Proceedings ArticleDOI
Market-based rate design for recovering merchant transmission investment
Harold Salazar,Chen-Ching Liu,Ron F. Chu +2 more
- pp 1-1
TLDR
In this paper, a two-step market-based transmission rate design for recovering an MTP investment is presented, where the first step is to develop a firm transmission service rate for using the MTP via an open subscription bid process, and the second step identifies the range of transmission rates for developing possible rate discounts to encourage non-firm transmission usages.Abstract:
Merchant transmission projects (MTPs) are primarily market solutions for importing inexpensive power when this energy is available. As a market driven solution, full recovery of the investment is not guaranteed. In general, the recovery is based on transmission service charges and the value of incremental financial transmission rights (FTRs) created by the project. Since FTRs are valuable only when the system is constrained, the FTR's value diminishes as the constraint is eliminated by the MTP. Hence, the MTP will be commercially viable only if its transmission capacity is fully subscribed. Otherwise, the MTP will likely not be built. This paper presents a two-step market-based transmission rate design for recovering an MTP investment. The first step is to develop a firm transmission service rate for using the MTP via an open subscription bid process. If the MTP capacity is not fully subscribed, the authors propose that the remaining investment be recovered via nonfirm transmission services if and when cheap energy is available. Considering the random availability of economic energy, this second step identifies the range of transmission rates for developing possible rate discounts to encourage non-firm transmission usages to optimize the MTP investment recovery.read more
Citations
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Journal Article
Portfolio optimization with conditional value-at-risk objective and constraints
Proceedings ArticleDOI
Evaluation of investments made by GENCOs in transmission network development
TL;DR: In this paper, an economic investigation of transmission investment is carried out from the GENCO's perspective, where the profits of power sales in the network after development and revenues from investment cost recovery mechanisms and financial incentives are examined.
Posted Content
A Nash Approach to Planning Merchant Transmission for Renewable Resource Integration
TL;DR: In this article, a negotiation methodology is developed to guide transmission investment for renewable energy (RE) integration based on Nash bargaining theory, and the methodology models a negotiation between an RE generation company and a transmission company for the cost sharing and recovery of a new transmission line permitting delivery of RE to the grid.
DissertationDOI
Economic analysis for transmission operation and planning
TL;DR: In this article, a new short-term forecasting algorithm is proposed for predicting congestion, LMPs, and other power system variables based on the concept of system patterns, and a negotiation methodology is developed to guide transmission investment for integrating renewable energy.
References
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Posted Content
Transmission Rights and Market Power on Electric Power Networks. II: Physical Rights
Paul L. Joskow,Jean Tirole +1 more
TL;DR: In this paper, the authors examined whether and how the allocation of financial transmission rights affects the behavior of electricity generators and consumers with market power in the electricity market and concluded that the ultimate allocation of rights is endogenous, depending both on whether transmission rights can enhance market power and the microstructure of the rights market.
Book Chapter
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TL;DR: In this article, the authors present an in-depth analysis of network revenues computed with marginal pricing, and in particular they investigate the reasons why marginal prices fail to recover the total incurred network costs in actual power systems.
Journal ArticleDOI
Risk assessment in energy trading
TL;DR: In this paper, the authors provide a state-of-the-art summary of risk assessment in energy trading, including portfolio analysis and hedging instruments, and provide a comprehensive critical literature survey of what has been applied to date in the power markets.