As the energy sector grapples with the dual challenges of increasing demand and the integration of renewable resources, a new study sheds light on a critical aspect of grid reliability—interruption costs stemming from transmission failures. Conducted by Shandesh Bhattarai from the Department of Electrical and Computer Engineering at The University of Saskatchewan, this research introduces a methodology to estimate the financial impact of power outages caused by transmission system failures, a topic that has been notably underexplored in previous studies.
The rising adoption of intermittent energy sources, such as wind and solar, alongside the electrification of transportation, complicates the balance of supply and demand on power grids. Bhattarai notes, “The traditional focus on generation inadequacy fails to capture the full picture of reliability. As we transition to smarter grids, understanding the costs associated with transmission failures is essential for making informed investment decisions.”
This innovative approach employs a sector period model that categorizes customers—residential, commercial, and industrial—allowing for a nuanced assessment of the monetary losses incurred during outages. By analyzing data from a 2017 outage cost survey in Saskatchewan, Bhattarai and his team have crafted a composite customer damage function that reflects the variability of interruption costs across different times of the day and seasons. This granularity is crucial, as the cost of an outage can vary dramatically; for example, an outage during business hours can be significantly more costly for commercial customers than during off-peak times.
The implications of this research extend beyond academic interest. As utilities face increasing pressure to modernize infrastructure while keeping costs manageable, the findings offer a pathway to justify investments in emerging technologies that enhance grid reliability. Bhattarai emphasizes, “Our methodology not only aids in estimating outage costs but also supports decision-making for investments in grid resilience, particularly against extreme weather events that are becoming more frequent due to climate change.”
With the energy landscape evolving rapidly, these insights could prove invaluable for utility companies and policymakers alike. By accurately assessing the economic effects of transmission-related outages, stakeholders can prioritize investments that not only enhance reliability but also mitigate the financial risks associated with power interruptions.
This study, published in ‘Applied Sciences,’ highlights a pivotal shift in how the energy sector can approach reliability investments. As the industry moves forward, Bhattarai’s work could serve as a cornerstone for developing more resilient power systems, ultimately benefiting both utilities and consumers. For more information about Shandesh Bhattarai’s work, you can visit The University of Saskatchewan.
