Findings from Xi’an Jiaotong University in the Area of Energy Described (Risk Management for Integrated Power and Natural Gas Systems Against Extreme Weather: a Coalitional Insurance Contract Approach): Energy

2023 JAN 18 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Investigators publish new report on Energy. According to news originating from Shaanxi, People’s Republic of China, by NewsRx editors, the research stated, “Integrated power and natural gas systems (IPGSs) are vulnerable to extreme weather. The system operators are facing risks of huge economic losses.”

Funders for this research include Fundamental Research Funds for the Central Universities, State Key Laboratory of Electrical Insulation and Power Equipment, China.

Our news journalists obtained a quote from the research from Xi’an Jiaotong University, “An insurance could be the appropriate approach for system operators to manage and transfer the risks of huge economic losses to the third-party entities. However, conventional standalone insurance design will induce the free-ride phenomenon and the missing of integration incentive in IPGSs. Thus, to bridge the gaps, we proposed a novel coalitional insurance design for the IPGSs against the extreme weather. To control the risk of insurer insolvency, the premium of the coalitional insurance is determined based on the resilience assessment-based actuarial framework. To provide appropriate incentive in inter-energy assistance, the indemnity is allocated by a combined damage-based and assistance-based policy. Asymmetric Nash bargaining is adopted to ensure the fair allocation of indemnity. Favorable properties include budget balanced, low safe loading cost, free-ride averse, and integration beneficial are theoretically and numerically proved.”

According to the news editors, the research concluded: “Numerical tests are conducted on the modified IEEE 39-bus Belgium 20-node IPGS to validate the effectiveness of the proposed coalitional insurance contract design.”

This research has been peer-reviewed.

For more information on this research see: Risk Management for Integrated Power and Natural Gas Systems Against Extreme Weather: a Coalitional Insurance Contract Approach. Energy, 2023;263. Energy can be contacted at: Pergamon-elsevier Science Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, England. (Elsevier - www.elsevier.com; Energy - http://www.journals.elsevier.com/energy/)

The news correspondents report that additional information may be obtained from Haipeng Xie, Xi’an Jiaotong University, State Key Lab Elect Insulat & Power Equipment, Xian 710049, Shaanxi, People’s Republic of China.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.energy.2022.125750. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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