Pub Date : 2024-04-17DOI: 10.1016/j.jup.2024.101753
Shunran Ye , Yichao Meng , Shuhai Feng , Shuo Liu , Xinhua Zhang
Inter-provincial barriers hinder the optimization process of power resource allocation, resulting in a coexistence of idle low-cost power plants and high-cost power plants within the region. This paper investigates the size measurement and elimination of interprovincial barriers. It also proposes a specific program for regional unified electricity market clearing and eliminating inter-provincial barriers. The results indicate that this mechanism enables power supply substitution without causing harm to market players and overcomes inter-provincial barriers to optimal resource allocation. It promotes the rational allocation of power resources and reduces power supply costs within the region.
{"title":"A mechanism to overcome barriers to inter-provincial power supply substitution in China","authors":"Shunran Ye , Yichao Meng , Shuhai Feng , Shuo Liu , Xinhua Zhang","doi":"10.1016/j.jup.2024.101753","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101753","url":null,"abstract":"<div><p>Inter-provincial barriers hinder the optimization process of power resource allocation, resulting in a coexistence of idle low-cost power plants and high-cost power plants within the region. This paper investigates the size measurement and elimination of interprovincial barriers. It also proposes a specific program for regional unified electricity market clearing and eliminating inter-provincial barriers. The results indicate that this mechanism enables power supply substitution without causing harm to market players and overcomes inter-provincial barriers to optimal resource allocation. It promotes the rational allocation of power resources and reduces power supply costs within the region.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101753"},"PeriodicalIF":4.0,"publicationDate":"2024-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724000468/pdfft?md5=6b28ab941aa2180171b265784cf19cb8&pid=1-s2.0-S0957178724000468-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140606697","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-17DOI: 10.1016/j.jup.2024.101756
Ramón Núñez-Sánchez , Marco Otoya-Chavarría , Alexandra Soberón
Using household data, we estimate the price and budget elasticities of utility services (electricity, natural gas, and water) during the Great Recession in Spain. A nearly ideal quadratic demand system is estimated by controlling censorship and endogeneity problems, where households are split into two groups depending on their vulnerability. We observe differences in the consumption preferences depending on their vulnerability condition, but the relationship between vulnerability and demand sensitivity for utility services is unclear. Then, energy poverty policies such as the social discount rate for electricity would not be justified in terms of economic efficiency but rather for other reasons.
{"title":"Price and budget elasticities under utility poverty policies in Spain","authors":"Ramón Núñez-Sánchez , Marco Otoya-Chavarría , Alexandra Soberón","doi":"10.1016/j.jup.2024.101756","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101756","url":null,"abstract":"<div><p>Using household data, we estimate the price and budget elasticities of utility services (electricity, natural gas, and water) during the Great Recession in Spain. A nearly ideal quadratic demand system is estimated by controlling censorship and endogeneity problems, where households are split into two groups depending on their vulnerability. We observe differences in the consumption preferences depending on their vulnerability condition, but the relationship between vulnerability and demand sensitivity for utility services is unclear. Then, energy poverty policies such as the social discount rate for electricity would not be justified in terms of economic efficiency but rather for other reasons.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101756"},"PeriodicalIF":4.0,"publicationDate":"2024-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140558186","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-15DOI: 10.1016/j.jup.2024.101751
Alexandre Schwinden Garcia , Frederick Fagundes Alves , João Marcello Pimentel Filgueiras
We evaluated the effectiveness of the tariff flags system (TFS) on electricity consumption in Brazil. Tariff flags represent a demand-side management (DSM) mechanism used in the Brazilian electricity sector and act as a signal sent to agents about electricity production costs. The effectiveness of the flags in reducing electricity consumption is assessed using monthly consumption data from 26 Brazilian states between 2015 and 2022, and panel data models with fixed effects were estimated. The results indicate that only the water scarcity flag effectively reduced electricity consumption by 2.89%. When the Yellow, Red I, and Red II flags were in operation, there was a median increase in electricity consumption of 0.61%, 4.24%, and 1.47%, respectively. In addition, the other variables indicate that the higher the temperature and income of the States, the higher the consumption, and the higher the electricity tariff, the lower the consumption. We also observed persistence in the consumption of electricity in the States, possibly related to consumer habits.
我们评估了巴西电价旗制度(TFS)对电力消费的影响。电价旗是巴西电力部门采用的一种需求侧管理(DSM)机制,是向代理人发送的有关电力生产成本的信号。利用 2015 年至 2022 年巴西 26 个州的月度用电数据评估了电价旗在降低用电量方面的效果,并估算了具有固定效应的面板数据模型。结果表明,只有缺水旗帜能有效降低 2.89% 的用电量。当黄旗、红旗 I 和红旗 II 启用时,用电量增加的中位数分别为 0.61%、4.24% 和 1.47%。此外,其他变量表明,气温越高、收入越高的国家用电量越大,而电费越高的国家用电量越小。我们还观察到各国用电量的持续性,这可能与消费者的习惯有关。
{"title":"Tariff flags and electricity consumption response in Brazil","authors":"Alexandre Schwinden Garcia , Frederick Fagundes Alves , João Marcello Pimentel Filgueiras","doi":"10.1016/j.jup.2024.101751","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101751","url":null,"abstract":"<div><p>We evaluated the effectiveness of the tariff flags system (TFS) on electricity consumption in Brazil. Tariff flags represent a demand-side management (DSM) mechanism used in the Brazilian electricity sector and act as a signal sent to agents about electricity production costs. The effectiveness of the flags in reducing electricity consumption is assessed using monthly consumption data from 26 Brazilian states between 2015 and 2022, and panel data models with fixed effects were estimated. The results indicate that only the water scarcity flag effectively reduced electricity consumption by 2.89%. When the Yellow, Red I, and Red II flags were in operation, there was a median increase in electricity consumption of 0.61%, 4.24%, and 1.47%, respectively. In addition, the other variables indicate that the higher the temperature and income of the States, the higher the consumption, and the higher the electricity tariff, the lower the consumption. We also observed persistence in the consumption of electricity in the States, possibly related to consumer habits.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101751"},"PeriodicalIF":4.0,"publicationDate":"2024-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140552361","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The impact of organizational characteristics of waste collection services on efficiency was analyzed. The characteristics under scrutiny included the contractual status of personnel, the age and type of waste collection vehicles employed, and the management modality of the system.
A dataset encompassing 1783 municipal waste collection systems in Mexico was analyzed utilizing double bootstrap data envelopment analysis. Findings suggest that the contractual status of personnel significantly influences efficiency, with systems characterized by greater employment flexibility having higher efficiency levels. Furthermore, the characteristics of the vehicles employed impact efficiency, with the utilization of compactor and newer vehicles displaying a positive correlation with efficiency. Additionally, the managerial modality emerged as a determinant factor in waste collection performance, with privately managed systems exhibiting superior efficiency compared to fully public systems or public-private partnerships. Conversely, waste collection systems operated by non-governmental organizations exhibited comparatively lower levels of efficiency.
{"title":"Organization, capital, and human resource factors influencing waste collection efficiency in Mexico","authors":"Alejandro Salazar-Adams , Cecilia Ramirez-Figueroa","doi":"10.1016/j.jup.2024.101747","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101747","url":null,"abstract":"<div><p>The impact of organizational characteristics of waste collection services on efficiency was analyzed. The characteristics under scrutiny included the contractual status of personnel, the age and type of waste collection vehicles employed, and the management modality of the system.</p><p>A dataset encompassing 1783 municipal waste collection systems in Mexico was analyzed utilizing double bootstrap data envelopment analysis. Findings suggest that the contractual status of personnel significantly influences efficiency, with systems characterized by greater employment flexibility having higher efficiency levels. Furthermore, the characteristics of the vehicles employed impact efficiency, with the utilization of compactor and newer vehicles displaying a positive correlation with efficiency. Additionally, the managerial modality emerged as a determinant factor in waste collection performance, with privately managed systems exhibiting superior efficiency compared to fully public systems or public-private partnerships. Conversely, waste collection systems operated by non-governmental organizations exhibited comparatively lower levels of efficiency.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101747"},"PeriodicalIF":4.0,"publicationDate":"2024-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140545795","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-04-06DOI: 10.1016/j.jup.2024.101734
Lin-Lan Bu , Maria Kopsakangas-Savolainen , Bai-Chen Xie , Hong-Zhou Li , Yi-Meng Liu , Shao-Peng Yin
This research evaluates the effects of performance benchmarking for public utilities using the Australian experience, providing empirical support for the significance of mechanism design in implementing revenue-cap regulation. We estimate the efficiency and productivity of Australian electricity distribution providers by utilizing the meta-frontier framework with panel data covering the period from 2007 to 2021. Our findings indicate that introducing benchmarking has facilitated technological progress and reduced efficiency gaps among companies. However, there is no statistically significant difference in the average efficiency between the periods before and after the reform, potentially due to strategic behavior exhibited by network service providers.
{"title":"Has benchmarking improved the performance of the Australian electricity distribution utilities? A meta-frontier model","authors":"Lin-Lan Bu , Maria Kopsakangas-Savolainen , Bai-Chen Xie , Hong-Zhou Li , Yi-Meng Liu , Shao-Peng Yin","doi":"10.1016/j.jup.2024.101734","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101734","url":null,"abstract":"<div><p>This research evaluates the effects of performance benchmarking for public utilities using the Australian experience, providing empirical support for the significance of mechanism design in implementing revenue-cap regulation. We estimate the efficiency and productivity of Australian electricity distribution providers by utilizing the meta-frontier framework with panel data covering the period from 2007 to 2021. Our findings indicate that introducing benchmarking has facilitated technological progress and reduced efficiency gaps among companies. However, there is no statistically significant difference in the average efficiency between the periods before and after the reform, potentially due to strategic behavior exhibited by network service providers.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101734"},"PeriodicalIF":4.0,"publicationDate":"2024-04-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140533382","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-30DOI: 10.1016/j.jup.2024.101748
Masoumeh Amirifard , Ronald A. Sinton , Sarah Kurtz
Forward-looking strategies for Demand Side Management (DSM) can accelerate the clean energy transition and reduce carbon emissions if electricity load can be shaped to be better matched to the hourly availability of renewable resources. Time-varying rates are increasingly used to motivate load shifting, capitalizing on the increasing size of loads that can be easily shifted, such as electric vehicle charging and electric heat pumps. This study analyzes the hourly availability of current and renewable resources for two representative electricity grids in the USA. While many demand-management programs are currently designed to shift load to nighttime when demand is low, to use low-cost PV the opposite shift into daytime will be preferred. Given that investments in electricity generation capacity shape the grid for decades, generation capacity planning should proactively anticipate how DSM programs (and associated load shapes) will change as the generation mix changes. These future load shapes determine the optimal resources to be acquired and can be modified by DSM to facilitate variable renewable integration. Ongoing regulatory proceedings in Colorado are described as a case study for an existing decision-making process.
{"title":"How demand-side management can shape electricity generation capacity planning","authors":"Masoumeh Amirifard , Ronald A. Sinton , Sarah Kurtz","doi":"10.1016/j.jup.2024.101748","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101748","url":null,"abstract":"<div><p>Forward-looking strategies for Demand Side Management (DSM) can accelerate the clean energy transition and reduce carbon emissions if electricity load can be shaped to be better matched to the hourly availability of renewable resources. Time-varying rates are increasingly used to motivate load shifting, capitalizing on the increasing size of loads that can be easily shifted, such as electric vehicle charging and electric heat pumps. This study analyzes the hourly availability of current and renewable resources for two representative electricity grids in the USA. While many demand-management programs are currently designed to shift load to nighttime when demand is low, to use low-cost PV the opposite shift into daytime will be preferred. Given that investments in electricity generation capacity shape the grid for decades, generation capacity planning should proactively anticipate how DSM programs (and associated load shapes) will change as the generation mix changes. These future load shapes determine the optimal resources to be acquired and can be modified by DSM to facilitate variable renewable integration. Ongoing regulatory proceedings in Colorado are described as a case study for an existing decision-making process.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101748"},"PeriodicalIF":4.0,"publicationDate":"2024-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724000419/pdfft?md5=a2f976acda3fbe61b4ace561e2fbae36&pid=1-s2.0-S0957178724000419-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140330785","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A recent regulatory framework reform implemented in Brazil aims to universalize water and sanitation services by 2033. For financing and speeding up the construction of infrastructure, the new law encourages private sector participation through auctions promoted with the support of the Brazilian National Development Bank. However, the first auctions, with billions of dollars in price and investment effects, have raised concerns among practitioners over the impact on vulnerable families. We analyze the concessions in Alagoas and Rio de Janeiro states in Brazil to demonstrate how low-income families will struggle to pay their bills based on auction prices via the tariff, which may invite discontent. This research can inform subsequent water and sanitation auctions by highlighting that awards should not be based exclusively on auction prices, and affordability assessments should be mandatory.
{"title":"Are Brazilian water auction prices affordable for vulnerable families?","authors":"Thalita Salgado Fagundes , Rui Cunha Marques , Tadeu Fabrício Malheiros","doi":"10.1016/j.jup.2024.101749","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101749","url":null,"abstract":"<div><p>A recent regulatory framework reform implemented in Brazil aims to universalize water and sanitation services by 2033. For financing and speeding up the construction of infrastructure, the new law encourages private sector participation through auctions promoted with the support of the Brazilian National Development Bank. However, the first auctions, with billions of dollars in price and investment effects, have raised concerns among practitioners over the impact on vulnerable families. We analyze the concessions in Alagoas and Rio de Janeiro states in Brazil to demonstrate how low-income families will struggle to pay their bills based on auction prices via the tariff, which may invite discontent. This research can inform subsequent water and sanitation auctions by highlighting that awards should not be based exclusively on auction prices, and affordability assessments should be mandatory.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101749"},"PeriodicalIF":4.0,"publicationDate":"2024-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724000420/pdfft?md5=7b68ed96a319be6c3846ee1d2ce31f4c&pid=1-s2.0-S0957178724000420-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140330786","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-29DOI: 10.1016/j.jup.2024.101736
Seyyedreza Madani, Pierre-Olivier Pineau
Photovoltaic panels, electric vehicles, and vehicle-to-grid technologies are becoming more common and hold significant promises to improve the grid and foster the energy transition. However, significant questions remain unanswered with respect to who should invest in this equipment and what tariff should be used. This paper examines whether the distribution company or prosumer should invest in and manage Distributed Energy Resources (DER), the ideal combination of DER to utilize, and the appropriate tariff to implement. Central to this analysis is the assessment of different stakeholder objectives, particularly from the investor's perspective, where net present value is used as the primary criterion for evaluating the different investment scenarios. Additionally, the impact of these scenarios on the annual system cost is calculated. A mathematical scenario analysis model is developed to simulate the operation of DER and energy management systems. This model utilizes the Vermont electricity grid's real-world consumption, generation data, and cost structures. The results underscore the significance of incorporating vehicle-to-grid technology to enhance the profitability of DER investments. This inclusion of specific data sources and stakeholder criteria aims to provide insight into the complex dynamics of smart-home deployment.
光伏电池板、电动汽车和车联网技术正变得越来越普遍,在改善电网和促进能源转型方面大有可为。然而,关于由谁来投资这些设备以及应采用何种电价等重大问题仍未得到解答。本文探讨了配电公司或用户是否应投资和管理分布式能源资源 (DER)、使用 DER 的理想组合以及实施的适当电价。该分析的核心是评估不同利益相关者的目标,尤其是从投资者的角度出发,将净现值作为评估不同投资方案的主要标准。此外,还计算了这些方案对年度系统成本的影响。我们开发了一个数学情景分析模型来模拟 DER 和能源管理系统的运行。该模型利用了佛蒙特州电网的实际消费、发电数据和成本结构。结果强调了采用车联网技术提高 DER 投资收益的重要性。将特定数据源和利益相关者标准纳入其中,旨在深入了解智能家居部署的复杂动态。
{"title":"Investment in vehicle-to-grid and distributed energy resources: Distributor versus prosumer perspectives and the impact of rate structures","authors":"Seyyedreza Madani, Pierre-Olivier Pineau","doi":"10.1016/j.jup.2024.101736","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101736","url":null,"abstract":"<div><p>Photovoltaic panels, electric vehicles, and vehicle-to-grid technologies are becoming more common and hold significant promises to improve the grid and foster the energy transition. However, significant questions remain unanswered with respect to who should invest in this equipment and what tariff should be used. This paper examines whether the distribution company or prosumer should invest in and manage Distributed Energy Resources (DER), the ideal combination of DER to utilize, and the appropriate tariff to implement. Central to this analysis is the assessment of different stakeholder objectives, particularly from the investor's perspective, where net present value is used as the primary criterion for evaluating the different investment scenarios. Additionally, the impact of these scenarios on the annual system cost is calculated. A mathematical scenario analysis model is developed to simulate the operation of DER and energy management systems. This model utilizes the Vermont electricity grid's real-world consumption, generation data, and cost structures. The results underscore the significance of incorporating vehicle-to-grid technology to enhance the profitability of DER investments. This inclusion of specific data sources and stakeholder criteria aims to provide insight into the complex dynamics of smart-home deployment.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101736"},"PeriodicalIF":4.0,"publicationDate":"2024-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724000298/pdfft?md5=d1f0f1f8bd4cd8685139b353a72aacd6&pid=1-s2.0-S0957178724000298-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140321164","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-27DOI: 10.1016/j.jup.2024.101746
Fahad Bin Abdullah , Muhammad Arsalan Aqeeq , Rizwan Iqbal , Maria Abdullah , Falak Shad Memon
Pakistan's power distribution utilities (DISCOs) face significant challenges, including outdated infrastructure, theft, and financial constraints, leading to inefficiencies and higher costs. A new framework proposes a strategy for operational enhancement and sector reforms, focusing on modernizing management, increasing capacity, improving network reliability, and implementing advanced metering and automated solutions. It aims to bolster transactional accuracy, safety, and inventory management, recalibrate subsidies, and ensure rigorous IT oversight for loss reduction and maintenance optimization. The framework promotes sustained investment and professional development, striving for financial stability and accountability while empowering DISCOs with the autonomy to maintain efficiency and engage consumers more effectively.
{"title":"Enhancing electricity distribution efficiency in Pakistan: A framework for progress and action","authors":"Fahad Bin Abdullah , Muhammad Arsalan Aqeeq , Rizwan Iqbal , Maria Abdullah , Falak Shad Memon","doi":"10.1016/j.jup.2024.101746","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101746","url":null,"abstract":"<div><p>Pakistan's power distribution utilities (DISCOs) face significant challenges, including outdated infrastructure, theft, and financial constraints, leading to inefficiencies and higher costs. A new framework proposes a strategy for operational enhancement and sector reforms, focusing on modernizing management, increasing capacity, improving network reliability, and implementing advanced metering and automated solutions. It aims to bolster transactional accuracy, safety, and inventory management, recalibrate subsidies, and ensure rigorous IT oversight for loss reduction and maintenance optimization. The framework promotes sustained investment and professional development, striving for financial stability and accountability while empowering DISCOs with the autonomy to maintain efficiency and engage consumers more effectively.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101746"},"PeriodicalIF":4.0,"publicationDate":"2024-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140309387","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-20DOI: 10.1016/j.jup.2024.101733
Taeyoung Jin , Tae Eui Lee , Dowon Kim
This study quantifies the value of lost load (VoLL) for the manufacturing sector in South Korea using stated preference methods. VoLL represents the cost of a stable electricity supply, which serves as a public good without a market price to compensate for flexible resources in the electricity market. The contingent valuation and choice experiment showed VoLL ranges from 0.35 to 0.80 USD per kWh unserved, below the industrial VoLL estimates in the existing literature. This finding suggests that outages may have lower costs for electricity consumers than investing in flexible resources. Using the correct estimate of outage costs is required to ensure capacity adequacy.
{"title":"Valuing flexible resources in the Korean electricity market based on stated preference methods","authors":"Taeyoung Jin , Tae Eui Lee , Dowon Kim","doi":"10.1016/j.jup.2024.101733","DOIUrl":"https://doi.org/10.1016/j.jup.2024.101733","url":null,"abstract":"<div><p>This study quantifies the value of lost load (VoLL) for the manufacturing sector in South Korea using stated preference methods. VoLL represents the cost of a stable electricity supply, which serves as a public good without a market price to compensate for flexible resources in the electricity market. The contingent valuation and choice experiment showed VoLL ranges from 0.35 to 0.80 USD per kWh unserved, below the industrial VoLL estimates in the existing literature. This finding suggests that outages may have lower costs for electricity consumers than investing in flexible resources. Using the correct estimate of outage costs is required to ensure capacity adequacy.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"88 ","pages":"Article 101733"},"PeriodicalIF":4.0,"publicationDate":"2024-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140180204","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}