Justifying Electrical Infrastructure Investments with Data-Driven Project Studies
Investing in electrical infrastructure, whether it’s a new substation, a distribution system upgrade, or a network expansion, requires more than just good intentions. To secure stakeholder buy-in, align budgets, and ensure safe operations, every project must be backed by a rigorous, data-informed justification study.
Aligning Technical Needs with Business Value
When done right, an electrical project justification study lays the foundation for confident decision-making. It connects technical upgrades to broader business goals such as increasing reliability, supporting growth, and meeting regulatory requirements, rather than addressing isolated issues in a vacuum.
A justification study also helps reduce operational risk by modeling system reliability and identifying single points of failure. With this insight, teams can prioritize capital spending and avoid unplanned electrical outages that threaten safety and production.
These studies improve budget confidence as well. Phased cost estimates – starting with high-level Class IV and progressing to more detailed Class II – give stakeholders the clarity needed to support funding decisions.
Finally, electrical project justification reports help accelerate decisions. Clear, structured summaries and supporting data translate complex technical details into insights accessible to plant leadership, engineering teams, and financial sponsors alike.
What a Structured Study Typically Includes
Every justification study follows a structured process designed to deliver both technical depth and business relevance. It begins with a site and system assessment, where one-line diagrams, protective relay schemes, load histories, and maintenance records are reviewed. Field surveys and performance data help confirm the current state of infrastructure and operating conditions.
Next, load and reliability analysis uses modeling software to simulate system performance under current and projected loads. Short-circuit and voltage-drop studies assess system resiliency and highlight potential limitations.
In the risk evaluation phase, aging components, availability of spare parts, and safety or environmental concerns are all identified. These risks are scored using a likelihood-impact framework to highlight high-priority issues.
The alternatives development stage explores technical solutions such as targeted rehabilitation, incremental upgrades, or full replacements. Each option is analyzed based on lifecycle cost, construction complexity, and operational impact.
Cost estimating and scheduling normally provides both Class IV and Class III estimates. These include labor, materials, escalation, and contingencies. A phased execution plan that aligns with operational windows and minimizes downtime will also be proposed.
Finally, a comprehensive report presents all findings in a structured format. This includes an executive summary, recommendations, and detailed appendices including electrical one-lines, equipment data sheets, study results, and RFI responses. The report becomes a key resource for internal approvals and future project planning.
While covering all stages is recommended to maximize value, the study can be tailored to meet specific client needs or constraints.
What You Can Expect to Receive
A well-executed electrical infrastructure justification study results in documentation that not only informs decisions, but also lays the groundwork for design and implementation. Typical deliverables include:
- Executive summary and recommendation matrix
- Risk register with prioritized mitigation actions
- Load flow and short-circuit study summaries
- Class IV and Class III cost estimates
- Phased implementation schedule
- Supporting drawings, data tables, and appendices
Real-World Results: Preparing for Growth and Mitigating Risk
A large Gulf Coast refinery recently faced reliability challenges due to an aging electrical substation and limited system redundancy. The facility relied heavily on a single transformer, leaving critical units exposed to prolonged outages in the event of failure.
Becht was brought in to conduct an independent justification study. The team analyzed equipment condition, modeled reliability risks, and developed solution options that addressed both operational constraints and long-term growth. The recommended plan included reconfiguring the distribution system, building a new substation with dual 138 kV/12.47 kV transformers, and implementing a double-ended supply strategy.
As a result, the projected probability of annual failure was reduced from 27 percent to just 6 percent. The plan also allowed for phased implementation during scheduled turnarounds, minimizing disruption to ongoing operations.
Why a Justification Study Pays Off
With a comprehensive justification study in hand, your organization can:
- Speed up project approvals through clear, defensible documentation
- Minimize surprises by uncovering risks and constraints early
- Allocate capital more effectively by focusing on high-return, high-reliability improvements
- Ensure a smoother transition to engineering with well-structured deliverables
Build a Stronger Case for Investment
Electrical infrastructure projects are too important to move forward without a solid foundation. Becht’s Project Justification Service helps clients make informed infrastructure decisions through tailored justification studies that are both structured and objective. Our specialists combine engineering expertise with industry insight to turn complex technical challenges into compelling business cases – allowing you to proceed confidently with the right solution at the right time. Contact Becht to learn how we can support your next step.
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