Expected Energy Production Cost of Two Interconnected Systems with Correlated Demands

Abstract

Cost analysis is an important aspect in system planning whether the system is interconnected with other systems or the system is meeting its own demand. nd. A probabilistic technique for the calculation of production cost of two interconnected systems with correlated elated demands is developed. The proposed method is based on the notion of statistical cumulants and the bivariate Gram-Charlier expansion. The method is computationally utationally efficient since convolutions are performed using the appropriate statistical cumulants. The method hod has been applied to two interconnected systems in which the production costs for each system are evaluated ed for different tie line capacities.