WG B3.

38
technical brochure 734
Management of risk in substations
Members
G. BUCHS, Convenor (CH), G. TREMOUILLE, Secretary (FR), D.T. ANGEL (US),
A. CHEANG (AU), H. CUNNINGHAM (IE), G.L. FORD (CA), W. FAJBER (CA),
M. FURUYA (JP), X. JI (CN), M. KATSUMATA (JP), A. KLEPAC (AU), L. KORPINEN (FI),
B. LIEMANS (BE), M. MCVEY (US), F. NEPOMUCENO FRAGA (BR),
J. NIXON (UK), A.K. OLSON (US), A. OKADA (JP), J. RANDOLPH (US),
I. ROHLEDER (CH), S. SAMEK (PL), U. SCHMALBAR (DE), S. SHMUEL (IL), I. ULLMAN (CZ),
A. WILSON (UK), J. ZHANG (CN)
Corresponding Members
Y. KATO (JP), J. MARTINEZ (DE), R. MIGNE (FR), A. PHARMATRISA (ID)

Introduction
Working Group (B3.38) was established to investigate
the risk management approach and the experiences of
utilities associated with management of risk in substations.
The Working Group reviewed the feedback and experience
from utilities in terms of Operation, Maintenance and
Dismantling with a focus on extension and modification of
existing substations.
These documents define what is commonly referred to as
Enterprise Risk Management (ERM) as a tool for businesses
of all types to manage the risks of impacts associated with
their business activities.
Scope
The scope of work for WG B3.38 was defined as “Management
of Risk in Substations” which includes investigation of the
experiences of utilities in managing risks in existing AIS, MTS
and GIS substations and how substation engineering and
processes can be improved to address issues which may impact
operational, environmental, safety and other risks.
 Risks during Operation;
 Risks during Maintenance;
 Risks during Construction Project. This includes asset
replacement, bay work, upgrading and extensions;
 Risks during Dismantling.

CIGRE and other organisations have devoted considerable
attention to the various aspects of risk management as
applied in electric utility operations and management.
This Brochure documents how utilities are managing risks
in substations from conception through all stages including
demolition at end-of-life. The brochure includes the results
of a questionnaire which collated responses from 23 different
countries describing current utility practices. The brochure
also contains several case studies illustrating how utilities are
managing risk in more detail.

Process
Following this feedback, the Working Group then considered
how to improve substation engineering processes at each stage
of the substation life cycle.

The risk management process, as illustrated in Figure 1 - Risk

management process is applied to each stage of the substation
lifecycle and is used to assess safety, business, reliability and
environmental risks specific to that stage in the cycle.

Risk is defined as the product of probability of an event, times

the consequences of the event. In monetised risk-based business
Figure 1 - Risk management process
case analysis, the consequences of an event are quantified in
monetary terms, e.g. Euros, Dollars, etc. and with the units of
risk being therefore in monetary terms. •••

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However, undertaking mitigating actions involves a cost
and the business decision is to decide the level that is a fair or
reasonable expenditure in order to achieve a reasonable risk
level. Sometimes this is defined in terms of a cost benefit, in
others it relies upon case law.
While the qualitative methods are useful for ranking decisions
related to immediate or very-near-term investments, regulatory
and system planning requirements typically require analysis
for tactical decisions over a five, ten or fifteen year planning
period, In a technical sense, treatment of risk fundamentally
involves taking steps to reduce the probability of failure or the
consequences of failure or both. Companies may also decide
to transfer risk to other companies through investment in
insurance.
Several chapters describe in much more detail the differing
aspect of operational risk: reliability, business, safety and
environmental.
The major safety risks to both the public and utility personnel
from electricity are well known, such as electrical shock,
explosion, smoke and arc burns.
Utilities have to establish safety rules for substation operation,
particularly for minimum approach distances (MAD). Safety
rules can include a permit system which will counter-check
device status at local and remote-end substations. The staff must
be competent personnel trained for normal and emergency
situations to operate safely maintain the company’s electric
system. This topic is currently being explored in detail by CIGRE
Working Group B3.46 who will publish their findings in 2019.
Controlling hazards can be accomplished via the methods
explained in the Technical Brochure like: administrative,
detective or preventive, which may involve equipment or facility
design. A preventive control is the best way to control hazards
from occurring. One theory on safety events makes the case that
prior to a serious event occurring, there are many similar events
that almost happen.
Reliability risk can be impacted in a number of areas and
it is important to identify which risks are pertinent at which
facilities. Large potential impacts on reliability can result from
extreme natural events, several venue will be investigated in the
brochure with practical examples.
While formalised approaches to assessing risk has been
introduced in the Technical Brochure, in general it involves
identifying the risk, determining what may be adversely
affected and how, and then an evaluation on the likelihood and
consequence severity of the event, while also listing the resulting
hazard(s). Risk assessment typically results in an assignment of
high, medium or low risk to specific tasks, installation, works
process etc...
Carrying out surveys of the site and the equipment can
obviously eliminate risks. However, when substations are live
WG B3.38
technical brochure 734
and cannot be switched off or isolated and cabinets and cubicles
cannot be opened for fear of operating the equipment then it is
essential that the data and documentation is correct and reflects
the current status of the equipment. For the risks associated
with testing and commissioning work, these are discussed in
the other chapters of this Technical Brochure.
There is an increasing number of substations which need
replacement. In most of cases a new substation will replace
an old one which should be dismantled after the successful
commissioning of the new plant. These works are in general
subject to a paragraph in construction permit of the new
substation and minimal further administrative works are
undertaken. Recognizing the risks about dismantling and
understand what are the dangerous points in the process of
dismantling the equipment are important. This process is
discussed in detail in the Technical Brochure and provides
guidance to the reader on how to mitigate this risks which may
be present at this stage of the asset life.
Risk management starts and ends with the company executive
and links through the company to ensure that business values
are protected by all activities. This represents a major cultural
change. Once these goals are set a tactical asset plan to achieve
them is required. It is this plan that will drive future expenditure
for asset investment. Risks cannot be completely eliminated but
risk impact can be mitigated by measures which at the end shall
make sure that no fatal incident occurs. It is important to bear in
mind that small things can have a big impact. Many risks cannot
be completely eliminated but risk impact can be mitigated by
various measures.
In the Technical Brochure each chapter contains synthesis
tables which summarize the risks related to the activities from
the conception of a new substation up to his final dismantling.
Table 1 is an example of one such table.
These synthesis tables are practical tools to be used on daily
basis for young and experienced engineers active in this field
and provide comprehensive references to the detail contained
in each chapter of the brochure covering the lifecycle of a
substation.
Chapter 8 of the Technical Brochure provides detailed view
of the responses received to the questionnaire issued by the WG.
Responses were received from 23 different countries which will
give the reader a fair view of the level of awareness those topics
around the world. Figure 2 illustrates the response to one of the
questions asked on the availability of procedures to manage
various materials during various stages of the lifecycle. The
spider diagram shows the % positive answers for each.
Conclusion
The Working Group was established to investigate the
experiences of utilities associated with works at existing
substations. The Working Group reviewed the feedback and
experience from utilities in terms of Operation, Maintenance •••
No. 299 - August 2018 ELECTRA 107
 WG B3.38
technical brochure 734

Table 1 - Synthesis table of risk management in substation illustrating some environmental risks during maintenance

and Dismantling with a focus on extension and modification
of existing substations. Following this feedback the Working
Group then considered how to improve substation engineering
processes at each stage from equipment specifications, project
management, substation design, manufacturing, transportation,
construction, erection and testing & commissioning. Many risks
can be reduced, or preferably eliminated, at the design stage
and, therefore, feedback from all stage s and all stakeholders into
the substation design are critical to improve the management of
future risks.
This brochure not only introduces risk management
techniques but also enables the reader to consider practical
examples of how to control and mitigate risks successfully
employed by other utilities around the world.
The result of the findings of this work has driven the creation
of new Working Group (B3.46) to look specifically at Safety
in substations and measures required to ensure the safety of
people who may come in to proximity of the installations. 

Figure 2 - Sensitive material management in substations

No. 299 - August 2018 ELECTRA 109

 734 GT B3.38
brochure thématique

BROCHURE N° 734
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(in English only)

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110 No. 299 - August 2018 ELECTRA