OIES Podcast – Consumer reliability preferences in electricity markets with a capacity requirement

Podcasts - Oxford Institute for Energy Studies

In this latest OIES podcast Hasan Muslemani talks to Frank Felder about his forthcoming OIES paper ‘The Challenges of Incorporating Consumer Reliability Preferences in Electricity Markets with a Capacity Requirement’. Power outages and major blackouts are widespread, affecting hundreds of millions globally. One way to improve reliability and reduce costs is to have more customers adjust their electricity consumption based on system conditions, but demand response needs to be developed faster. A market-based way for consumers to do so may help, combined with technological advances in smart meters and load control devices. The podcast explains how to incorporate different customer reliability preferences in power systems or markets that have resource adequacy/capacity requirements. It also explains how allowing customers to opt out of such requirements while ensuring they will be disconnected during shortages is the first step in incorporating reliability and resiliency preferences and this can become more customer-specific and tailored over time.