During the time it was adopted by an increasing number of parties in the industrial sector until to release in 2014 the ISO 55000, the international standard of Asset Management.
Despite its diffusion, different concepts and definitions of asset management have been developed during the years and to date, it is still confusing. Found in field of financial industry as the management of an investment portfolio on behalf of multiple actors and the related mitigation of risks and revenues, the concept has been extended to all sectors and industries.
Following the definition of the ISO 55000, the asset management is the
‘coordinated activity of an organization to realize value from assets.’ [48]
Value which, once identified by the organization’s objectives and strategy, is the result of a balance between costs, risks, opportunities, and performance throughout the life cycle of the asset.
Thus, the aim of the asset management could be identified as the achievement of the strategic objective of a company or their stakeholders and the generation of value through the creation, operation, maintenance and finally dismission of an asset. [47]
In case of a renewable assets, typical objectives of an organization could be:
• Technical performance availability
• Compliance with contractual commitments
• Health and Environmental targets
• Sustainability targets
• Social and reputational image
• Reporting activities
• Cost reduction
• Technical skilled personnel
• Return on investment
• Level of risk
• And others…
Obviously, each stakeholder could have different objectives. Once these are identified and the strategy to achieve them have been defined, actions and constant monitoring must be carried out.
Comparable to other certifications, such as the ISO 14000 for the correct management of the working environment, 9001 for improving the quality of the service offered or the one on safety at work, the ISO 55000 identifies the correct process for the management of an asset from a financial perspective in order to support the company to take the right decision process and deliver the greater value for the organization.
Translating the conceptual model of the Institute of Asset Management [49] in the renewable sector, some of the key elements for the management of a renewable asset are:
Planning and Strategy
This requires to an Asset Manager to translating the corporate’s objective in concreate actions assessing all internal and external factors that could affect the assets. Examples are cultural economic and social factors, competition, regulations, permits and authorizations, legal frameworks or KPIs for the monitoring of the power plant. A strategy must be implemented for each process.
Typical example of strategies regards the choice of specific contractors in order to improve the component life, how to manage the spare parts process or site visit inspection, have good relations with authorities, landowner or subcontractors. All strategies in order to maximize the performance and reduce costs.
People and Organization
In managing a renewable asset or portfolio of assets, the people must be proportionate to the size of the installed capacity. Important are the technical skills of the staff and the responsibilities of each member in contributing to the creation of the final value. Key role is the coordination of all stakeholders and other functional contractors such as O&M, EPC Contractor, suppliers, technical advisor.
Decision-making process and management during the lifecycle
An asset management means to participate, coordinate and ensure support in all the tasks to be performed guaranteeing synergies between all of them. During the overall lifecycle, the asset manager should valuate and manage the risks and costs, monitor the operating activity and resources in respect of targets, risks, legislation in force and people’s culture. All the decisions shall be taken in order to increase the return of investment of the final customer. In managing the power plant different services are offered to the client starting from the development and construction cost until to the technical, commercial and financial services with the final purpose to provide continuous monitoring and optimization process of the renewable.
Management of information
Having a digital system for exchanging information between plants or portfolios and managing technical and commercial activities is essential. An Asset Manager should implement and exploit current information tools such as smart devices, internet of things and digital platforms to implement strategic optimization processes, monitor activities at site, collect data, manage contractual and regulatory obligation, perform reporting activities and communicate with the different organizational units involved. Typical information system are ERP systems, Cybersecurity systems, SAP for the spare parts monitoring or platform for the creation of interactive dashboard.
Performance evaluation and improvement
Each plant has its objectives, leading KPIs and lagging KPIs to evaluate and improve. Moreover, based on experience, each asset has its own set of lesson learned which are of fundamental importance to an Asset Manager in order to improve current installations, avoid mistakes in the future and better manage a portfolio of assets.
In monitoring and optimizing the performance of different power plants and different client’s needs, an Asset Manager has a great experience in evaluate the performance and apply lesson learned in future power plants.