Economic criteria for optimizing power system reliability levels

Journal Article · · Bell J. Econ.; (United States)

DOI:https://doi.org/10.2307/3003337· OSTI ID:6263902

Munasinghe, M; Gellerson, M

The standards of reliability of electricity supply have previously been determined on a rule-of-thumb basis. A generalized simulation model is presented for optimizing the reliability level by comparing the social benefits and costs of changes in power-system reliability. The supply-side costs of increasing system reliability can be determined from straightforward engineering considerations. On the demand side, the benefits to electricity users consist of cost savings from averted power failures or outages; these may be measured by the disruption of the output streams owing to idle input factors and spoilage. The theory is applied to the case study of Cascavel, Brazil to determine a range of optimum reliability levels for long-range electric power distribution-system planning. The principal outage costs are incurred by industrial and residential consumers. 22 references.

• OSTI ID: 6263902
• Journal Information: Bell J. Econ.; (United States), Journal Name: Bell J. Econ.; (United States) Vol. 10:1; ISSN BJECD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC UTILITIES
ENERGY LOSSES
LOSSES
OPTIMIZATION
OUTAGES
POWER LOSSES
POWER SYSTEMS
PUBLIC UTILITIES
RELIABILITY
SUPPLY AND DEMAND