Principles for the formulation of policy for the Electricity System

Robert W Scherer coal-fired power plant, Juliette, Georgia

Outline of a Total System Analysis

A Total System Analysis would address the main requirements of an electricity system in a comprehensive set of studies by:

The basis of the total system cost methodology is to include all the costs (both capital and revenue) for both generation and transmission that will be paid by customers.  Various generation plant programmes can then be compared on the basis of both cost (present valued) and carbon emissions.

Taking each major item of cost in turn:

Adding the present value (PV) of all the costs above would allow for the comparison of total system costs of different generation plant programmes.

By comparing the amounts of fossil fuels used, it would be possible to assess the amount of carbon emissions saved by any measure included for this purpose.

For each scenario modelled, risks will inevitably differ, and will need to be assessed. A quantified risk analysis should be used to yield the range of probable outcomes of costs and carbon to better inform strategic decisions.