Study Findings from Xi’an Jiaotong University Provide New Insights into Power and Energy Systems (Catastrophe Risk Management for Electric Power Distribution Systems: an Insurance Approach): Energy – Power and Energy Systems

2023 APR 12 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Current study results on Energy - Power and Energy Systems have been published. According to news originating from Xi’an, People’s Republic of China, by NewsRx correspondents, research stated, “High-impact, low-probability catastrophes may cause equipment damage, customer outages and serious economic losses to an aging power distribution infrastructure with low redundancy and automation. To cope with catastrophe risks faced by distribution systems (DSs), insurance is proposed as a supplement to existing resilience enhancement measures, which can provide financial aid in recovery after disasters, as well as incentives to make DSs more resilient to potential hazards.”

Financial support for this research came from Science and Technology Project of State Grid Corporation of China.

Our news journalists obtained a quote from the research from Xi’an Jiaotong University, “This calls for a quantitative assessment for insurance pricing that can not only predict potential losses caused by future catastrophes but also evaluate the effect of risk management measures. In this paper, a four-module actuarial framework, including hazard, vulnerability, resilience, and insurance modules, is developed to assess the catastrophe risks of DSs. Based on Monte Carlo simulation (MCS) and mixed integer linear programming (MILP), the dynamic characteristics of disasters, random failures of equipment, control measures including fault isolation, load transfer, line patrolling, manual switching, and fault repair, are comprehensively incorporated in the premium determination of catastrophe insurance.”

According to the news editors, the research concluded: “Numerical simulations are performed on the modified IEEE 33-bus test systems to illustrate the validity of the proposed catastrophe insurance schemes.”

For more information on this research see: Catastrophe Risk Management for Electric Power Distribution Systems: an Insurance Approach. CSEE Journal of Power and Energy Systems, 2023;9(1):393-410. CSEE Journal of Power and Energy Systems can be contacted at: China Electric Power Research Inst, 15, Qinghe Xiaoying Dong Lu, Haidian-Qu, Beijing, 100192, Peoples R China.

The news correspondents report that additional information may be obtained from Gengfeng Li, Xi’an Jiaotong University, Dept. of Electrical Engineering, State Key Lab Elect Insulat & Power Equipment, Smart Grid Key Lab Shaanxi Prov, Xian 710049, People’s Republic of China. Additional authors for this research include Siyuan Sun, Yiheng Bian, Zhaohong Bie and Qianwen Hu.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.17775/CSEEJPES.2021.06920. 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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