Abstract:
The present paper attempts to analyse the implications of the
relationship between reliability and rationing cost involved in a power
supply system in the framework of the standard inventory analysis,
instead of the conventional marginalist approach of welfare economics.
The study is substantiated by fitting a normal distribution to the daily
internal maximum demand of the Kerala power system during 1995-96,
and also by estimating, based on the techno-economic parameters of
different types of power plants, the rationing costs implied in different
reliability target criteria.
