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Reliability and rationing cost in a power system

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  • N. Vijayaymohanan Pillai

    (Centre for Development Studies)

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    Abstract

    The present paper attempts to analyse the implications of the relationship between reliability and rationing cost involved in a power supply system in the framework of the standard inventory analysis, instead of the conventional marginalist approach of welfare economics. The study is substantiated by fitting a normal distribution to the daily internal maximum demand of the Kerala power system during 1995-96, and also by estimating, based on the techno-economic parameters of different types of power plants, the rationing costs implied in different reliability target criteria.

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    Bibliographic Info

    Paper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 325.

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    Length: 41 pages
    Date of creation: Mar 2002
    Date of revision:
    Handle: RePEc:ind:cdswpp:325

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    Related research

    Keywords: Reliability; rationing cost; maximum demand; normal distribution; power supply;

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    1. Brown, Gardner, Jr & Johnson, M Bruce, 1969. "Public Utility Pricing and Output under Risk," American Economic Review, American Economic Association, vol. 59(1), pages 119-28, March.
    2. Hung-po Chao, 1983. "Peak Load Pricing and Capacity Planning with Demand and Supply Uncertainty," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 179-190, Spring.
    3. Carlton, Dennis W, 1977. "Peak Load Pricing with Stochastic Demand," American Economic Review, American Economic Association, vol. 67(5), pages 1006-10, December.
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    Cited by:
    1. N. Vijayamohanan Pillai, 2004. "CES function, generalised mean and human poverty index: Exploring some links," Centre for Development Studies, Trivendrum Working Papers 360, Centre for Development Studies, Trivendrum, India.

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