Electricity transmission reliability: the impact of reliability criteria

Marten Ovaere and Stef Proost

No 551144, Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: In the presence of transmission outages, uncertain demand and variable renewable supply, network operators keep a reliability margin to avoid interruptions and black-outs. The reliability margin is presently determined by the N-1 reliability criterion. Our analytical model defines the optimal reliability margin by balancing congestion costs and interruption costs. This leads to new operational reliability margins and new transmission investment rules that are superior to the N-1 criterion. A numerical illustration shows under what conditions the new rules dominate the N-1 criterion.

Date: 2016-09
New Economics Papers: this item is included in nep-ene
Note: paper number DPS 16.21
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Citations: View citations in EconPapers (1)

Published in Department of Economics. Discussion paper series,, pages 1-18

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Persistent link: https://EconPapers.repec.org/RePEc:ete:ceswps:551144

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