Reliability cost/worth analysis of nonutility generation

The electrical energy component provided by conventional generating sources is expected to decline slightly in the future due to environmental concerns and the penetration of new sources of energy. It is expected that nonutility generation (NUG) and cogeneration will increase their market share of the total as a result of the energy policies currently being adopted by many governments and power utilities around the world. The reliability and economic implications of capacity additions from independent power producers (IPP) can be quite significant. This paper discusses the impacts of NUG on reliability worth in a generating system and a composite generation and transmission system using a hypothetical test system.