Brattle Team Conducts a Value of Lost Load Study for the ERCOT Region in a New Report
Prepared for the Electric Reliability Council of Texas, Inc. (ERCOT)
In a recent report prepared for the Electric Reliability Council of Texas, Inc. (ERCOT), Principals Dr. Charles Gibbons and Dr. Sanem Sergici summarize findings from their study of the estimated value of electric reliability in the ERCOT Region.
Conducted with support from PlanBeyond, the study aimed to estimate the value of electricity reliability through Value of Lost Load (VOLL) estimates, which are a proxy for the economic costs that customers incur due to power outages. Residential, commercial, and industrial customers in the region were surveyed to determine ERCOT-specific VOLL values for use in system planning efforts. Knowledge of the VOLL values can help inform cost-benefit decisions with respect to generation and transmission investments and can be an important input for resource adequacy decisions.
”We are pleased to complete this important study on behalf of ERCOT and in collaboration with Lawrence Berkeley National Lab,” noted Dr. Sergici. “Not only will the VOLLs reflecting ERCOT customers’ valuation of reliable power be essential for important reliability planning and investment decisions in the ERCOT Region, they will also provide new data for LBNL to enhance their ‘Interruption Cost Estimate (ICE)’ calculator, which is widely used by industry practitioners.”
The full report, “Value of Lost Load Study for the ERCOT Region,” is available below.
