Modelling Dependent Outages of Electricity Power Plants
By Vishwakant Malladi, R Mendoza-Arriaga, S Tompaidis
Operations Research | December 2019
DOI
pubsonline.informs.org/doi/10.1287/opre.2019.1952
Citation
Malladi, Vishwakant., R Mendoza-Arriaga., S Tompaidis. Modelling Dependent Outages of Electricity Power Plants Operations Research pubsonline.informs.org/doi/10.1287/opre.2019.1952.
Copyright
Operations Research, 2019
Share:
Abstract
We propose a novel framework to model dependence of outages of electricity power plants. Our framework allows for commonality in outages to be driven by weather events and fuel shortages. We calibrate our model for power plants in the Electric Reliability Council of Texas and the Western Electricity Coordinating Council regions using a unique dataset of actual outages that we obtained from the North American Electric Reliability Corporation.

We find strong evidence of dependence in power plant outages system-wide, and based on the input fuel of the plants. We illustrate the consequences of outage dependence on the reliability of electricity supply for both regions and evaluate policy implications; e.g. the impact of building additional capacity. Major revision at Operations Research.

Vishwakant Malladi is an Assistant Professor of Operations Management at the Indian School of Business (ISB). He obtained his PhD in Risk and Operations Management from the McCombs School of Business, University of Texas at Austin. His research primarily focuses on risk in an operations management context and can be broadly divided into two areas. First, he works on parsimonious modelling of risk in high-dimensional systems using Lévy processes. Second, he studies the impact of risk and risk dependence in operations management problems such as inventory theory, reliability, and the facility location problem. Prior to his doctoral studies, Professor Malladi has worked as a Statistical Analyst for

Fractal Analytics and as an Equity Research Analyst for Centrum Capital. He holds a B. Tech in Mechanical Engineering from Indian Institute of Technology (IIT) Bombay and an MBA from Indian Institute of Management (IIM) Ahmedabad.

Vishwakant Malladi
Vishwakant Malladi