Modelling generator maintenance scheduling costs in deregulated power markets

Keshav Dahal, Khalid Al-Arfaj and Krishna Paudyal

European Journal of Operational Research, 2015, vol. 240, issue 2, 551-561

Abstract: Generating companies use the maintenance cost function as the sole or main objective for creating the maintenance schedule of power generators. Usually only maintenance activities related costs are considered to derive the cost function. However, in deregulated markets, maintenance related costs alone do not represent the full costs of generators. This paper models various cost components that affect the maintenance activities in deregulated power markets. The costs that we model include direct and indirect maintenance, failures, interruptions, contractual compensation, rescheduling, and market opportunity. The loss of firm’s reputation and selection of loyalty model are also considered using the Analytic Hierarchy Process (AHP) within an opportunity cost model. A case study is used to illustrate the modelling activities. The enhanced model is utilised in generator maintenance scheduling cases. The experimental results demonstrate the importance and impact of market related costs in maintenance schedules.

Keywords: Maintenance; Opportunity cost; Deregulated market; Reputation; AHP (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:240:y:2015:i:2:p:551-561

DOI: 10.1016/j.ejor.2014.07.008

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