In Fig.7, the impact of component reliability on busbar 1003’s charge is presented. Obviously, the charge from the new model decreases gradually with the decline in 1003’s supporting components’ FRs. When they are 1.0time/yr, the charge is approximately 25£/kW/yr, which decreases steadily to merely about 4£/kW/yr when the FRs are 0.1time/yr. The reason is that when the FRs are small, the components rarely fail and hence less of their capacity needs to be reserved for catering for contingencies. In the extreme cases that all components’ failure rates are zero, i.e. they never fail, there is no need to reserve component capacity to accommodate contingency. Under such context, the charges only depend on components’ rated capacity, load growth rate, and system loading conditions.As demonstrated, nodal charges are brought down by considering nodal unreliability tolerance and component reliability, the degree of which depends on the allowed load loss size and component reliability levels. Bigger unreliability tolerance and more reliable components tend to generate low charges, and vice versa. For network operators, although increasing component reliability levels, achieved by reducing
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