Assessment of Long-Run Marginal Costs for Designing Electricity Tariffs Based on Analysis of Electric Power Least-Cost Expansion Programs

摘要

Estimates of long-run marginal cost (LRMC) for electrical generation are an important ingredient in designing economically efficient tariffs. An approach that relies on results from a widely accepted generation planning model for estimation of LRMC has been developed and applied in recent years. The model, the Wien Automatic System Planning Package (WASP-III), is supported and distributed by the International Atomic Energy Agency (IAEA). For estimation of marginal energy cost and other important planning information, the Model for Investigation of Costs and Reliability for Utility Systems (ICARUS) is used together with the least-cost expansion plan determined by WASP-III. An overview of the methodology and models is provided. (ERA citation 13:008963)