Reserve Cost Allocation Model

Units:	-
Mode:	Input Only
Multi-band:	False
Default Value:	0
Validation Rule:	In (0,1,2,3)
Key Property:	No
Description:	Reserve cost allocation method.
Detail:

Reserve Cost Allocation Model sets the method used to allocate the cost of reserve back to the set of generators identified in the Generator Cost Allocation collection. The available options are:

None (value = 0)

No allocation of costs is performed.

Runway Method (value = 1)

This is the New Zealand NZEM method of cost allocation. The runway method was originally developed as a model of how to allocate airport costs to aircraft types. The underlying principle of the runway method is to allocate the highest costs to the largest user, and disproportionately less to smaller users. In the our context, this means that the larger generating sets are allocated the largest share of the costs..

Probabilistic Runway Method (value = 2)

This is the Singapore SNEM method of cost allocation. It is a variation of the runway method that takes account of forced outage rate in allocating costs.

Pro-rata Method (value = 3)

Generators are allocated costs as a simple function of their load level.

Note that only generators that meet the Cut-off Size are considered for cost allocation.