Abstract
Security of electricity supply has become a fundamental requirement for well-functioning modern societies. Because of its central position in all sections of society, the present paper considers the economic consequences of a power supply interruption. The Value of Lost Load (VoLL) is a monetary indicator expressing the costs associated with an interruption of electricity supply. This paper reviews different methods for calculating VoLL, provides an overview of recently published studies, and presents suggestions to increase the explanatory power and international comparability of VoLL.
Highlights
Power blackouts or interruptions of supply all over the world demonstrate the potential of severe socioeconomic disruptions and economic losses
Country-specific features are of particular significance in identifying the results but cannot be varied for the analysis
The three other factors that can affect the VoLL calculation are the choice of method, the structuring of the scenario framework, and the breakdown of the industrial structure by data processing
Summary
Power blackouts or interruptions of supply all over the world demonstrate the potential of severe socioeconomic disruptions and economic losses. Revealed Preferences Another approach to determining the costs of power outages is the derivation of VoLL from current market behavior In this case, VoLL is either derived from the behavior of companies and households with respect to their investment activities, for example, standby generators or batteries, or from the conclusion of interruptible supply contracts. VoLL is either derived from the behavior of companies and households with respect to their investment activities, for example, standby generators or batteries, or from the conclusion of interruptible supply contracts These expenditures can be analyzed with respect to the willingness of electricity customers to pay for uninterruptible power supply. That the economic indicator for evaluating the security of the power supply, VoLL, and the various survey and calculation methods have been presented in Section “VoLL Measurement Approaches,” the following will give an overview of current studies on VoLL. Tol (2007) differentiates 19 industrial sectors whereas Baarsma and Hop (2009) regard industry as one overall sector
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
