Planning, Pricing and Public Policy Issues for Reliability of Interconnected Solar Energy Systems

The electric power system reliability criteria and rate structures adopted by regulatory commissions and utilities have important impacts on the design, cost, and market penetration rate of photovoltaic and other dispersed solar electric systems. The implications of alternative levels of reliability for dispersed generating facilities are examined through an end-user decision analysis in which the reliability of dispersed and utility electric supply are considered. Broad issues of public policy are addressed from the perspective of end users´ demands and the social costs of reliability. We conclude that benefits and costs of electric power reliability for the end user should be considered in establishing reliability standards and rates for interconnected dispersed solar systems.