The Economic Aspect of Missing Capacity in Resource Adequacy Assessment Studies

• Published in: 2023 IEEE 2nd Industrial Electronics Society Annual On-Line Conference (ONCON) pp. 1 - 6
• Main Authors: Dratsas, Pantelis A., Psarros, Georgios N., Papathanassiou, Stavros A.
• Format: Conference Proceeding
• Language: English
• Published: IEEE 08-12-2023
• Subjects: cost of new entry; Costs; Generators; Industrial electronics; LOLE; Missing capacity; Power system reliability; Reliability; reliability standard; resource adequacy; system operation cost; value of loss of load
• DOI: 10.1109/ONCON60463.2023.10430974

In this paper, the missing capacity problem of a non-interconnected power system is showcased, and alternative solutions are investigated to address it in the most economic manner. Determining the required capacity to achieve a specific reliability standard is crucial, and it involves calculating the impact of the newly introduced capacity to fix the inadequacies on the overall system costs. With various solutions available to achieve acceptable resource adequacy levels, the primary objective should be the selection of a pathway that strikes a balance between improving adequacy levels and optimizing net system benefits. To this end, the analysis aims to identify the most effective development pathway that increases adequacy levels while maximizing net system benefits. A detailed resource adequacy assessment (RAA) model is developed to define the adequacy level of the system, incorporating a merit order algorithm to assess the system's economic performance. Then, thermal units of different techno-economic characteristics are tested to meet the capacity deficit. The improvement in system reliability, the additional annual cost associated with the introduction of new thermal capacity, and the variations in the variable system costs are co-assessed to eventually conclude on an adequacy level that minimizes system total costs.