A New Model for Calculating the Cost of Operation for Different Types of Energy Distribution Systems in a Comparative Way

In the power distribution industry, budgets are typically allocated for both asset development and operational costs. The development of each asset depends on factors such as the growth rate of power demand and the cost of the asset. Additionally, The total asset's number within the network impacts the overall development budget. Operational budgets primarily account for maintenance management, fault rectification, and system losses. This article examines the allocation of operation and development budgets in power distribution and transmission networks. Findings reveal that the operational budget often surpasses the development budget in the transmission sector, indicating a prevalence of aging or defective assets. Furthermore, the analysis of service rates suggests that the value of assets in the distribution sector is generally higher than in transmission networks. The study also highlights the impact of revenue fluctuations on the return on investment, demonstrating that increased operational efficiency can substantially shorten the payback period for investments in power distribution systems.