installed capacity of generation (higher capacity margins) the lower the LOLP (this
moves the generation availability curve to the right and LOLP reduces). The gen-
eration capacity is considered adequate if the evaluated LOLP of a system (or
future system in the planning domain) meets the threshold level.
This approach to planning and design of generation systems worked satisfac-
torily for several decades. Various reliability indices have been applied in different
systems to evaluate adequate levels of generation capacity. More common indices
include reserve margin, loss of load probability (LOLP), loss of load expectation
(LOLE), expected energy not served (EENS) while less common indices include
loss of energy probability, frequency and duration of failures, effective load car-
rying capability and firm equivalent capacity. It should be noted that the popularity
of an index is not necessarily based on it giving a more accurate assessment of
system reliability rather it was mostly due to the ease of its use and required input
or data for its assessment.
Examples of applied reliability indices:
● The North American Electricity Reliability Council (NERC) reports the use of
LOLP, LOLE and reserve margin to evaluate the adequacy of their regional
generation portfolios. Many of the regional reliability councils (regions) in
NERC’s jurisdiction apply either LOLP (1 in ten years) or LOLE (0.1 day/year
or 2.4 hour/year) [1].
● In Australia the reliability standard for generation and bulk supply are
expressed in terms of the maximum permissible unserved energy or the max-
imum allowable level of electricity at risk of not being supplied to consumers.
This is 0.002% of the annual energy consumption for the associated region or
regions per financial year [2].
● France [3] and Republic of Ireland [4] apply LOLE criteria of 3 and 8 hours/
year, respectively, to plan their generation systems.
These traditional planning approaches have been common practice for several
decades in particular for a centrally planned thermal dominated system.
5.2.2 Impact of distributed generation
The methodology described in Section 5.2.1 can be extended to determine the
adequate level of generation capacity in a system with wind, and other intermittent,
generation . We primarily focus on the impact of wind generation, but the concepts
are applicable to other forms of distributed generation. Unlike a two-state repre-
sentation of conventional thermal generators, that are either in service and available
to produce full output or not available at all (zero output), wind is modelled as a
generator with multiple levels of outputs characterised by different probabilities.
The frequency distribution of the aggregate wind generation can be obtained from
the annual half-hourly profiles of wind output from historic wind output data.
1
1
This assumes that there is no correlation between peak demand and the level of wind output (which is
generally conservative as wind farms in Europe tend to produce higher levels of output during winter
peak periods).
130 Distributed generation