Power Outage Cost Evaluation: Reasoning, Methods and an Application
Johannes Reichl *
Energy Institute at the Johannes Kepler University Linz, Altenberger Straße 69, A-4040Linz, Austria.
Michael Schmidthaler
Energy Institute at the Johannes Kepler University Linz, Altenberger Straße 69, A-4040Linz, Austria.
Friedrich Schneider
Institute of Economics, Johannes Kepler Universität Linz, Altenberger Straße 69, A-4040, Austria.
*Author to whom correspondence should be addressed.
Abstract
This paper analyses different assessment techniques used for power outage costs evaluation. Socio-economic analyses to quantify the effects of power cuts are essential for energy policy and to provide a rationale for investments in electricity supply security enhancing measures.
Different analytical approaches are presented. An application of these assessment options provides insights in the macroeconomic value of electricity supply security. This is an essential input in the current discussion of grid extensions and investments in renewable energy sources.
The applied analysis tool for the simulation of different power outage scenarios is available for download and enables policy makers to base decisions on the ground of the economic dimension of electricity supply security.
Keywords: Energy policy, electricity supply security, power outage costs