OPTIMIZATION MODEL TO MINIMIZE BUDGET SUBSIDIES CONSIDERING UNCERTAINTY IN ELECTRICITY DEMAND
| Main Author: | Enrique B. Cedeno |
|---|---|
| Format: | Article |
| Terbitan: |
, 2019
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| Subjects: | |
| Online Access: |
https://zenodo.org/record/3262358 |
Daftar Isi:
- Real-time variations in electricity demand affect the balance between subsidies and contributions. In cases in which subsidies are greater than contributions, additional funds are provided by the government using budget subsidies. Energy policy and planning decisions should include uncertainty in electricity demand to avoid the risk of suboptimal decisions that result in inefficient resource allocation. This research formulates an optimization model to minimize average budget subsidy over a set of random demand scenarios. Results over one hundred random demand values for each residential group indicate for the case study presented here based in the Colombian system it is very unlikely that the cross-subsidy system can operate without requiring a budget subsidy even for small fluctuations in electricity demand subject to bounds on subsidy and contribution factors prevailing during the study period.