EverExceed has drawn on a long field experience in supplying batteries for
telecom applications to identify Five Golden Rules for a TCO analysis that will result in a fully informed smart decision. These five golden rules will be discussed in this forum in a weekly series. To continue this series today we are going to describe rule number 4.
The Total Cost of Ownership calculation is a decision-making tool. Selecting the right input parameters is key to building the TCO calculation report and to then make the correct decision. The specific parameters are unique to a customer needs and their site profile. For example, if we consider a hybrid site these could be the main parameters:
• Charging time per cycle – which impacts the run time of the diesel gensets
• Number of cycles per day – how many starting operations each day?
• Total charging time per day – again impacting the run time of the diesel generators
• What level of autonomy – backup hours – is required?
• How deeply will the battery be discharged, as this influences the battery aging?
• How will fuel prices fluctuate over the next 10 years (OPEX factor)
• What is the initial cost of the battery (CAPEX factor) and what is its life (how many times will it need to be replaced)?
However, for an on-grid site these might be the parameters:
• Cost of energy per kWh
• Cost of installer – will it be in rural or urban areas?
• Yearly inflation projections
• Cost of additional equipment such as LVDs etc and voltage compensation
Whatever the site and the parameters selected, the shortest return on investment (ROI) will indicate the optimum solution.
You should choose a simple key target to make your decision. Typical examples might be to reduce fuel spending at a hybrid site by 50 percent, to reduce HVAC costs or to achieve ROI in four years.
