In the utility sector, change is incremental, measured, and deliberate, for good reason. With a mandate to deliver reliable, safe, and affordable power, Asset Managers must navigate a complex landscape of aging infrastructure, evolving regulatory demands, and the integration of distributed energy resources. Today, that responsibility is growing even heavier. Aging assets must remain in service longer, while new technologies like BESS and DERs complicate grid operations. And all of this must be achieved within constrained capital and O&M budgets.
Condition-Based Maintenance (CBM) offers a compelling solution, not as a novel idea, but as an established and increasingly necessary evolution of maintenance strategy. The utility industry has long recognized the value of aligning maintenance with asset conditions rather than rigid schedules. What has changed is the availability of scalable, utility-grade technologies that now make CBM feasible across a wider array of critical infrastructure.
Why Traditional Maintenance Models Are No Longer Sustainable
Scheduled inspections and time-based maintenance practices rely on generalizations about asset lifespan, which often result in inefficiencies. Maintenance crews are dispatched to inspect or service equipment that may be operating perfectly, while other components that are actually deteriorating remain undetected between inspection cycles. These inefficiencies not only waste valuable resources but also increase the risk of failure.
As grid infrastructure becomes more complex, particularly with the addition of BESS, solar, and other renewable assets, the limitations of scheduled maintenance are even more pronounced. These newer technologies can behave unpredictably under certain conditions, and faults may only present themselves intermittently. Without real-time visibility, these issues can go unnoticed until a disruptive or costly failure occurs.
The Business Case for Condition-Based Maintenance
Condition-Based Maintenance refocuses maintenance activities based on the actual condition of equipment, as determined by real-time and trend data. This strategy is enabled by continuous monitoring technologies, such as thermal and visual sensors, that can identify early indicators of equipment stress, degradation, or potential failure, from temperature anomalies to insulation breakdowns.
The financial case for CBM is strong. Utilities that have adopted CBM strategies have seen O&M cost reductions of up to 30% by minimizing unnecessary inspections, reducing emergency repairs, and extending the service life of assets. According to a report by McKinsey & Company, utilities implementing predictive maintenance as part of grid digitization strategies can reduce maintenance costs by 10–40% and outage durations by up to 50%. CBM also supports reliability metrics, improves system resilience, and enhances regulatory compliance by offering a more transparent and data-driven view of asset health.
Acknowledging the Complexity: CBM Requires Structural Change
Transitioning to Condition-Based Maintenance is not simple. It requires more than just new sensors or software, it calls for a rethinking of workflows, roles, and interdepartmental coordination. Maintenance planning must shift from a prescriptive to a predictive mindset. Teams must be trained to interpret condition data and act accordingly, and asset health insights must be integrated across platforms like SCADA, GIS, and APM systems.
This is not an overnight shift. Utilities that have successfully implemented CBM typically begin with a targeted rollout, focusing on high-value or high-risk assets. From there, they develop internal expertise, refine workflows, and expand implementation based on proven returns. The transition is challenging, but it is manageable and ultimately transformative.
Aligning CBM With Asset Management Strategy
CBM aligns directly with the objectives of Asset Management teams: maximize asset value, manage risk, and optimize long-term performance. By feeding asset health data into performance and risk models, CBM enables more nuanced and effective capital planning. Decisions can be made based on actual conditions rather than defaulting to time-based triggers.
For instance, instead of replacing equipment solely based on age, asset condition data might reveal that it remains within acceptable operating parameters, allowing investment to be deferred. Conversely, an asset that appears younger on paper but is showing signs of accelerated degradation can be prioritized for replacement. This level of precision allows utilities to justify budget requests with evidence, defer capital where appropriate, and direct limited funds to where they will deliver the most value.
Enabling CBM With Continuous Monitoring Solutions
Successful CBM requires dependable, continuous data from assets in the field. Visual and thermal monitoring solutions designed for utility environments provide that visibility. These sensors detect anomalies that often precede mechanical or electrical failures, such as hotspots, loose connections, or unusual thermal signatures, and allow operators to assess asset conditions without a site visit.
Monitoring solutions that are built to withstand electromagnetic interference, harsh weather, and remote deployment conditions ensure that utilities can collect accurate data at scale. With integration into SCADA or APM systems, alarms can be triggered automatically, allowing O&M teams to prioritize their responses based on risk and severity. This not only improves safety and reliability but also reduces truck rolls and accelerates decision-making.
Justifying Predictive Maintenance Investment: The Long-Term Value of CBM
For utility leaders making investment decisions, the ability to tie reliability initiatives to long-term cost savings is critical. Condition-Based Maintenance enables that connection by providing defensible data, measurable performance improvement, and financial predictability.
CBM helps justify capital by reducing unnecessary replacements and extending asset life. It decreases O&M overhead through fewer site visits and improved task targeting. And perhaps most importantly, it strengthens the utility's case to regulators, boards, and internal stakeholders with concrete evidence of risk reduction and efficiency gains.
Budgeting for Reliability: Planning Smarter, Spending Smarter
Budgeting for reliability is about aligning investment with need. By grounding decisions in asset conditions, utilities can shift from reactive or schedule-based spending to a more intentional and strategic model. CBM makes it possible to identify where dollars will deliver the most impact, whether in maintenance, refurbishment, or replacement.
This doesn’t just improve operational performance. It supports stronger business cases when justifying budgets to executives or regulators, showing a clear link between spending, risk mitigation, and reliability outcomes. In an environment where every dollar must be accounted for, CBM brings discipline and defensibility to utility spending.
Reliability is not the result of luck, it is the outcome of disciplined, strategic, and data-informed decision-making. While implementing Condition-based maintenance demands new tools, processes, and ways of thinking, the long-term payoff is compelling. Utilities that invest position themselves to extend asset life, control costs, and maintain grid resilience in an increasingly dynamic environment.
Condition-based maintenance is not new. What is new is the urgency with which it must now be adopted. With the right data, planning, and internal alignment, utilities can make this transition not only possible but successful.