Journal of Electrical Engineering and Technology

The Korean Institute of Electrical Engineers (대한전기학회)
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A Study on Reliability Differentiated Pricing of Long-Term Transactions

  • Kim, Bal-Ho H. (Department of Electrical and Electronic Engeering, Hongik University)
  • Received : 2010.02.05
  • Accepted : 2010.04.05
  • Published : 2011.01.01
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Abstract

Reliability differentiated pricing (RDP) is known to improve the efficiency and benefits of consumers and producers. Outage costs representing the economic and non-economic consequences of service curtailments to customers can be used as an effective parameter of RDP in electricity markets. This paper examines the theoretical aspects of an RDP scheme, and derives the optimal decisions of consumers and electric utilities for long-term transactions. The proposed RDP is demonstrated through a case study on a wheeling service.

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References

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