Severity index‐based voltage sag insurance for high‐tech enterprises

Abstract

Economic losses caused by power disturbances such as voltage sags and short interruptions have become an important concern for high‐tech enterprises in recent years. A potential solution to address this challenge is to provide value‐added services such as voltage sag insurance to help enterprises to manage voltage sag risks. This study presents a severity index‐based voltage sag insurance scheme including the liability, period, premium and compensation. Voltage sag severity is used as the index of insurance to define the trigger and limit of liability. The production value of enterprises suffered with voltage sags is obtained by introducing economics thus can accurately quantify the interaction between technical indexes of voltage sag and the economic indexes required for premium. Finally, case studies of three high‐tech enterprises located in China have proved the correctness and rationality of the proposed insurance scheme.