The Value of Lost Load for Sectoral Load Shedding Measures: The German Case with 51 Sectors

The transition of the German electricity system towards a renewable, nuclear free and increasingly fluctuating power generation raises concerns about supply security. A possible contribution to solve this issue might lie in demand response or load shedding measures. The goal of our work is to monetarily quantify the consequences of power interruptions. The focus lies on power interruption costs in 51 economic sectors. Two input-output models are proposed to estimate the Value of Lost Load for each sector. The first does not take inter-linkages of the sectors and possible cascading effects on interruption costs into account. The second model is a new and innovative approach which is based on the Ghosh Input-Output model and which accounts for these effects. We assume that the first model is adequate to assess shorter power interruptions, whereas the second model might be more appropriate when estimating costs of longer interruptions.

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