Question

what are the three different ways to measure VOLL? describe the superior technique and why it is superior

Answer 1

VOLL means Value Of Lost Load,which is an economic indicator for evaluating the security of the power supply, 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.

Different Method or Approaches to Measure VoLL

▪Direct (Survey)

1. Blackout studies.

2. Direct Costs.

3. Willingness to pay/Avoid

▪Indirect (Survey)

1. Macroeconomics Approaches.

2. Revealed Preference.

So, We are discussing about three VoLL only.

▪DIRECT COSTS:

In this Approach, interviewees are given a set of different blackout scenarios, for example, of different durations or starting times, to give them a feeling for the general issues involved in a power outage. For each scenario, the end users are asked about the damage costs that they would experience in each situation. In some studies, interviewees are asked to divide the damage costs into categories.

▪Blackout Studies:

In this Method, the resulting damage costs of a real power interruption are recorded retrospectively. The interruption parameters are clearly defined. This method is mainly used for long-lasting and large-area interruptionsA blackout study can also be used as a reference for verifying other VoLL methods. As part of the cost survey, blackout studies also frequently analyze both the performance of the emergency services as well as the impacts on the ecological system.

▪ Revealed Preference:

In this approach determines 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. These expenditures can then be analyzed with respect to the willingness of electricity customers to pay for uninterruptible power supply.Assuming a very high level of supply security, as in most developed countries, this method is not applicable in practice since the investment activities of electricity customers are not accessible to analysis

So out of this methods Direct Cost is Superior Method.

Reason:

▪It identify the cost categories

▪This Method weight each category with an economic value, and

▪ Also determinea the interruption costs by adding up the individual damage costs.