Optimal electric power conservation investments using utility avoided-costs

Jože Renar and Miha Tomšič

Energy, 1992, vol. 17, issue 5, 499-508

Abstract: The evaluation of economic effects of power-conservation measures due to electric utility avoided-costs in Slovenia is described. A procedure for estimating the long-term marginal costs of public utilities is developed. We evaluate the economic effects of deferrals of different planned generating units (thermal and hydroelectric power plants) considering optimal operation of the system in a planned period. The effects of stochastic behaviour of hydroelectric power in the system are also taken into consideration. The result is a relatively simple approximate method of utility avoided-costs evaluation for different load-shape power-conservation measures (including self-production). Maximal acceptable investment costs for two different power-conservation measures (considering three different discount rates) were calculated.

Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:17:y:1992:i:5:p:499-508

DOI: 10.1016/0360-5442(92)90086-F

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