Novel approach for evaluation of service reliability for electricity customers

Understanding reliability value for electricity customer is important to market-based reliability management. This paper proposes a novel approach to evaluate the reliability for electricity customers by using indifference curve between economic compensation for power interruption and service reliability of electricity. Indifference curve is formed by calculating different planning schemes of network expansion for different reliability requirements of customers, which reveals the information about economic values for different reliability levels for electricity customers, so that the reliability based on market supply demand mechanism can be established and economic signals can be provided for reliability management and enhancement.