It is therefore essential to consider energy transition through the asset management lens. The need for a power plant should trigger the need to think “green” and more environmentally sustainable energy solution, which will lead to rethink the asset design.
A transit agency that commits to using zero-emission vehicles will need to consider how it will operationally be equipped to manage the new changes. Some of the considerations will be performing asset modifications, procurement of new inventory, training staff, safety considerations, new policies and guidelines throughout the implementation and life cycle of assets under consideration. It is no longer just about focusing on the technical aspects of the transition, it’s much more than that!
The introduction of new asset classes - for example, in the case of electric vehicles, charging stations - would introduce new responsibilities. Effective management of these assets require attention in terms of finances and human resources. The challenges arising from this new paradigm shift are causing organizations to rethink the pace of change and influence their implementation decisions. Hence, change management becomes even more critical during this transformation.
In the process of phasing out assets as part of the transition, many assets carry the risk of being abandoned.1 These may include fossil fuel power plants (to be closed), thermal generators, and even buildings.
The International Renewable Energy Agency (IRENA) estimates that this risk may lead to the abandonment of energy infrastructure assets worth over USD 11 trillion.2