Economic Benefits of Co-operative Power Supply Expansion
This paper measures the potential supply cost reduction from a high degree of integration between two neighbouring electric utilities in Canada, using an optimization approach based on mixed integer linear programming. Over the decade examined, generation costs economies of joint supply stand at several tens of millions of dollars, ranging from seven to ten percent of the combined costs of self-sufficiency for each utility. The results exhibit little sensitivity to the assumed demand or the discount rate.
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