Power supply reliability vs profitability in rural distribution networks

Abstract

More often the occurrence of severe winter and summer storms in Northern Europe accompanied by large scale outages in rural networks pushes distribution utilities to find reliable, cost effective, and yet profitable network designs in rural areas that would satisfy customer needs at the lowest energy price possible. Rural network cablification has brought new trends in rural network architecture, but is it cost effective and profitable enough for the utility business to secure the power supply in these rural areas? The Distribution System Operator at Latvia Sadales tikis AS is making its way from the regulated to the deregulated market model with all of the business challenges to be the most competitive distribution utility in the Baltic States. Where is the optimal balance and what should be the drivers between State regulation, supply reliability in rural areas, and business driver - profit?