.net barcode printing Characterizing the cost and effectiveness for solution alternatives in Software

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352 Characterizing the cost and effectiveness for solution alternatives
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Each solution technology needs to be characterized in terms of cost and effectiveness In broad terms the solution cost should include initial procurement and installation expenses, operating and maintenance expenses, and any disposal and/or salvage value considerations A thor-
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Voltage Sags and Interruptions Voltage Sags and Interruptions
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TABLE 33
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Example of Weighting Factors for Different Voltage Sag Magnitudes Category of event Weighting for economic analysis 10 08 04 01
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Interruption Sag with minimum voltage below 50% Sag with minimum voltage between 50% and 70% Sag with minimum voltage between 70% and 90%
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TABLE 34
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Example of Combining the Weighting Factors with Expected Voltage Sag Performance to Determine the Total Costs of Power Quality Variations Weighting for economic analysis 1 08 04 01 Number of events per year 5 3 15 35 Total equivalent interruptions 5 24 6 35 169
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Category of event Interruption Sag with minimum voltage below 50% Sag with minimum voltage between 50% and 70% Sag with minimum voltage between 70% and 90% Total
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ough evaluation would include less obvious costs such as real estate or space-related expenses and tax considerations The cost of the extra space requirements can be incorporated as a space rental charge and included with other annual operating expenses Tax considerations may have several components, and the net benefit or cost can also be included with other annual operating expenses Table 35 provides an example of initial costs and annual operating costs for some general technologies used to improve performance for voltage sags and interruptions These costs are provided for use in the example and should not be considered indicative of any particular product Besides the costs, the solution effectiveness of each alternative needs to be quantified in terms of the performance improvement that can be achieved Solution effectiveness, like power quality costs, will typically vary with the severity of the power quality disturbance This relationship can be defined by a matrix of % sags avoided values Table 36 illustrates this concept for the example technologies from Table 35 as they might apply to a typical industrial application
353 Performing comparative economic analysis
The process of comparing the different alternatives for improving performance involves determining the total annual cost for each alterna-
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Voltage Sags and Interruptions 76 Three
TABLE 35
Example Costs for Different Types of Power Quality Improvement Technologies Operating and maintenance costs (% of initial costs per year) 10 25 5 15 7 5 15 5 5 5 5
Alternative category Controls protection (<5 kVA) CVTs UPS Dynamic sag corrector Machine protection (10 300 kVA) UPS Flywheel Dynamic sag corrector Facility protection (2 10 MVA) UPS Flywheel DVR (50% voltage boost) Static switch (10 MVA) Fast transfer switch (10 MVA)
Typical cost $1000/kVA $500/kVA $250/kVA $500/kVA $500/kVA $200/kVA $500/kVA $500/kVA $300/kVA $600,000 $150,000
tive, including both the costs associated with the voltage sags (remember that the solutions do not typically eliminate these costs completely) and the annualized costs of implementing the solution The objective is to minimize these annual costs (power quality costs solution costs) Comparing the different power quality solution alternatives in terms of their total annual costs (annual power quality costs annual power quality solution costs) identifies those solution(s) with lower costs that warrant more detailed investigations The do-nothing solution is generally included in the comparative analysis and is typically identified as the base case The do-nothing solution has a zero annual power quality solution cost but has the highest annual power quality costs Many of the costs (power quality and operation and maintenance) are by their nature annual costs The costs associated with purchasing and installing various solution technologies are one-time up-front costs that can be annualized using an appropriate interest rate and assumed lifetime or evaluation period Figure 330 gives an example of this type of analysis for a typical industrial facility The facility has a total load of 5 MW, but only about 2 MW of load needs to be protected to avoid production disruptions The voltage sag performance was given in Table 34 The costs for an interruption are $40,000 per event, and the costs for voltage sags are based on the weighting factors given previously The six options given in Table 36 are analyzed, and the annual costs are presented The annualized costs are calculated based on a 15-year life and an interest rate of 10 percent
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