Integrating Digitalization and Asset Health Index for Strategic Life Cycle Cost Analysis of Power Converters

In the context of energy storage systems, optimizing the life cycle of power converters is crucial for reducing costs, making informed decisions, and ensuring sustainability. This study presents a comprehensive methodology for calculating the life cycle cost (LCC) of power converters, employing a nine-step process that integrates digitalization, Internet of Things (IoT) technologies, and the Asset Health Index (AHI). The methodology adapts the Woodward model to provide a detailed cost analysis, encompassing the acquisition, operation, maintenance, and end-of-life phases. Our findings reveal significant insights into asset management, highlighting the importance of preventive and major maintenance in controlling failure rates and extending asset life. This study concludes that adopting sustainable business models and leveraging advanced technologies can enhance the reliability and maintainability of power converters, ultimately leading to more competitive and environmentally friendly energy storage solutions.