Comparative Life Cycle Cost Analysis of Hardening Options for Critical Loads

Sungmin Park, Sung-Yeul Park, Peng Zhang, Peter Luh, Michel T. J. Rakotomavo and Camilo Serna
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Sungmin Park: Department of Electronic & Electrical Engineering, Hongik University, 2639 Sejong-ro, Jochiwon-eup, Sejong 30016, Korea
Sung-Yeul Park: Department of Electrical & Computer Engineering, University of Connecticut, Storrs, CT 06269, USA
Peng Zhang: Department of Electrical & Computer Engineering, University of Connecticut, Storrs, CT 06269, USA
Peter Luh: Department of Electrical & Computer Engineering, University of Connecticut, Storrs, CT 06269, USA
Michel T. J. Rakotomavo: School of Business, University of Connecticut, Storrs, CT 06269, USA
Camilo Serna: Eversource, Berlin, CT 06037, USA

Energies, 2016, vol. 9, issue 7, 1-15

Abstract: In order to determine the most cost effective alternative among hardening options of power systems, the direct monetary benefits should be evaluated above all other things. Therefore, this paper presents a life-cycle cost model which describes total monetary costs experienced in annual time increments during the project with consideration for the time value of money. In addition, to minimize the risks associated with estimated cost errors due to uncertainties of input data, the stochastic input data are considered. Using the Monte Carlo method, the probabilities and cost ranges in the case studies can be predicted, in turn resulting in better decisions in the selection of hardening options which are cost effective.

Keywords: Monte Carlo method; cost benefit analysis; emergency power supplies; microgrids (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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