VARIOUS METHODS FOR ESTIMATING POWER OUTAGE COSTS - SOME IMPLICATIONS AND RESULTS IN TAIWAN

Abstract

This paper first presents various methods for estimating outage costs and a comprehensive review of related literature on the subject. Four types of outage costs are then discussed, and their empirical results for Taiwan are compared. The authors argue that selecting an appropriate method for estimating a specific type of outage cost is extremely important. In addition, the economic implications of each different type of outage cost, as well as its strengths and weaknesses, must be assessed. Finally, some empirical results for Taiwan are presented and further research areas are recommended.