Case Study: Cerius-Radius’ Asset Investment Planning Transformation
In a recent webinar, “Making the Right Decision at the Right Time”, the largest distribution system operator in Denmark Cerius-Radius shared about the highlights and benefits from their journey in transforming Asset Investment Planning and capital decision making.
Christina Jørgensen, Regional Sales Manager at Copperleaf, hosted this conversation on the driving factors behind Cerius-Radius’ decision to implement an asset investment planning (AIP) solution, and how it’s using this software to gain risk insights that enable it to define the optimal investment level for securing 10kV cables.
Introduction to Asset Investment Planning (AIP)
Michiel Ooms, Senior Solutions Consultant at Copperleaf, emphasised the growing complexity of asset management processes due to the increasing amount of asset data.
Understanding how assets are performing today and predicting future performance is crucial for making informed intervention decisions. An AIP technology solution helps organisations better manage costs, resources, and risks associated with their assets, ensuring the right intervention at the right times.
Michiel illustrated this with an example comparing two asset types, each requiring different interventions, costs, and impacts on service levels. The complexity increases when considering hundreds or thousands of assets, each with unique needs and timelines.
Here is Michiel illustrating this complexity, and examples of how an AIP solution can help navigate and manage various risks and constraints:
Without a robust planning tool, organisations might overlook critical interventions, leading to increased risks and costs. An AIP solution provides a comprehensive view, helping organisations optimise investment strategies and maintain regulatory compliance while improving process efficiencies.
Enhancing Investment Decisions with Scenario Analysis
Utilities everywhere are challenged with aging assets, electrification demands, and resource constraints. Jesper Poulsen, Portfolio Analyst at Cerius-Radius, shared how Cerius-Radius is securing the future of its 10kV cables using the Copperleaf Asset system to make timely and informed decisions.
Jesper presented about asset condition and investment needs, as well as key challenges, highlighting urgent needs to address cable deterioration. An analysis showed that maintaining the current investment level would lead to a significant increase in risks and failures, necessitating a strategic shift in their investment approach:
Based on different scenario analyses, the recommendation was to gradually increase investment to DKK 200 million annually by 2034 to mitigate the identified risks.
Cerius-Radius evaluated three investment scenarios: moderate increase, accelerated increase, and rapid escalation.
Each scenario was analysed based on key parameters such as monetised risk, failure frequency, and outage metrics. Jesper detailed the methodology used to develop these scenarios, including the use of Copperleaf Asset to model different investment levels and their impacts:
The analysis showed that while the rapid escalation scenario offered the highest risk reduction, it was not feasible due to resource constraints. The accelerated increase scenario struck the best balance, offering substantial risk reduction without overwhelming the organisation’s capacity.
The accelerated increase scenario was ultimately recommended as it provided the best balance between risk reduction and cost. The success of this project will pave the way for more effective future investment forecasts for Cerius-Radius’ other asset classes, ensuring a comprehensive and proactive approach to asset management.
Building on the Successes of Better Capital Planning
Implementing an AIP solution like Copperleaf has enabled Cerius-Radius to have better visibility of their asset base, so they can make more-informed and timely asset investments decisions. By using higher-quality data and quantifiable risk insights, they developed a strategic approach to securing their critical infrastructure—one that better aligns with organisation goals and regulatory requirements.
After calibrating and customising the software to suit business goals and needs, Copperleaf is now integral to their daily operations, particularly in predicting future investment needs and managing risks.
This journey highlights the importance of having a robust asset investment planning system that can address the challenges faced by asset-intensive organisations. Our upcoming AIP forum in Stockholm on March 6, 2025 (register here) will explore more of these case studies and insights on effective AIP.
Watch the on-demand webinar for the full presentation and audience Q&A: