An evaluation of the influence caused by the introduction of IPP considering the uncertainty of supply capability

Abstract

Recently, utilities have been able to purchase the electric energy supplied from independent power producers (IPP) owing to deregulation in the electric industry. This paper evaluates the influence of IPP uncertainty on the utility and/or customer. In general, the production cost of energy supplied from IPPs is lower than that of a utility, although the IPP energy has more uncertainty compared with the utilities energy. This paper analyzes the effects caused by IPPs from the following three points: (i) By modeling a process of determining purchased power price as a negotiation model, the authors evaluate the influence of its uncertainty on a potentiality to introduce IPPs through variation of the purchased price. (ii) The authors evaluate the difference of power system reliability between a system under the deregulated environment with IPPs and a conventional system without IPPs. It is assumed that the system reliability is determined by minimizing the sum of supply cost and outage cost. (iii) Finally, the authors evaluate how the customer's various requirements about reliability influence the introduced amount of IPPs. © 2000 Scripta Technica, Electr Eng Jpn, 131(1): 56–67, 2000