Title :
An analytical formula for the mean and variance of marginal costs for a power generation system
Author :
Shih, Fen-Ru ; Mazumdar, Mainak
Author_Institution :
Dept. of Ind. Eng., Pittsburgh Univ., PA, USA
fDate :
8/1/1998 12:00:00 AM
Abstract :
In the upcoming deregulated environment, the marginal cost of power generation will play an important role. This paper provides an analytical formula for estimating the expected value and variance of the average marginal cost over a given study horizon using an enhanced stochastic version of the Baleriaux model. For the numerical example considered, this procedure provides accurate estimates in much less computer time as compared to a Monte Carlo simulation
Keywords :
costing; electric power generation; power systems; deregulated environment; enhanced Baleriaux model; marginal costs variance; mean marginal costs; power generation system; recursive formulation; Analysis of variance; Capacity planning; Costing; Costs; Fuels; Power generation; Power generation economics; Power system analysis computing; Power system economics; Production;
Journal_Title :
Power Systems, IEEE Transactions on
