Large-scale investment in transmission and distribution networks are planned over the next 10-15 years to meet future demand and changes in power generation. However, it is important that existing assets continue to operate reliably and their health maintained. A research project is considering the increased use of simulation models that could provide accurate prognostics, targeting maintenance and reduce in service failures. Such models could be further refined with parameters obtained from on-line measurements at the asset. It is also important to consider the future development of the research agenda for condition monitoring of power networks and with colleagues from National Grid, PPA Energy and the Universities of Manchester and Strathclyde, the research team are preparing a Position Paper on this subject.