. However, the following points need to
be taken into account in this particular case:

 The transformer is equipped with a 1960s tap-changer with a Bakelite-type oil-compartment

which is not tight so oil from the tap-changer compartment can migrate to the main tank.
 Furthermore, it is inherent for the design of this tap-changer type that it produces high level of
acetylene during normal operation (arc interruption in the oil).
 As this “contaminated” oil will mix with the oil of the transformer, the detected level of
acetylene can clearly be considered as a by-product of the tap-changer and not an indicator of
an incipient failure in the transformer.

After the consideration of this fact, the methodology was adjusted to this possibility (tap-changer
design) so that the extended calculation scheme could handle this extraneous effect. The adjusted
calculation indicates a more realistic and better transformer condition shown in Figure 8 (calculation
with tap-changer type consideration). The overall condition of the transformer is rated as adequate with
moderate ageing. This is further supported by the stability of the hydrogen values over the years. If an
internal fault was indeed present, hydrogen levels should have increased accordingly. In this case, the
stability of hydrogen levels allows for the use of a gas monitor despite the presence of other gases
coming from the tap-changer compartment. Conclusively, as a risk mitigation measure, the
recommendation was to install a gas monitor to trend hydrogen levels for an early indication of a
developing fault.

3.4. Summary

A new approach for the assessment of transformer fleets was presented in this paper. This novel
methodology is adapted to the transformer operator constraints and practices and provides an output
that supports decision-making according from different stakeholder’s point of view. The first field trial
confirmed its applicability.

The available input parameters are structured into information packages that include visual
inspections and measurements. The related interpretation criteria are based on international standards
like IEEE, IEC or CIGRE recommendations, in addition to practical experience from experts. Thereby
the approach covers two perspectives: transformer lifetime (long term investment decisions, CAPEX)
and operational risk/ reliability (short and mid-term maintenance and refurbishment decisions, OPEX).
Therefore, two different indices are developed which are based on the same information available for
the condition assessment: Loss of lifetime index (LI) and Maintenance/ failure risk index (RI).
Considering both ensures selecting the correct measure.

The new method is based on the evaluation of technical criteria, and not mainly on the age like most
other evaluation approaches. Its selective sampling strategy enables a gradual and cost-effective
deployment of testing. The first field trial also showed that the systematic analysis of individual
components allows for detailed recommendations on specific actions. Moreover, the algorithm does not
require a complete set of data in order to produce a sufficiently accurate assessment for specific
recommendations to be made.

Based on the positive results of a pilot field trial at RNG, the features of the new approach proved to
be fulfilling very well the requirements of an asset management implementation compliant to ISO
55000.

References

[1] ISO 55000, Asset-Management — Asset management - Overview, principles and terminology
[2] BSI PAS 55, Asset Management — Part 1: Specification for the optimized management of physical assets
[3] DIN 31051, Fundamentals of maintenance
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International Conference on Electricity Distribution (CIRED), Lyon, France, 2015
[5] Tenbohlen, S.; Heindl, M.; Jovalekic, M. et al.: Trends of the Diagnosis of High Voltage Equipment, ETG-Fachbericht 134:
Diagnostik elektrischer Betriebsmittel, Fulda, Deutschland, 2012
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ETG-Fachbericht 144: Diagnostik elektrischer Betriebsmittel, Berlin, Deutschland, 2014
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9783741819834,Dissertation, Bergische Universität Wuppertal, Germany, 2016
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Diagnostik elektrischer Betriebsmittel, Fulda, Deutschland, 2012
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insulated substations, 23rd International Conference on Electricity Distribution (CIRED), Lyon, France, 2015
[10] Beerboom, D.: Objektive Zustandsbewertung von Mittelspannungsnetzen als Grundlage der Asset-Optimierung, ISBN:
9783741895395, Dissertation, Bergische Universität Wuppertal, Germany, 2016