Optimal blackouts: Empirical results on reducing the social cost of electricity outages through efficient regional rationing
AbstractThe demand and supply of electricity must always balance. If supply falls short of demand, then price increases or voluntary demand reductions might help to maintain the balance in the system. Should these prove insufficient, then rationing is necessary. Rationing means interrupting the electricity delivery to certain areas or specific electricity users in order to preserve system stability. Since the cost of an interruption differs among electricity users, the social cost of different rationing mechanisms varies. This paper explores the cost difference between efficient regional rationing (minimizing social costs by rationing regions with low costs first) and random rationing (not taking into account social costs). For this the value of lost load calculations of De Nooij et al. [De Nooij, M., Bijvoet, C.C., Koopmans, C.C., (2007). The value of supply security: The costs of power interruptions: Economic input for damage reduction and investment in networks. Energy Economics, 29 (2), 277-295.] are refined. For the Netherlands, it is shown that efficient rationing can reduce social costs by 42 to 93%.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 31 (2009)
Issue (Month): 3 (May)
Contact details of provider:
Web page: http://www.elsevier.com/locate/eneco
Electricity supply security Value of lost load (VOLL) Electricity outages Power supply Social costs;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Crew, Michael A & Fernando, Chitru S & Kleindorfer, Paul R, 1995. "The Theory of Peak-Load Pricing: A Survey," Journal of Regulatory Economics, Springer, vol. 8(3), pages 215-48, November.
- de Nooij, Michiel & Koopmans, Carl & Bijvoet, Carlijn, 2007. "The value of supply security: The costs of power interruptions: Economic input for damage reduction and investment in networks," Energy Economics, Elsevier, vol. 29(2), pages 277-295, March.
- Tishler, Asher, 1993. "Optimal production with uncertain interruptions in the supply of electricity : Estimation of electricity outage costs," European Economic Review, Elsevier, vol. 37(6), pages 1259-1274, August.
- Sanghvi, Arun P., 1982. "Economic costs of electricity supply interruptions : US and foreign experience," Energy Economics, Elsevier, vol. 4(3), pages 180-198, July.
- growitsch, christian & Malischek, Raimund & Nick, Sebastian & Wetzel, Heike, 2013. "The Costs of Power Interruptions in Germany - an Assessment in the Light of the Energiewende," EWI Working Papers 2013-7, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
- Lachman, Daniël A., 2011. "Leapfrog to the future: Energy scenarios and strategies for Suriname to 2050," Energy Policy, Elsevier, vol. 39(9), pages 5035-5044, September.
- Piaszeck, Simon & Wenzel, Lars & Wolf, André, 2013. "Regional diversity in the costs of electricity outages: Results for German counties," HWWI Research Papers 142, Hamburg Institute of International Economics (HWWI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.