Guaranteeing that the Lights Always Come on - What is it Really Worth?

Abstract

Power outages are inconvenient and costly. Reducing the number of these is often possible but doing so itself creates costs that are eventually borne by electricity users. This seminar describes how optimal investment in supply security can be determined and illustrates with an application from the Netherlands. Michiel de Nooij is a senior researcher at the University of Amsterdam's SEO Economic Research where he undertakes applied research in the areas of competition and regulation with a particular focus on energy issues.