Smart Grids and Energy Storage Systems: Powering the Future of Energy In today’s rapidly evolving energy landscape, the push towards sustainability, efficiency, and reliability is stronger than ever. Traditional power grids, though robust in their time, are no longer sufficient to meet the demands of a modern, digital, and environmentally conscious society. This is where smart grids and energy storage systems (ESS) come into play — revolutionizing how electricity is generated, distributed, and consumed. What is a Smart Grid? A smart grid is an advanced electrical network that uses digital communication, automation, and real-time monitoring to optimize the production, delivery, and consumption of electricity. Unlike conventional grids, which operate in a one-way flow (from generation to end-user), smart grids enable a two-way flow of information and energy. Key Features of Smart Grids: Real-time monitoring of power usage and quality. Automated fault detection and rapid restoration. Int...
Some of the principles of economics adopted in Managerial Economics are as follows
1. Incremental Principle:
Incremental concept is closely related to marginal cost and marginal revenue.
Marginal cost: cost incurred for producing an extra unit.
Marginal revenue: change in total revenue attributable to the last unit of output.
In real life business it becomes difficult to find out the cost or revenue which comes out of the additional unit produced or sold. Hence the concept of marginalism is replaced by incrementalism. Here in incrementalism the cost or revenue is attributed to the batch of units produced.
Incremental Cost: Incremental cost is the change in total cost as a result of change in the level of output, investment etc.
Incremental Revenue: Incremental revenue is the change in total revenue resulting from a change in the level of output price etc.
2. Opportunity Cost Principle:
Every organisation is having resources which can be utilized only to a certain extent sometimes the resources may scarce so one cannot have everything one wants. The organisation is forced to make a choice by choosing one option they have to sacrifice the next option.
Thus opportunity Cost of a decision is the sacrifice of alternatives required by that decision. Opportunity Cost is the benefit or revenue that is foregone by pursuing one course of action rather than another.
3. Concept of Contribution:
It includes incremental analysis and opportunity cost. The concept contribution explain about the contribution of a unit of output to overheads and profits. This concept helps manager in determining the best product mix when allocating scarce resources over those products.
4. Discounting Principle:
The fundamental ideas in this principle is that a rupee tomorrow is worthless than a rupee today, because future is uncertain and also return in future is less attractive than the same return today. The implications of this principle is that if a decision affects costs and revenues to present value before a valid comparison of alternatives are possible.
5. Equi Marginal Principle:
This principle deals with the allocation of the available resources within the firm's capabilities among the various alternative activities of the firm. Here by this principle the input should be allocated so that the value added by the last unit is the same in all cases. This generalization is called the equimarginal principle.
6. Risk and Uncertainity:
Uncertainity influences the estimation of costs and revenue and thereby the decisions of the organisation. Management of the organisation deals with decisions which have long term bearing and future conditions are not perfectly predictable there is always a risk involved because of the uncertainity of the outcome of these decisions.