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Review of the Swedish Network Performance Assessment Model
KTH, School of Electrical Engineering (EES), Electromagnetic Engineering.ORCID iD: 0000-0003-4763-9429
MML Åhus.
KTH, School of Electrical Engineering (EES), Electromagnetic Engineering.ORCID iD: 0000-0001-6882-3642
2008 (English)Report (Other academic)
Abstract [en]

The Swedish energy agency (STEM), has developed a new regulatory model to supervise the revenues of the Distribution System Operators (DSO), referred to as the Network Performance Assessment Model (NPAM). The fundamental idea of the NPAM is that the electrical distribution system provides customer values, and the DSO is allowed to collect revenue corresponding to these values. The NPAM calculates customer values for a fictive electrical distribution system, with a total cost referred to as the Network Performance Assessment (NPA). The allowed debiting rate for a DSO is defined by the quotient of the revenue and the NPA. If the debiting rate is higher than a certain value, defined by the Energy Market Inspection (EMI) at STEM, the DSO is placed under review and could be forced to pay back revenue to customers. A lawsuit is currently in progress on this use of the NPAM, which has highlighted drawbacks in the model. This paper provides a comprehensive presentation of the NPAM. It describes in detail the different input data for the model, the steps in the calculations and the resulting cost factors. The paper also presents for the first time details on the theory underlying the calculations.

Place, publisher, year, edition, pages
2008. , 9 p.
Keyword [en]
Electrical Distribution System, Regulatory model, Network Performance Assessment Model, NPAM, Customer value, Outage cost, Probability, Performance-based regulation, Redundancy, Reference networks, Monte Carlo simulation and Reliability
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
URN: urn:nbn:se:kth:diva-8309OAI: oai:DiVA.org:kth-8309DiVA: diva2:13595
Note
QC 20101125 This paper was included in a licentiate thesis, but later rejected. A later version of this paper is accepted: http://kth.diva-portal.org/smash/record.jsf?parentRecord=diva2:433030&pid=diva2:415658 (inluded in a PhD thesis) Available from: 2011-08-24 Created: 2008-04-30 Last updated: 2011-08-24Bibliographically approved
In thesis
1. On Risk Management of Electrical Distribution Systems and the Impact of Regulations
Open this publication in new window or tab >>On Risk Management of Electrical Distribution Systems and the Impact of Regulations
2008 (English)Licentiate thesis, comprehensive summary (Other scientific)
Abstract [en]

The Swedish electricity market was de-regulated in 1996, followed by new laws and a new regulation applied to the natural monopolies of electrical distribution systems (EDS). These circumstances have motivated distribution systems operators (DSOs) to introduce more comprehensive analysis methods. The laws, the regulation and additional incentives have been investigated within this work and results from this study can be valuable when developing risk methods or other quantitative methods applied to EDS. This tendency is not unique for Sweden, the results from a comparative study of customer outage compensation laws between Sweden and UK is for example included.

As a part of investigating these incentives, studies of the Swedish regulation of customer network tariffs have been performed which provide valuable learning when developing regulation models in different countries. The Swedish regulatory model, referred to as the Network Performance Assessment Model (NPAM), was created for one of the first de-regulated electricity markets in the world and has a unique and novel approach. For the first time, an overall presentation of the NPAM has been performed including description of the underlying theory as a part of this work. However, the model has been met by difficulties and the future usage of the model is uncertain. Furthermore, the robustness of the NPAM has been evaluated in two studies with the main conclusion that the NPAM is sensitive toward small variations in input data. Results from these studies are explained theoretically investigating algorithms of the NPAM.

A pre-study of a project on developing international test systems is presented and this ongoing project aims to be a useful input when developing risk methods. An application study is included with the approach to systematically describe the overall risk management process at a DSO including an evaluation and ideas of future developments. The main objective is to support DSOs in the development of risk management, and to give academic reference material to utilize industry experience. An idea of a risk management classification has been concluded from this application study. The study provides an input to the final objective of a quantitative risk method.

Place, publisher, year, edition, pages
Stockholm: KTH, 2008. vii, 60 p.
Series
Trita-EE, ISSN 1653-5146 ; 2008:023
Keyword
Electrical Distribution System, Maintenance Management, Project Planning, Regulation, Reliability Analysis, Reliability Centred Maintenance (RCM), Reliability Centered Asset Management (RCAM), Risk Analysis, Risk Management, Risk Methods, the Network Performance Assessment Model (NPAM)
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
urn:nbn:se:kth:diva-4717 (URN)978-91-7178-954-9 (ISBN)
Presentation
2008-05-15, H1, Teknikringen 33, Teknikringen 33, Stockholm, 14:00
Opponent
Supervisors
Note
QC 20101125Available from: 2008-04-30 Created: 2008-04-30 Last updated: 2010-11-25Bibliographically approved

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Bertling, LinaWallnerström, Carl Johan

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