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Full value costs for sustainable electric utility options

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  • Warren W. Schenler

Abstract

Seeking new energy options in the electric utility sector leads to the question of how sustainable options can be chosen in an environment of increasing market competition. Under such competition, utility planning must become more distributed, through the mechanism of market price signals. Monetary values based on how new options interact with the existing system exist, but have not been generally recognised or evenly applied in current planning or for deregulated planning. This article describes a framework for comprehensively identifying utility options and values. It shows how component values can be analysed independent of option technologies by using the relevant subset of option and system characteristics. Sensitivity analysis of these characteristics allows construction of component value supply curves. The methodology is illustrated by calculating the value of spinning reserve in the New England region using a production costing model.

Suggested Citation

  • Warren W. Schenler, 1999. "Full value costs for sustainable electric utility options," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 12(1/2/3/4/5), pages 208-217.
    • Handle: RePEc:ids:ijgeni:v:12:y:1999:i:1/2/3/4/5/6:p:208-217
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