SIST EN IEC 63223-1:2026

• Abstract:

  This part of IEC 63223 series [2] provides an overview of asset management, its principles and value creation options for the management of network assets in power systems.; This document can be applied to all types of network assets and by all types and sizes of power network companies. The term power network company does not necessarily refer to legally structured companies.; In this document, network assets refer mainly to the physical assets of the electrical energy network, meaning items, equipment, or systems that have potential or actual value for the electric company and are part of the power lines and substations responsible for the transmission and distribution of electrical energy. Examples of network assets that can be included in the asset portfolio of a power network company are presented in IEC 63223-2:2026 [6], 4.2.2.

• Status: Published
• Public Enquiry End Date: 31-Jul-2025
• Publication Date: 28-Oct-2026
• ICS: 03.100.01 - Company organization and management in general
• ICS: 29.240.01 - Power transmission and distribution networks in general
• Technical Committee: I11 - Imaginarni 11
• Current Stage: 6060 - National Implementation/Publication (Adopted Project)
• Start Date: 28-Oct-2026
• Due Date: 02-Jan-2027
• Completion Date: 29-Oct-2026
• Ref Project: EN IEC 63223-1:2026 - Management of network assets in power systems - Part 1: Overview, principles and terminology

• Refers: SIST ISO 55000:2017 - Asset management - Overview, principles and terminology
• Effective Date: 18-Aug-2026
• Refers: SIST ISO 55001:2014 - Asset management - Management systems - Requirements
• Effective Date: 18-Aug-2026

SIST EN IEC 63223-1:2026 is the Slovenian standard for management of network assets in power systems, published from IEC 63223-1:2026. It gives an overview of asset management, its principles, and value creation options for network assets used in electric power transmission and distribution. The document is aimed at power network companies, regulators, asset owners, service providers, and other stakeholders who need a common basis for discussing asset management decisions.

What does SIST EN IEC 63223-1:2026 specify?

SIST EN IEC 63223-1:2026 specifies the overview, principles, terminology, and value creation options for managing network assets in power systems. It applies to all types of network assets and to power network companies of all sizes, which makes it useful both for large transmission and distribution operators and for smaller organizations working in the same field.

The document treats network assets mainly as the physical assets of the electrical energy network - items, equipment, or systems in power lines and substations that create value for the electric company. It is written as the opening part of the IEC 63223 series, so it gives the frame for the rest of the series rather than detailed implementation rules.

The document is organized into these main parts:

Annex	What it covers
Annex A	Examples of value creation options
Annex B	Structure of IEC TC 123 standards

Clause 1 gives the scope, Clause 2 lists normative references, Clause 3 covers terms and abbreviated terms, Clause 4 explains the principles for asset management, and Clause 5 develops value creation options.

What are the key requirements of SIST EN IEC 63223-1:2026?

SIST EN IEC 63223-1:2026 sets out the main principles and decision themes that should guide asset management in power systems. The document is not a detailed maintenance specification; instead, it explains how asset managers should think about value, risk, long-term performance, and the role of the network in the wider energy system.

Asset management should be value-based, aligned, and led

Clause 4.1 identifies three key principles: value, alignment, and leadership. In practice, this means asset decisions should support organizational objectives, connect technical choices with business goals, and be supported by responsible leadership rather than handled as isolated technical actions.

Clause 4.1 also stresses long-term strategy, the full life cycle of assets, and improved decision-making. For readers, that means short-term cost alone is not enough: maintenance, renewal, operation, and replacement need to be assessed across the whole life of the asset.

Power networks must be managed as critical infrastructure

Clause 4.2 describes electric power systems as critical infrastructure with large scale, interdependence, complexity, and exposure to hazards, ageing, and uncertainty. This matters because network decisions can affect safety, service continuity, society, and the wider economy, not only the utility’s own costs.

Clause 4.2 also highlights the need to consider public acceptance, environmental effects, safety, and employment when deciding on investments and operating measures. In practice, asset management needs to balance company interests with wider societal value.

Core decisions cover development, operation, and life cycle management

Clause 4.3 groups asset management decisions into grid development, operation, life cycle management, and resource allocation or portfolio management. For a power network company, these are the recurring decision areas where asset management has to be applied consistently.

The clause covers grid planning, investment planning, network restructuring, implementation of investment plans, and modernization or upgrading of existing assets. It also covers operational control, where the network must be balanced in real time to avoid instability, outages, and high redispatching costs.

Life cycle actions should be optimized over the whole asset life

Clause 4.3 explains that maintain, repair, refurbish, replace, reuse, or scrap are all possible life cycle actions. The document’s point is that the right action depends on the asset condition, usefulness, risk, and performance over time, not just on a single moment of failure or replacement.

That means asset managers should decide when maintenance is still efficient, when refurbishment is better, and when replacement or reuse creates more value. The document also links life cycle management with sustainability and notes that degraded or obsolescent networks may need a risk-informed approach.

Decisions may use a risk-informed decision-making process

Clause 5.2 introduces risk-informed decision-making (RIDM) as the backbone for justifying actions that mitigate risk. The process has four steps: define the decision context, choose risk management strategies, apply managerial review and judgement, and carry out performance evaluation and improvement.

In practice, this means the organization should not treat risk mitigation as an ad hoc discussion. It should define the context, consider quantitative assessment, cautionary, or discursive strategies, and then monitor how the chosen actions perform.

Clause 5 lists major value creation options

Clause 5.3 groups value creation options into asset life cycle management, asset specification, new asset construction, effective utilization of assets, network solution, active infrastructure management, non-network solutions or supply and demand management, resilience, and data and information. These are the main routes by which network assets can create value.

For readers, the important point is that value can come from more than building new infrastructure. It can also come from better specification, reuse, shared use, flexibility, grid adaptation, resilience measures, and better use of data.

Annex A gives practical examples, not prescriptions

Annex A illustrates the options in Clause 5 with practical examples from different situations. It is informative, so it helps readers understand how the ideas can look in practice, but it is not a list of required methods.

What terms does SIST EN IEC 63223-1:2026 define?

SIST EN IEC 63223-1:2026 uses the terms and definitions from IEC 60050-693, and it also lists key abbreviated terms for the document. These abbreviations are important because they appear throughout the clauses on principles, network operation, and value creation.

• AM - Asset management: coordinated activity of an organization to realize value from assets.
• BESS - Battery energy storage system: an energy storage system based on batteries, used in the document as an example of a grid and flexibility asset.
• DSO - Distribution system operator: the organization operating the distribution network.
• GIS - Gas insulated substation: a substation technology mentioned in examples of asset life cycle management.
• RIDM - Risk-informed decision-making: the process used to justify actions for risk mitigation.
• TSO - Transmission system operator: the organization operating the transmission network.
• VPP - Virtual power plant: an aggregated, controllable combination of distributed energy resources and flexibility.

Who uses SIST EN IEC 63223-1:2026?

SIST EN IEC 63223-1:2026 is mainly intended for asset managers of power network companies and for regulators of those companies. Those users need a common vocabulary and a structured way to discuss investments, expenditures, risk, and performance.

The document is also relevant to asset owners, service providers, and other stakeholders in power network companies. In practice, they can use it to align technical plans, justify renewal or upgrade decisions, discuss resource needs, and compare value-creation options across the asset portfolio.

What changed in SIST EN IEC 63223-1:2026 from the previous edition?

SIST EN IEC 63223-1:2026 is presented as IEC 63223-1 ED1. The document itself is the overview part of the IEC 63223 series and is structured to explain principles, terminology, and value creation options for network assets in power systems.

Which standards are used with SIST EN IEC 63223-1:2026?

SIST EN IEC 63223-1:2026 cites IEC 60050-693, ISO 55000:2024, and ISO 55001:2024 as normative references.

• IEC 60050-693 provides the terminology for management of network assets in power systems.
• ISO 55000:2024 provides the asset management vocabulary, overview, and principles that form the background for this document.
• ISO 55001:2024 provides the asset management system requirements that the document refers to when discussing value creation and management systems.

The document also points readers to companion parts of the IEC 63223 series.

• IEC 63223-2 develops the requirements for a risk-informed decision-making process.
• IEC TS 63224 gives management aspects and case studies related to asset management practice in the power systems sector.

What does the SIST EN IEC 63223-1:2026 document contain?

SIST EN IEC 63223-1:2026 contains a structured explanation of asset management concepts for power networks, including principles, decision areas, and value creation options. Clause 5.2 outlines the RIDM process, while Clause 5.3 organizes the main option areas for creating value from network assets.

Annex A gives examples for each value creation option, which makes the document useful for discussion, planning, and internal alignment. Annex B shows the structure of IEC TC 123 standards and includes a framework figure that places this document within the wider series.

The bibliography points to related IEC, ISO, CIGRÉ, and other references for readers who need background material on asset management, risk, critical infrastructure, flexibility, resilience, and digitalization.

SLOVENSKI STANDARD
01-december-2026
Upravljanje omrežnih sredstev v elektroenergetskih sistemih - 1. del: Pregled,
načela in terminologija (IEC 63223-1:2026)
Management of network assets in power systems - Part 1: Overview, principles and
terminology (IEC 63223-1:2026)
Management von Betriebsmitteln und Anlagen in elektrischen
Energieversorgungssystemen - Überblick, Grundsätze und Terminologie (IEC 63223-
1:2026)
Gestion des actifs des réseaux d’énergie électrique - Aperçu général, principes et
terminologie (IEC 63223-1:2026)
Ta slovenski standard je istoveten z: EN IEC 63223-1:2026
ICS:
03.100.01 Organizacija in vodenje Company organization and
podjetja na splošno management in general
29.240.01 Omrežja za prenos in Power transmission and
distribucijo električne energije distribution networks in
na splošno general
2003-01.Slovenski inštitut za standardizacijo. Razmnoževanje celote ali delov tega standarda ni dovoljeno.

EUROPEAN STANDARD EN IEC 63223-1

NORME EUROPÉENNE
EUROPÄISCHE NORM October 2026
ICS 03.100.01; 29.240.01
English Version
Management of network assets in power systems - Part 1:
Overview, principles and terminology
(IEC 63223-1:2026)
Gestion des actifs des réseaux d'énergie électrique - Management von Betriebsmitteln und Anlagen in
Aperçu général, principes et terminologie elektrischen Energieversorgungssystemen - Überblick,
(IEC 63223-1:2026) Grundsätze und Terminologie
(IEC 63223-1:2026)
This European Standard was approved by CENELEC on 2026-08-26. CENELEC members are bound to comply with the CEN/CENELEC
Internal Regulations which stipulate the conditions for giving this European Standard the status of a national standard without any alteration.
Up-to-date lists and bibliographical references concerning such national standards may be obtained on application to the CEN-CENELEC
Management Centre or to any CENELEC member.
This European Standard exists in three official versions (English, French, German). A version in any other language made by translation
under the responsibility of a CENELEC member into its own language and notified to the CEN-CENELEC Management Centre has the
same status as the official versions.
CENELEC members are the national electrotechnical committees of Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic,
Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Norway, Poland, Portugal, Republic of North Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland,
Türkiye and the United Kingdom.

European Committee for Electrotechnical Standardization
Comité Européen de Normalisation Electrotechnique
Europäisches Komitee für Elektrotechnische Normung
CEN-CENELEC Management Centre: Rue de la Science 23, B-1040 Brussels
© 2026 CENELEC All rights of exploitation in any form and by any means reserved worldwide for CENELEC Members.
Ref. No. EN IEC 63223-1:2026 E

European foreword
The text of document 123/134/FDIS, future edition 1 of IEC 63223-1, prepared by TC 123
"Management of network assets in power systems" was submitted to the IEC-CENELEC parallel vote
and approved by CENELEC as EN IEC 63223-1:2026.
The following dates are fixed:
• latest date by which the document has to be implemented at national (dop) 2027-10-31
level by publication of an identical national standard or by endorsement
• latest date by which the national standards conflicting with the (dow) 2029-10-31
document have to be withdrawn
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. CENELEC shall not be held responsible for identifying any or all such patent rights.
Any feedback and questions on this document should be directed to the users’ national committee. A
complete listing of these bodies can be found on the CENELEC website.
Endorsement notice
The text of the International Standard IEC 63223-1:2026 was approved by CENELEC as a European
Standard without any modification.
In the official version, for Bibliography, the following notes have to be added for the standard indicated:
IEC 63223 series NOTE Approved as EN IEC 63223 series to be published
IEC 63223-2:2026 NOTE Approved as EN IEC 63223-2:2026 (not modified) to be published
IEC 61850 series NOTE Approved as EN 61850-9-2:2011/A1 series
Annex ZA
(normative)
Normative references to international publications
with their corresponding European publications
The following documents are referred to in the text in such a way that some or all of their content
constitutes requirements of this document. For dated references, only the edition cited applies. For
undated references, the latest edition of the referenced document (including any amendments)
applies.
NOTE 1  Where an International Publication has been modified by common modifications, indicated by (mod),
the relevant EN/HD applies.
NOTE 2  Up-to-date information on the latest versions of the European Standards listed in this annex is available
here: www.cencenelec.eu.
Publication Year Title EN/HD Year
IEC 60050-693 - Management of network assets in power - -
systems - Terminology
ISO 55000 2024 Asset management - Overview, principles - -
and terminology
ISO 55001 2024 Asset management - Management - -
systems - Requirements
IEC 63223-1 ®
Edition 1.0 2026-07
INTERNATIONAL
STANDARD
Management of network assets in power systems -
Part 1: Overview, principles and terminology
ICS 29.240.01; 03.100.01 ISBN 978-2-8327-1363-1

IEC 63223-1:2026-07(en)
IEC 63223-1:2026 © IEC 2026
CONTENTS
FOREWORD . 2
INTRODUCTION . 4
1 Scope . 6
2 Normative references . 6
3 Terms, definitions and abbreviated terms . 6
3.1 Terms and definitions. 6
3.2 Abbreviated terms . 6
4 Principles for asset management of power networks . 7
4.1 Overview of asset management . 7
4.2 Main characteristics of power networks . 7
4.3 Main activities related to the asset management of power networks . 8
4.4 Risk-informed decision-making process . 9
5 Value creation options . 10
5.1 General . 10
5.2 Value creation options from power network assets . 10
5.2.1 Maintenance and renewal of existing assets . 10
5.2.2 Asset specification . 11
5.2.3 New asset construction . 11
5.2.4 Effective utilization of assets . 11
5.2.5 Network solution . 11
5.2.6 Non-network solution or supply and demand management . 12
5.2.7 Resilience. 13
5.2.8 Data and information . 13
Annex A (informative) Examples of value creation options . 14
A.1 General . 14
A.2 Maintenance and renewal of existing assets . 14
A.3 Asset specification . 15
A.4 New asset construction . 15
A.5 Effective utilization of assets . 16
A.6 Network solution . 16
A.7 Non-network solution or supply and demand management . 17
A.8 Resilience . 17
A.9 Data and information . 17
Annex B (informative) Structure of IEC TC 123 standards . 18
B.1 Structure . 18
B.2 Core documents . 18
B.3 Process document . 18
B.4 Support documents . 18
B.5 Associated documents . 19
Bibliography . 20

Figure B.1 – Framework for IEC TC 123 documents . 18

IEC 63223-1:2026 © IEC 2026
INTERNATIONAL ELECTROTECHNICAL COMMISSION
____________
Management of network assets in power systems -
Part 1: Overview, principles and terminology

FOREWORD
1) The International Electrotechnical Commission (IEC) is a worldwide organization for
standardization comprising all national electrotechnical committees (IEC National Committees).
The object of IEC is to promote international co-operation on all questions concerning
standardization in the electrical and electronic fields. To this end and in addition to other
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8) Attention is drawn to the Normative references cited in this publication. Use of the referenced
publications is indispensable for the correct application of this publication.
9) IEC draws attention to the possibility that the implementation of this document may involve
the use of (a) patent(s). IEC takes no position concerning the evidence, validity or applicability
of any claimed patent rights in respect thereof. As of the date of publication of this document,
IEC had not received notice of (a) patent(s), which may be required to implement this document.
However, implementers are cautioned that this may not represent the latest information, which
may be obtained from the patent database available at https://patents.iec.ch. IEC shall not be
held responsible for identifying any or all such patent rights.
IEC 63223-1:2026 © IEC 2026
IEC 63223-1 has been prepared by IEC technical committee 123: Management of network
assets in power systems. It is an International Standard.
The text of this International Standard is based on the following documents:
Draft Report on voting
123/134/FDIS 123/140/RVD
Full information on the voting for its approval can be found in the report on voting indicated in
the above table.
The language used for the development of this International Standard is English.
This document was drafted in accordance with ISO/IEC Directives, Part 2, and developed in
accordance with ISO/IEC Directives, Part 1 and ISO/IEC Directives, IEC Supplement, available
at www.iec.ch/members_experts/refdocs. The main document types developed by IEC are
described in greater detail at www.iec.ch/publications.
A list of all parts in the IEC 63223 series, published under the general title Management of
network assets in power systems, can be found on the IEC website.
The committee has decided that the contents of this document will remain unchanged until the
stability date indicated on the IEC website under webstore.iec.ch in the data related to the
specific document. At this date, the document will be
– reconfirmed,
– withdrawn, or
– revised.
IEC 63223-1:2026 © IEC 2026
INTRODUCTION
Background
The IEC white paper "Strategic asset management of power networks" was published in 2015
[1] and TC 123 was established the following year to develop a management standard covering
power network assets.
This white paper and power network sector specific asset management standards (TC 123, IEC
63223 series [2]) were initiated by the CEO of a power network company who found that some
sections of asset management system standards (ISO 55000 series [3]) were very generic and
as such the requirements were not easy to follow and to discuss with the country's regulatory
authority.
The scope of TC 123 is "standardization to deliver, in co-operation with other TC/SCs and
international organizations, common methods and guidelines for coordinated lifetime
management of network assets in power systems to support good asset management". This
possibly includes the development of new methods and guidelines. Asset management is
defined as "coordinated activity of an organization to realize value from assets" in ISO
55000:2024, 3.2.1, which is part of the ISO 55000 series [3] (comprising ISO 55000:2024, ISO
55001:2024 and ISO 55002:2018 [4]).
The structure of the deliverables produced by TC 123 is specified in Annex B. In addition to this
document, the other standards published or under development include:
– IEC 60050-693 which defines the relevant terms used in the context of the management of
network assets in power systems;
– IEC TS 63224:2025 [5] which explains management aspects and provides case studies
related to asset management practices or implementation of an asset management system,
in the power network sector;
– IEC 63223-2:2026 [6] based on the approved new work item proposal (NP) 123/47/NP [7],
which explains the requirements for the development of a risk-informed decision-making
process within asset management.
One of the comments on the NP 123/47/NP and on the CD of IEC TS 63224:2025 [5] was: "The
scope is supposed to be about realizing value from power network assets, but it is biased
towards only reducing the risk of existing assets. TC 123 should have a broader scope".
Therefore, it was decided at the 2022 plenary meeting to create a new project, IEC 63223-1, to
present an overall picture that includes value creation as well as asset risk mitigation.
The purpose of this document, IEC 63223-1, is to provide an overview of the scope of the
whole IEC 63223 series [2], with principles and terminologies. The purpose of the IEC 63223
series [2] is to create power network sector-specific International Standards for the ISO 55000
series [3].
Users
The main intended users are:
– asset managers of power network companies;
– regulatory authorities of the power network companies.
Other assumed readers include:
– asset owners and service providers of power network companies;
– stakeholders of the power network companies.
IEC 63223-1:2026 © IEC 2026
It should be noted that this document has been prepared in such a way that the reader can
understand it to some extent by reading this document alone, but it assumes that the reader
has a basic knowledge of the ISO 55000 series [3].
Structure of this document
This document consists of three major parts after the scope in Clause 1 and the normative
references in Clause 2:
– Clause 3: Terms, definitions and abbreviated terms:
While IEC 60050-693 specifies terms for management of network assets in power systems
for the whole IEC, terms used only in the IEC 63223 series [2] and not in IEC 60050-693
should be described in IEC 63223-1. Terms in IEC 63223-1 can be integrated in IEC 60050-
693 later, if appropriate.
– Clause 4: Principles for asset management of power networks:
The ISO 55000 series [3] specifies an asset management system, i.e. the general
requirements for value creation. Clause 4 describes the principles for asset management of
power network assets, including the main characteristics of power networks, the main
activities related to asset management decisions and the risk-informed decision-making
process associated with asset risk mitigation. This process is detailed in IEC 63223-2:2026 [6].
– Clause 5: Value creation options:
There are various options of value-creating activities for power network assets, including
reducing risk and taking advantage of opportunities. Clause 5 describes those options.
– Annex A gives examples of value creation options;
– Annex B shows the current structure of the TC 123 standards.
IEC 63223-1:2026 © IEC 2026
1 Scope
This part of IEC 63223 series [2] provides an overview of asset management, its principles and
value creation options for the management of network assets in power systems.
This document can be applied to all types of network assets and by all types and sizes of power
network companies. The term power network company does not necessarily refer to legally
structured companies.
In this document, network assets refer mainly to the physical assets of the electrical energy
network, meaning items, equipment, or systems that have potential or actual value for the electric
company and are part of the power lines and substations responsible for the transmission and
distribution of electrical energy. Examples of network assets that can be included in the asset
portfolio of a power network company are presented in IEC 63223-2:2026 [6], 4.2.2.
2 Normative references
The following documents are referred to in the text in such a way that some or all of their content
constitutes requirements of this document. For dated references, only the edition cited applies.
For undated references, the latest edition of the referenced document (including any
amendments) applies.
IEC 60050-693, International Electrotechnical Vocabulary - Part 693: Management of network
assets in power systems - Terminology
ISO 55000:2024, Asset management — Vocabulary, overview and principles
ISO 55001:2024, Asset management – Management system – Requirements
3 Terms, definitions and abbreviated terms
3.1 Terms and definitions
For the purposes of this document, the terms and definitions given in IEC 60050-693 apply.
ISO and IEC maintain terminology databases for use in standardization at the following
addresses:
– IEC Electropedia: available at https://www.electropedia.org/
– ISO Online browsing platform: available at https://www.iso.org/obp
3.2 Abbreviated terms
BESS Battery energy storage system
CIGRE Conseil international des grands réseaux électriques; International Council on Large
Electric Systems
DSO Distribution system operator
RIDM Risk-informed decision-making
TSO Transmission system operator
VPP Virtual power plant
IEC 63223-1:2026 © IEC 2026
4 Principles for asset management of power networks
4.1 Overview of asset management
According to ISO 55000:2024, asset management is a fundamental, organization-wide activity
that involves all levels, departments, and various disciplines to deliver value from assets in
alignment with organizational objectives. It requires decision-making that balances
performance, risks, opportunities, and costs across the asset life cycle. Asset management is
based on three key principles :
a) value, focusing on the contributions that assets make to long-term goals;
b) alignment, ensuring that financial, technical, and operational decisions are coordinated both
vertically and horizontally throughout the organization;
c) leadership, establishing a clear direction and sustaining commitment at all levels.
The CIGRE Technical Brochure 787 [8] provides detailed information on the implementation of
the ISO 55000 series [3] of standards in the field of power networks. It includes, for example,
the essential characteristics of asset management that differ from other management systems,
such as:
d) the necessity of a long-term strategy to ensure sustainable and efficient management;
e) the focus on the entire life cycle of assets to maximize value and performance;
f) an approach that enhances decision-making.
Therefore, focusing solely on cost and short-term performance can create situations where
value is reduced over the life of the asset.
4.2 Main characteristics of power networks
The main missions of a power network company can include, but are not limited to the following:
a) connecting any new power generation plant to the grid;
b) supplying any consumer;
c) managing supply-demand balance.
Electric power networks have specific structural and operational features, such as:
d) Power networks are complex systems characterized by [9]:
1) structural complexity: a large number of heterogeneous interconnected assets, with
different roles and technologies and connected to other systems such as power plants,
distributed energy sources, storage components and industries. A power network
consists of assets that interact in real time. The supply-demand balance shall be
achieved on a second-by-second basis;
2) dynamic complexity: local failures evolving to cascade failures leading to catastrophic
consequences.
e) Power networks are vulnerable to a variety of challenges such as natural hazards and
ageing components. Power network companies face uncertainty and associated unwanted
consequences when managing power network assets. One classic example of uncertainty
is the lifetime of an asset. Power network operators can rely on the rule of N-1 redundancy
to preserve the quality of service that can be considered as an example of a precautionary
measure: the failure of one asset has no consequence on continuity of supply, limiting the
potential for catastrophic electrical disturbances, however it does impact the resilience of
the supplies to further asset failures. Nevertheless, this does not mitigate other types of
consequences, such as environmental, safety, or financial consequences.
NOTE The N-1 criterion is a fundamental principle in the operation and planning of power networks. It requires that
the network is able to withstand the loss of any single major component, such as a transmission line, transformer, or
generator, without causing widespread service interruption or violating system operational limits. Compliance with
the N-1 criterion ensures that the network can maintain continuity of supply and stability even in the event of an
unscheduled outage of one system element.
IEC 63223-1:2026 © IEC 2026
f) Power networks are usually regulated systems with a geographic monopoly: strategic
organizational and asset management objectives are typically discussed by the regulatory
authority and the power network company, but increasing pressure is placed on power
network companies to justify their asset management decisions, the corresponding financial
requirements, and the needed human resources. Cost management is one everyday
challenge in the asset management trade-off between cost, risk, and performance.
Electric power networks are also identified as critical infrastructures [10], as they are large scale
networks for transmission and distribution of electricity, which is considered as an essential
element for the operation of all other infrastructures, such as water supply, telecommunications,
railways, or airports. The failure or destruction of the infrastructure can lead to significant
damage to the concerned society in several domains such as safety, health, economy,
environment, social well-being.
Transnational infrastructures such as interconnected power networks and industries can also
be impacted. Electric power networks' criticality will continuously increase with the
electrification of heating, transportation, and other sectors. The capacity and the reliability of
transmission and distribution networks are key to enable power system organizations to meet
their organizational objectives.
Being a critical infrastructure of general interest implies consideration of external factors to
make decisions that maximize the value for the whole society, such as public acceptance, public
safety, local and global environment protection (e.g. natural area, CO generation, raw material
consumption) and local employment, and not only the profit for the power network company.
The asset management of critical infrastructures with many uncertainties should rely on a
relevant risk management process, based on the state-of-the-art risk theory. Particular attention
is required to consider both the physical phenomena in a causal chain of events, and to go
beyond the probabilistic calculations based on models to respond effectively in case of
surprising events.
4.3 Main activities related to the asset management of power networks
Asset management decisions in power networks involve contributions from multiple
organizations and activities across the asset life cycle (from planning, acquisition, operation
and maintenance to renewal and disposal). Each stakeholder, such as asset owners or power
network operators, can have different objectives, but effective asset management requires
coordination to align these interests and ensure the reliable, efficient operation of the overall
power network, according to the asset management objectives.
The main activities related to asset management decisions include, but are not limited to, those
presented as follows:
a) Grid development:
1) Grid planning: The grid is designed to connect available generation plants and supply
consumer needs. Long-term trends in generation and consumption are uncertain, with
scenarios published by national energy agencies providing reference ranges. It is
possible that the precise location and capacity of large new generators (e.g. wind farms)
or consumers (e.g. data centres, factories) will not be known at the planning stage.
2) Investment planning: Grid planning relies on models and hypotheses of generation and
consumption to develop investment plans. These plans typically cover onshore and
offshore development, as well as interconnection projects.
3) Network restructuring: Network restructuring addresses issues caused by ageing or
obsolescence and provides an opportunity to align with energy transition goals. Studies
should synchronise the renewal of existing assets with the development of new
infrastructure to support increased electricity demand.

IEC 63223-1:2026 © IEC 2026
4) Implementation: Key steps for implementing investment plans include technology
selection, engineering studies, procurement, construction, and commissioning.
Transmission system operators (TSOs) and distribution system operators (DSOs) are
encouraged to share their investment plans with service providers to allow alignment of
resources and competencies.
5) Modernization and upgrading of the existing assets: The replacement of the existing
assets which are not at the end of their service life in order to modernize or upgrade, or
both, the existing systems.
b) Operation: Operation of the power network considers elements such as the network
topology, health and safety, the reliability of existing assets, the interconnection capacities,
and the climate hazards. The operators continuously take corrective actions through control
systems to balance the supply and demand for electricity in real-time, and to maintain the
reliability and the stability of the grid to prevent disruptions, such as blackouts. The
inadequacy of the capacity of the network can generate high re-dispatching costs, penalty
costs and unplanned outages. Grid planning objective is to mitigate and prevent inadequacy
of capacity, to ensure the good operation of the network over time.
c) Maintenance and renewal of existing assets: Maintain, repair, refurbish, replace, reuse or
scrap are possible actions for managing assets. Coordination and optimization of
maintenance and renewal actions throughout the life cycle of a network asset are part of
the asset life cycle management. It offers a wide range of benefits that go beyond just cost
savings. It contributes to improved efficiency, compliance, sustainability, and overall
organizational effectiveness. Moreover, for degraded or obsolescent networks, or when the
limits of allowed resources generate higher risk or lower performance, or both, it is time to
complement the asset-oriented approach with a risk-informed approach.
d) Resources allocation and portfolio management: The organization should evaluate the total
resources required to implement all asset management plans, including those related to
existing assets and grid development. In situations where available resources are
insufficient to meet the total needs, strategies for managing these constraints should be
considered. This can include assessing whether to adjust performance objectives or to
allocate additional resources. When the value creation is driven by risk mitigation, the
potential consequences of prioritizing certain actions over others should be analysed with
respect to asset management objectives and the criteria used for decision-making.
In the context of a power network company, resources can include budgets, internal and
external workforce, planned outage capacities, and capacities of power network equipment
suppliers.
4.4 Risk-informed decision-making process
The risk-informed decision-making (RIDM) process is the backbone for justifying and deciding
actions for mitigating the risks. The collaboration of many entities of the organization is essential
for the implementation and for the performance of the process.
The RIDM process consists of four specific steps:
a) risk decision-making context: context clarification, qualitative description of risks,
knowledge characterization, stakeholders' concerns identification;
b) risk management strategies: depending on the risk decision-making context, three main risk
management strategies can be used (quantitative risk assessment, cautionary principle, and
discursive strategy). When enabled by solid knowledge, using quantitative models is a
recommended approach to guide investment decisions by evaluating the performance of
risk mitigation solutions. Caution is also needed, as the value of risk can evolve over time
due to changes in context;
c) managerial review and judgement: discussion on performance of risk mitigation options.
Evaluation of resources needed for risk-mitigation implementation and potential impacts and
constraints on shared resources (e.g. workforce of specific maintenance teams);
IEC 63223-1:2026 © IEC 2026
d) performance evaluation and improvement: implementation of the asset management plan
monitoring, deviation from forecast analysis, knowledge improvement on risk
characterization.
IEC 63223-2:2026 [6] details the requirements for the implementation of a risk-informed
decision-making process. The power network company should define and use a RIDM process
to justify the decisions for the management of network assets in power systems.
5 Value creation options
5.1 General
Value is defined as the outcome of meeting the needs and expectations expressed by internal
or external stakeholders. As such, value is specific to each organization. IEC TS 63224:2025
[5] provides examples of stakeholder expectations in the context of power networks, as well as
examples of asset management objectives, asset management policies and asset management
strategic plans. Value creation is either related to developing new opportunities for stakeholders
or to mitigating risks in relation to unwanted consequences on value.
Options to create value for a power network include but are not limited to the items in 5.2.
5.2 Value creation options from power network assets
5.2.1 Maintenance and renewal of existing assets
Routine maintenance of an asset during its useful life is generally an efficient practice to achieve
health and safety requirements and to reduce the total life cycle expenses. Conversely, it can
be a waste of resources at the end-of-life stage. For certain assets, monitoring can be justified
by a cost-benefit approach. In case of difficulty in planning an outage, live-line working can be
a valuable option.
Enhanced maintenance, repair, refurbishment, and replacement are chosen considering the
balance of reduced risk and cost of each option for performance along the life cycle. Replacing
deteriorated assets with new assets decreases the probability of failure; this can be a valuable
solution for assets having a critical role in the network.
Sustainability analysis can generate new practices aiming to extend the lifetime in operation
before disposal, for example:
– reusing a replaced asset in a different place of the network where the consequence of failure
is low;
– extending useful life by partial refurbishment, or by de-rating of the asset;
– keeping assets with degraded functionality in operation can be considered, provided that a
risk assessment demonstrates that this does not compromise safety, reliability, or regulatory
compliance. Additional cautionary measures can be considered to ensure an acceptable
level of performance. For example, it can be acceptable to keep a remote-controlled
disconnector, which has lost its remote-control functionality, in operation for a defined period
until replacement. The teams responsible for operating this electrical area can be informed
of this loss of remote control and adjust operating schemes and contingency measures
accordingly.
In addition, sustainability analysis can also lead to replacement of certain assets (e.g. polluted
with PCB, recurrent SF leaks) before their end of life by a new eco-friendly type of asset.
See examples in Clause A.2.
IEC 63223-1:2026 © IEC 2026
5.2.2 Asset specification
When deciding asset specifications, life cycle cost and cost benefit analysis should be favoured.
Better specification can balance cost, risk, and performance and increase long term value. Life
cycle assessment information can be considered for the choice of a technology. Sustainability
requires a conservative approach to the use of resources, considering the embedded carbon
cost of each asset investment and adoption of eco-friendly solutions. Low-tech, low-impact,
low-waste and refurbishable assets can be a valuable option for design. Setting asset
specifications to maximize the value and setting qualification tests (type-tests and endurance
tests) to guarantee the quality of the purchased equipment are good practices.
See examples in Clause A.3.
5.2.3 New asset construction
a) Connection: new assets are typically built, when new power generation plants (onshore or
offshore) are constructed or when demand increases, such as for the connection of
industrial customers. Additional situations that can require the creation of new assets
include improving the resilience of a specific area or developing interconnections. These
examples are not exhaustive. Addressing demand and power supply is considered essential
because it naturally generates value. Many countries are counting on an increase in
electricity consumption to decarbonize their industrial production, gain energy
independence and control price. As mentioned in 4.2, the construction of transmission
assets takes a long time. Therefore, it can be worth considering proactively constructing
assets based on future predictions before actual connection-applications are accepted.
b) Long-term optimization: when replacing assets or connecting new demand or generation, it
is valuable to undertake a thorough analysis of expected future requirements. Assessing
factors such as projected load growth, technological trends, and local development plans,
using appropriate modelling and planning tools, can support decisions that ensure assets
are optimally sized and selected to meet both current and anticipated needs. For instance,
in areas experiencing rapid change, restructuring the electric network through coordinated
disposal, refurbishment, and construction, informed by strategic forecasting, can deliver
greater long-term value than a simple one-for-one replacement.
See examples in Clause A.4.
5.2.4 Effective utilization of assets
In many cases, power network assets can be used for additional purposes beyond electricity
supply, regardless of whether they are publicly or privately owned. Examples include installing
telecommunication equipment on utility poles or in underground tunnels or placing power cables
in railway infrastructure. Such asset sharing or multi-purpose use can create value, such as
rental income or reduced installation costs, but requires careful assessment of associated
costs, risks, and operational constraints.
For instance, there can be an increased complexity in access and maintenance, or potential
impacts on asset life cycles and safety requirements. Coordinated planning and decision-
making frameworks are essential to fully understand the benefits and challenges of such
arrangements.
See examples in Clause A.5.
5.2.5 Network solution
In value-creating activities, the previous subclauses addressed actions performed on the assets
themselves. However, in the context of power networks, there are also actions that adjust the
network configuration and operation, rather than the assets themselves. Ageing of the assets
to a degraded state, inadequacy of the assets, or inadequacy of the grid schema to the system
current and future needs can all drive the re-structuring of the network.
IEC 63223-1:2026 © IEC 2026
a) Operating an electric network to the limit of its capacity can be a high-risk strategy, as it
involves pushing the grid's infrastructure to its maximum capabilities. This approach is
typically reserved for emergency situations or short-term demand surges (large extreme
heatwaves or extreme cold weather conditions) and is not sustainable in the long run.
b) Smart grids: utilities are implementing smart grids that enable two-way communication
between the utility and consumers. This allows for dynamic pricing and demand response
programs. For instance, during periods of high demand, the utility can send signals to smart
thermostats to adjust temperatures or to electric vehicle chargers to delay charging,
reducing strain on the grid.
c) Grid-integrated energy storage: advanced energy storage systems, such as large-scale
lithium-ion batteries, are integrated into the grid. These batteries can store excess
renewable energy during times of low demand and release it when demand is high, thereby
balancing the grid. With the increased development of renewable energies and in particular
photovoltaic solar energy, the challenge of tomorrow is to coincide consumption with times
when carbon-free production will be abundant, particularly in the middle of the day. Battery
storage can be a valid option to complement demand management programs (see 5.2.6).
d) No-regret network re-structuring plan: considering generation and consumption scenarios
and the attached uncertainties in the long term, TSOs and DSOs adapt the network
continuously to prevent a supplier workforce shortage caused by too many replacement
projects and the associated decreased service performance. A practical option is to create
no-regret plans. Such plans identify infrastructure that is required for whatever scenario will
take place. The decisions to refurbish existing and/or build new infrastructure can thus be
made in good time to meet the planned commissioning date.
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