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An economic model for the cost of electricity service interruption in South Africa

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  • Minnaar, U.J.
  • Visser, W.
  • Crafford, J.

Abstract

Cost of unserved energy provides an economic measure of the cost of electricity interruptions to electricity customers. These values inform investment and refurbishment decisions related to the power system, with the aim of optimizing network reliability. This paper reports on the development of an economic model to estimate the value of electricity reliability in South Africa by Eskom to meet regulatory requirements. The model allows for the scalability of COUE from national level to more detailed resolutions. The impact is that decisions for power system investment can be made to meet the needs of planning and regulatory applications.

Suggested Citation

  • Minnaar, U.J. & Visser, W. & Crafford, J., 2017. "An economic model for the cost of electricity service interruption in South Africa," Utilities Policy, Elsevier, vol. 48(C), pages 41-50.
    • Handle: RePEc:eee:juipol:v:48:y:2017:i:c:p:41-50
    DOI: 10.1016/j.jup.2017.08.010
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    References listed on IDEAS

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    1. Carlsson, Fredrik & Martinsson, Peter, 2008. "Does it matter when a power outage occurs? -- A choice experiment study on the willingness to pay to avoid power outages," Energy Economics, Elsevier, vol. 30(3), pages 1232-1245, May.
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    Cited by:

    1. Rilwan Usman & Pegah Mirzania & Sahban W. Alnaser & Phil Hart & Chao Long, 2022. "Systematic Review of Demand-Side Management Strategies in Power Systems of Developed and Developing Countries," Energies, MDPI, vol. 15(21), pages 1-24, October.
    2. Ateba, Benedict Belobo & Jurgens Prinsloo, Johannes, 2019. "Strategic management for electricity supply sustainability in South Africa," Utilities Policy, Elsevier, vol. 56(C), pages 92-103.
    3. Gunduz, N & Kufeoglu, S. & Winzer, C. & Lehtonen, M., 2018. "Regional Differences in Economic Impacts of Power Outages in Finland," Cambridge Working Papers in Economics 1841, Faculty of Economics, University of Cambridge.
    4. Alexandros Korkovelos & Dimitrios Mentis & Morgan Bazilian & Mark Howells & Anwar Saraj & Sulaiman Fayez Hotaki & Fanny Missfeldt-Ringius, 2020. "Supporting Electrification Policy in Fragile States: A Conflict-Adjusted Geospatial Least Cost Approach for Afghanistan," Sustainability, MDPI, vol. 12(3), pages 1-34, January.
    5. Sinan Küfeoğlu & Niyazi Gündüz & Hao Chen & Matti Lehtonen, 2018. "Shadow Pricing of Electric Power Interruptions for Distribution System Operators in Finland," Energies, MDPI, vol. 11(7), pages 1-14, July.

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