An economic model for the cost of electricity service interruption in South Africa

Cost of unserved energy provides an economic measure of the cost of electricity interruptions to electricity customers. These values inform investment and refurbishment decisions related to the power system, with the aim of optimizing network reliability. This paper reports on the development of an economic model to estimate the value of electricity reliability in South Africa by Eskom to meet regulatory requirements. The model allows for the scalability of COUE from national level to more detailed resolutions. The impact is that decisions for power system investment can be made to meet the needs of planning and regulatory applications.