Abstract
Increase in the forced outage factor (FOF) can cause national burden because it reduces the sales of generation companies and operates high cost generator based on merit order.
However, investment to reduce FOF beyond the optimum level would increase the cost more than the relevant benefit. The generation companies tend to overinvest on overhaul in order to receive good scores in management evaluation conducted by the government even though current electricity supply is quite stable. Thus, this paper aims to estimate optimal forced outage factor considering social cost by using fixed and random effect panel data model. The results show that optimal forced outage factor is 3.2% in LNG generator, 3.5% in bituminous coal generator, and 3.2~3.3% in overall.
However, investment to reduce FOF beyond the optimum level would increase the cost more than the relevant benefit. The generation companies tend to overinvest on overhaul in order to receive good scores in management evaluation conducted by the government even though current electricity supply is quite stable. Thus, this paper aims to estimate optimal forced outage factor considering social cost by using fixed and random effect panel data model. The results show that optimal forced outage factor is 3.2% in LNG generator, 3.5% in bituminous coal generator, and 3.2~3.3% in overall.
| Translated title of the contribution | A study on the optimum forced outage factor for the power plants |
|---|---|
| Original language | Korean |
| Pages (from-to) | 225-239 |
| Number of pages | 15 |
| Journal | 한국혁신학회지 |
| Volume | 11 |
| Issue number | 2 |
| State | Published - Aug 2016 |