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Integration of electricity from renewable energy sources is currently a big issue that affects all areas of the power industry (generation – transmission – distribution –consumption) and it relates to all highly developed as well as developing power industry systems. There has recently been a significant increase of installed capacity of renewable energy sources, especially of photovoltaic power plants in the Czech Republic. High levels of electricity generation from renewable energy sources occur during favorable weather conditions in the Central Europe region. This causes loop flows and overloading of transmission systems in the whole region. Huge development of renewable energy sources in the region considerably affects both the distribution system and the transmission system of the Czech Republic. Operation of the Czech power system is negatively influenced and project development of the power system needs to be repeatedly modified and updated. Steeply raising development of subsidized renewable energy sources in Europe and in the Czech Republic brings about many challenges and risks, technical as well as economic and social.

The paper presents the results of the analysis of the estimate of the cost of penalty payments for breaching the guaranteed standard of the electricity supply continuity. A real municipal MV cable distribution network was analysed. The estimate of the cost of penalty payments was obtained by simulating supply interruptions in the network by using a modified Monte Carlo method. The analysis is performed for various types of the guaranteed standard. Both the limit of the annual number of supply interruptions for a consumer and the limit of the total annual duration of supply interruptions are considered. The costs of penalty payments for the annual evaluation and the evaluation based on two-year mean values are compared. The results obtained reveal that, for the given network, the cost of penalty payments can represent an amount of money that cannot be neglected. Some conclusions are therefore given at the end of the paper which may be used by the managing staff of the distribution company when optimizing the distribution network just with the aim of reducing the cost of penalty payments.

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