The costs of electricity interruptions in Spain. Are we sending the right signals?
AbstractOne of the objectives of energy security is the uninterrupted physical availability of energy. However, there is limited information about how much is the cost of energy supply interruptions. This information is essential to optimize investment and operating decisions to prevent energy shortages. In this paper, we estimate the economic impact of an electricity interruption in diferent sectors and regions of Spain. We find that in 2008 the cost for the Spanish economy of one kWh of electricity not supplied was around e6, which is much higher than the signals sent for the operation of the power system. This would mean that we are underinvesting in short-term energy security.
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Bibliographic InfoPaper provided by Economics for Energy in its series Working Papers with number fa05-2012.
Length: 28 pages
Date of creation: Apr 2012
Date of revision:
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Web page: http://www.eforenergy.org
Energy security; electricity interruptions; value of lost load; Spain;
Find related papers by JEL classification:
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-15 (All new papers)
- NEP-ENE-2012-05-15 (Energy Economics)
- NEP-EUR-2012-05-15 (Microeconomic European Issues)
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.:
- 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.
- Karen Fisher-Vanden & Erin T. Mansur & Qiong (Juliana) Wang, 2012. "Costly Blackouts? Measuring Productivity and Environmental Effects of Electricity Shortages," NBER Working Papers 17741, National Bureau of Economic Research, Inc.
- Growitsch, Christian & Jamasb, Tooraj & Müller, Christine & Wissner, Matthias, 2010. "Social cost-efficient service quality--Integrating customer valuation in incentive regulation: Evidence from the case of Norway," Energy Policy, Elsevier, vol. 38(5), pages 2536-2544, May.
- Leahy, Eimear & Tol, Richard S.J., 2011.
"An estimate of the value of lost load for Ireland,"
Elsevier, vol. 39(3), pages 1514-1520, March.
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