Incentive pricing and economic profitability of load management program
This study considers both the internal and external costs of the utility in deriving the avoided capacity cost (ACC) and the avoided operating cost (AOC) induced in the power system in Taiwan (Taipower) caused by the implementation of load management (LM) program. The ACC comprises the avoided generation cost and the avoided network capacity cost. Meanwhile, the AOC is calculated by considering the differences between the total and specific time period energy consumption ratios before and after the implementation of the LM program. This study also develops a financial analysis method using least-cost and benefit-cost models to assess the financial profitability of implementing LM program from a participant's point of view. The design and construction of a partial load-leveling eutectic salt cooling energy storage air conditioning (CES) system in a target office building in Kaohsiung, Taiwan, is discussed in order to simulate the cost-benefit of the CES system from the perspective of the utility and from that of the participant. The results of this case study confirm the effectiveness of the developed models in simulating the economic benefits of implementing LM program from the perspectives of both the utility and the participant.
If 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.
References listed on IDEAS
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.:
- Didden, Marcel H. & D'haeseleer, William D., 2003. "Demand Side Management in a competitive European market: Who should be responsible for its implementation?," Energy Policy, Elsevier, vol. 31(13), pages 1307-1314, October.
- Soloveitchik, David & Ben-Aderet, Nissim & Grinman, Mira & Lotov, Alexander, 2002. "Multiobjective optimization and marginal pollution abatement cost in the electricity sector - An Israeli case study," European Journal of Operational Research, Elsevier, vol. 140(3), pages 571-583, August.
- Hope, Chris & Maul, Philip, 1996. "Valuing the impact of CO2 emissions," Energy Policy, Elsevier, vol. 24(3), pages 211-219, March.
- Spalding-Fecher, Randall & Matibe, David Khorommbi, 2003. "Electricity and externalities in South Africa," Energy Policy, Elsevier, vol. 31(8), pages 721-734, June.
- John T. Wenders, 1976. "Peak Load Pricing in the Electric Utility Industry," Bell Journal of Economics, The RAND Corporation, vol. 7(1), pages 232-241, Spring.
- Eyre, Nick, 1997. "External costs : What do they mean for energy policy?," Energy Policy, Elsevier, vol. 25(1), pages 85-95, January.
- Hobbs, Benjamin F., 1995. "Optimization methods for electric utility resource planning," European Journal of Operational Research, Elsevier, vol. 83(1), pages 1-20, May.
When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:31:y:2006:i:12:p:2193-2209. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
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.