2022 IEEE 5th International Electrical and Energy Conference (CIEEC 2022)

With the deepening of power system reform and the wide application of renewable energy generation. Consumers need more reliable power systems. This paper presents an insurance pricing method based on power system reliability analysis. This method embeds system reliability into actuarial science. Based on the outage losses from reliability analysis, premiums are calculated for different kinds of users. And then an advanced principle of value-at-risk is used to improve the computational methods of premium. Firstly, the reliability of power system is analyzed based on Monte Carlo method. Secondly, the model of outage loss is designed according to the outage time, and the characteristics of different power users are taken into account. Finally, considering the value-at-risk theory, the loss of power outage is used to calculate the premiums. The application of insurance mechanisms to power systems can provide users with an economic method to avoid major unexpected losses.

power system reliability;Monte Carlo method;insurance premium;value at risk