Asset management is set to become a key differentiator in the transport sector’s energy transition

Background

Asset management is a process that consists in optimising the financial, technical and environmental performance of an item of infrastructure or equipment in order to reduce total cost of ownership over its lifespan. This total cost can be broken down into two main categories of expenses: investment costs related to the asset’s design and implementation (capex) and ongoing costs associated with operating and maintaining the asset throughout its service life (opex).

Laurent Mezzini, Business Unit Director, Railway Systems at SYSTRA answers our questions

How does asset management contribute to the energy transition?

Laurent Mezzini : In two ways. First, when it involves extending the service life of a tram from 20 to 40 years, for example, asset management improves a system’s overall energy and environmental impact by avoiding the energy consumption and emissions associated with building new equipment. Second, asset management takes into account the energy efficiency and emissions profile of each asset, enabling us to reduce their environmental footprint and prioritise energy conservation.

How has it become a strategic component in the transport sector's energy transition?

Laurent Mezzini : In the past, energy accounted for a relatively minor portion of the costs associated with transport. As a result, the incentive to spend money on improving energy efficiency and reducing emissions was somewhat limited. And it was primarily driven by the public authorities, through legislation and financial incentives such as bonus/penalty schemes and carbon taxes. Only a few large networks actually had the capacity to implement clearly structured programs.

Today, that’s all changed because of the energy transition, which aims to radically transform the way energy is produced and consumed over the next 30 years. The watchword today is end-to-end asset management, with carbon objectives integrated into every stage in an asset’s lifespan, from design to operation and maintenance, through to end of life. This means that the impact on these carbon objectives can be taken into account when planning refurbishment or maintenance projects, for example, and not just for the asset in question but for the entire network.

On average, infrastructure has a lifespan of 80 to 100 years and rolling stock 20 to 50 years. Who knows how much energy, or a tonne of CO2, will cost in 10, 20, 30, 40 or 50 years? Nobody knows for sure. But it’s probably safe to say that their value will increase significantly over the coming years, and that energy availability and price volatility will become key concerns.

How will taking energy factors into consideration affect the design and planning of transport infrastructure?

Laurent Mezzini : The first impact will be in the design phase. To limit the total cost of an asset, usage, climate and technology trends need to be anticipated right from the initial investment. Also, energy prices and cost per tonne of CO2 are going to have a much bigger impact on capex and opex than before. The various scenarios relating to these costs therefore need to be taken into account in the asset management process to ensure the right decisions are made from the get-go.

 

At SYSTRA, we’ve developed solutions for simulating, evaluating and consolidating energy transition scenarios, in order to help our customers with their asset management process. One example is our CarbonTracker . Backed by a carbon database compatible with building information modelling (BIM) technology, this solution measures, monitors and controls carbon emissions at every phase of a project. When we talk about limiting emissions, people often think of the operational phase. But our experience indicates that, for certain networks such as trams, the emissions generated by building the infrastructure can actually be higher than those associated with operating it.

Asset management can notably help to better plan things like refurbishments in the middle of an asset’s service life and the transition from diesel to cleaner, alternative technologies.

What impact is energy performance going to have on the operation and maintenance of public transport?

Laurent Mezzini : Managing energy consumption and carbon emissions is going to be a critical issue over the coming decades. With energy representing a growing portion of operating costs and new regulations emerging in relation to carbon emissions, the trend is already evident. To provide an overview of how energy performance is going to impact the operation and maintenance of public transport in coming years, here are some real-world examples:

  • In France, around 1,000 regional trains are close to the halfway point in their lifespan and 700 diesel trains are still operating. At the same time, public transport has been opened up to competition, leading to the arrival of new players. Fleet greening projects, scheduled to coincide with refurbishment projects, offer numerous opportunities to enhance energy efficiency and reduce emissions. This requires some forward thinking on behalf of the contracting authorities, in this case the Regions.

  • France’s trams are also close to halfway through their lifespan. While they already operate via electric traction, their efficiency can be improved by working on aspects like heating, ventilation and air conditioning (HVAC), lighting and motor efficiency.

  • Maintenance depots are also big energy consumers. In this case, significant improvements can be made by looking not only at lighting and HVAC systems, but also at the energy efficiency of the buildings themselves.

  • Converting bus fleets to alternative fuels is one of the key components of the energy transition. The aim is to replace diesel buses with systems comprising buses that run on electricity or biogas, together with the relevant charging infrastructure. The challenges involved in these projects include optimally sizing the fleet and infrastructure and managing smart charging systems, spikes in demand and the associated energy contracts.

  • In metro networks, phasing between acceleration and braking can be used to limit spikes in energy demand, while also optimising energy recovery. These improvements can be achieved by automating metro lines, which also enhances transport system resilience and reduces operating costs.

Conclusion

All these challenges come with a cost, and successful asset management requires a joint, comprehensive approach. It’s therefore crucial that all the various stakeholders in the transport ecosystem – from public transport authorities to manufacturers and operators – get onboard to work towards this common aim.