Risk Analysis of Electricity Demand at Public Electric Vehicle Charging Stations (SPKLU): CVaR Model Approach

  • Teuku Sadri Ramadhan Faculty of Economics and Business, Universitas Indonesia, Salemba, Jakarta Pusat, 10440, Indonesia (ID)
  • Buddi Wibowo Faculty of Economics and Business, Universitas Indonesia, Salemba, Jakarta Pusat, 10440, Indonesia (ID)

Abstract

The electricity demand at Public Electric Vehicle Charging Stations (SPKLUs) exhibits significant volatility, which is driven by several aspects including electricity demand patterns at specific time intervals, load variability, SPKLU capacity, and other related factors. The variability of these swings can present hazards for SPKLU operators in relation to energy administration as well as operational and financial hazards. The objective of this study is to assess the risk associated with energy demand fluctuation at SPKLUs by employing the Conditional Value-at-Risk (CVaR) model technique. CVaR, or Conditional Value at Risk, is a quantitative measure of risk that calculates the predicted loss value in the most unfavorable situation. It is commonly employed to enhance the risk management approach of SPKLUs. The electricity demand at SPKLU exhibits significant volatility, with an average fluctuation of 10.15% and a standard deviation of 49.67%. The CVAR, calculated at -121.19% for a confidence interval of 1%, represents the maximum potential loss that could be experienced during worst-case electrical demand conditions, highlighting the substantial fluctuations in demand. The study initially implemented the CVaR model to analyze power demand at SPKLU, providing novel perspectives on risk reduction for critical infrastructure and proposing unique strategies for managing demand fluctuations in a reliable and efficient manner. The results also offer comprehensive insights into risk exposure and facilitate the formulation of well-informed and strategic risk management plans.



Published
2024-05-18
Section
Articles
How to Cite
Ramadhan, T. S., & Wibowo, B. (2024). Risk Analysis of Electricity Demand at Public Electric Vehicle Charging Stations (SPKLU): CVaR Model Approach. Quantitative Economics and Management Studies, 5(3), 528-540. https://doi.org/10.35877/454RI.qems2580