Increasing distributed generation and intermittency, along with the increasing frequency of extreme weather events, impose a serious challenge for the electric power supply security. Understanding the costs of interruption is vital in terms of enhancing the power system infrastructure and planning the distribution grid. On the other hand, customer rights and demand response techniques are further reasons to study the worth of power reliability. In this paper, the authors make use of directional distance function and shadow pricing method for a case study from Finland. The aim is to calculate the cost of one minute of power interruption from the distribution network operator perspective. The sample consists of 78 distribution network operators from Finland with cost and network information between 2013 and 2015.

Abstract:The future of climate and sustainable energy are interrelated. Speaking of one without mentioning the other is quite difficult. The increasing number of natural disasters pose a great threat to the electric power supply security in any part of the world. Sweden has been one of the countries that have suffered from unacceptably long blackouts. The tremendous outcomes of the power interruptions have made the field of the economic worth of electric power reliability a popular area of interest among researchers. Nature has been the number one enemy against the supply security of the electricity. This paper introduces a recent and thorough electric power reliability analysis of Sweden and focuses on the country's struggle against climate change-related natural disasters via updating the country's electric power policy to improve its service quality. The paper highlights the Gudrun storm of 2005 as a case study to demonstrate the severe impacts of extreme weather events on the energy systems. The economic damage of the storm on the electric power service calculated to be around 3 billion euros.

Abstract:Increasing distributed generation and intermittencies, along with the increasing frequency of extreme weather events, impose a serious challenge for electric power supply security. Understanding the costs of interruption is vital in terms of enhancing the power system infrastructure and planning the distribution grid. Furthermore, customer rights and demand response techniques are further reasons to study the worth of power reliability. In this paper, the authors make use of directional distance function and shadow pricing methods in a case study of Finland. The aim is to calculate the cost of one minute of power interruption from the perspective of the distribution network operator. The sample consists of 78 distribution network operators from Finland, and uses cost and network information between 2013 and 2015.

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