Study on value of lost load in China based on complete benefit analysis

Electric power industry is the key industry of national economy. Correct evaluation of the value of lost load (VOLL) can provide scientific basis for power system planning, economic operation of power market, DSM and policy decisions of power industry and so on. The idea of the paper is the GDP or value added of sectors per power consumption is not scientific as the national or sectoral VOLL. It should be based on the input-output relationship to do the research. The paper has inferred the formula of power industry’s drawing and impetus function on each sector of the national economy on the basis of input-output method, then considered the economic benefits of power industry itself totally, finally get the contributions of unit power consumption of power industry on entire national economy and each sector, which is the size of VOLL. It also does the case study based on the 2002 I-O table of China.