IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v31y2006i12p2193-2209.html
   My bibliography  Save this article

Incentive pricing and economic profitability of load management program

Author

Listed:
  • Sheen, J.N.

Abstract

This study considers both the internal and external costs of the utility in deriving the avoided capacity cost (ACC) and the avoided operating cost (AOC) induced in the power system in Taiwan (Taipower) caused by the implementation of load management (LM) program. The ACC comprises the avoided generation cost and the avoided network capacity cost. Meanwhile, the AOC is calculated by considering the differences between the total and specific time period energy consumption ratios before and after the implementation of the LM program. This study also develops a financial analysis method using least-cost and benefit-cost models to assess the financial profitability of implementing LM program from a participant's point of view. The design and construction of a partial load-leveling eutectic salt cooling energy storage air conditioning (CES) system in a target office building in Kaohsiung, Taiwan, is discussed in order to simulate the cost-benefit of the CES system from the perspective of the utility and from that of the participant. The results of this case study confirm the effectiveness of the developed models in simulating the economic benefits of implementing LM program from the perspectives of both the utility and the participant.

Suggested Citation

  • Sheen, J.N., 2006. "Incentive pricing and economic profitability of load management program," Energy, Elsevier, vol. 31(12), pages 2193-2209.
    • Handle: RePEc:eee:energy:v:31:y:2006:i:12:p:2193-2209
    DOI: 10.1016/j.energy.2005.08.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544205001763
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2005.08.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Soloveitchik, David & Ben-Aderet, Nissim & Grinman, Mira & Lotov, Alexander, 2002. "Multiobjective optimization and marginal pollution abatement cost in the electricity sector - An Israeli case study," European Journal of Operational Research, Elsevier, vol. 140(3), pages 571-583, August.
    2. John T. Wenders, 1976. "Peak Load Pricing in the Electric Utility Industry," Bell Journal of Economics, The RAND Corporation, vol. 7(1), pages 232-241, Spring.
    3. Hobbs, Benjamin F., 1995. "Optimization methods for electric utility resource planning," European Journal of Operational Research, Elsevier, vol. 83(1), pages 1-20, May.
    4. Didden, Marcel H. & D'haeseleer, William D., 2003. "Demand Side Management in a competitive European market: Who should be responsible for its implementation?," Energy Policy, Elsevier, vol. 31(13), pages 1307-1314, October.
    5. Hope, Chris & Maul, Philip, 1996. "Valuing the impact of CO2 emissions," Energy Policy, Elsevier, vol. 24(3), pages 211-219, March.
    6. Spalding-Fecher, Randall & Matibe, David Khorommbi, 2003. "Electricity and externalities in South Africa," Energy Policy, Elsevier, vol. 31(8), pages 721-734, June.
    7. Eyre, Nick, 1997. "External costs : What do they mean for energy policy?," Energy Policy, Elsevier, vol. 25(1), pages 85-95, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arteconi, A. & Hewitt, N.J. & Polonara, F., 2012. "State of the art of thermal storage for demand-side management," Applied Energy, Elsevier, vol. 93(C), pages 371-389.
    2. Dashti, Reza & Afsharnia, Saeed & Ghaderi, Farid, 2010. "AGA (Asset Governance Assessment) for analyzing affect of subsidy on MC (Marginal Cost) in electricity distribution sector," Energy, Elsevier, vol. 35(12), pages 4996-5007.
    3. Summerbell, Daniel L. & Khripko, Diana & Barlow, Claire & Hesselbach, Jens, 2017. "Cost and carbon reductions from industrial demand-side management: Study of potential savings at a cement plant," Applied Energy, Elsevier, vol. 197(C), pages 100-113.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fahlén, E. & Ahlgren, E.O., 2010. "Accounting for external costs in a study of a Swedish district-heating system - An assessment of environmental policies," Energy Policy, Elsevier, vol. 38(9), pages 4909-4920, September.
    2. Luo, Xianglong & Zhang, Bingjian & Chen, Ying & Mo, Songping, 2012. "Operational planning optimization of multiple interconnected steam power plants considering environmental costs," Energy, Elsevier, vol. 37(1), pages 549-561.
    3. Trotter, Philipp A. & McManus, Marcelle C. & Maconachie, Roy, 2017. "Electricity planning and implementation in sub-Saharan Africa: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1189-1209.
    4. Mazzarino, Marco, 2000. "The economics of the greenhouse effect: evaluating the climate change impact due to the transport sector in Italy," Energy Policy, Elsevier, vol. 28(13), pages 957-966, November.
    5. Francisco D. Munoz & Sonja Wogrin & Shmuel S. Oren & Benjamin F. Hobbs, 2018. "Economic Inefficiencies of Cost-based Electricity Market Designs," The Energy Journal, , vol. 39(3), pages 51-68, May.
    6. M. Jenabi & S. M. T. Fatemi Ghomi & S. A. Torabi & Moeen Sammak Jalali, 2022. "An accelerated Benders decomposition algorithm for stochastic power system expansion planning using sample average approximation," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1304-1336, December.
    7. Berna Tektas Sivrikaya & Ferhan Cebi & Hasan Hüseyin Turan & Nihat Kasap & Dursun Delen, 2017. "A fuzzy long-term investment planning model for a GenCo in a hybrid electricity market considering climate change impacts," Information Systems Frontiers, Springer, vol. 19(5), pages 975-991, October.
    8. H. Qi & C. K. Woo & K. H. Cao & J. Zarnikau & R. Li, 2024. "Price responsiveness of solar and wind capacity demands," Post-Print hal-04597188, HAL.
    9. Richard S.J. Tol, 2003. "The Marginal Costs Of Carbon Dioxide Emissions: An Assessment Of The Uncertainties," Working Papers FNU-19, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
    10. Chih Chen, 2015. "Assessing the Pollutant Abatement Cost of Greenhouse Gas Emission Regulation: A Case Study of Taiwan’s Freeway Bus Service Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(4), pages 477-495, August.
    11. Patrizio, P. & Leduc, S. & Chinese, D. & Kraxner, F., 2017. "Internalizing the external costs of biogas supply chains in the Italian energy sector," Energy, Elsevier, vol. 125(C), pages 85-96.
    12. Aliaga Lordemann, Javier & Herrerra Jiménez, Alejandro, 2014. "Energy-Mix Scenarios for Bolivia," Documentos de trabajo 8/2014, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    13. Reza Nadimi & Masahito Takahashi & Koji Tokimatsu & Mika Goto, 2024. "The Reliability and Profitability of Virtual Power Plant with Short-Term Power Market Trading and Non-Spinning Reserve Diesel Generator," Energies, MDPI, vol. 17(9), pages 1-19, April.
    14. BRECHET, Thierry & TULKENS, Henry, 2006. "From BAT (best available technique) to BCAT (best combination of available techniques)," LIDAM Discussion Papers CORE 2006105, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. Salmon, Claire & Tanguy, Jeremy, 2016. "Rural Electrification and Household Labor Supply: Evidence from Nigeria," World Development, Elsevier, vol. 82(C), pages 48-68.
    16. Thomas Weyman-Jones, 2023. "Energy Price Decoupling and the Split Market Issue," Energies, MDPI, vol. 16(16), pages 1-17, August.
    17. De Jonghe, C. & Hobbs, B. F. & Belmans, R., 2011. "Integrating short-term demand response into long-term investment planning," Cambridge Working Papers in Economics 1132, Faculty of Economics, University of Cambridge.
    18. Chan, Edwin H.W. & Qian, Queena K. & Lam, Patrick T.I., 2009. "The market for green building in developed Asian cities--the perspectives of building designers," Energy Policy, Elsevier, vol. 37(8), pages 3061-3070, August.
    19. Winkler, Harald, 2005. "Renewable energy policy in South Africa: policy options for renewable electricity," Energy Policy, Elsevier, vol. 33(1), pages 27-38, January.
    20. Cuenca, Juan J. & Daly, Hannah E. & Hayes, Barry P., 2023. "Sharing the grid: The key to equitable access for small-scale energy generation," Applied Energy, Elsevier, vol. 349(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:31:y:2006:i:12:p:2193-2209. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.