Altruistic versus profit maximising system operators of rural power systems

Abstract

This paper presents a methodology using Monte Carlo Simulation for analysing and compare the impact of two types of monopolistic rural power system operators (altruistic and profit maximising operators) on the probability distribution of tariff levels and reliability of the system. The market has price sensitive consumers. The developed model has been demonstrated on two power systems: only diesel genset and a wind-diesel hybrid system showing the impact of the generation costs and capacity of generation from wind on the tariff levels, expected profit and reliability.