Shadow pricing of electric power interruptions for distribution system operators in Finland


Type
Article
Change log
Authors
Kufeoglu, Sinan 
Gunduz, Niyazi 
Chen, Hao 
Lehtonen, Matti 
Abstract

Increasing distributed generation and intermittencies, along with the increasing frequency of extreme weather events, impose a serious challenge for the electric power supply security. Understanding the costs of interruption is vital in terms of enhancing the power system infrastructure and planning the distribution grid. On the other hand, customer rights and demand response techniques are further reasons to study the worth of power reliability. In this paper, the authors make use of directional distance function and shadow pricing method for a case study from Finland. The aim is to calculate the cost of one minute of power interruption from the distribution network operator perspective. The sample consists of 78 distribution network operators from Finland with cost and network information between 2013 and 2015.

Description
Keywords
power interruption, distribution system operator, interruption cost, shadow price
Journal Title
Energies
Conference Name
Journal ISSN
1996-1073
1996-1073
Volume Title
11
Publisher
MDPI AG