Electricity Transmission

Rivier, Michel; Pérez-Arriaga, Ignacio J.; Olmos, Luis

doi:10.1007/978-1-4471-5034-3_6

Cited by 8 publications

(7 citation statements)

References 38 publications

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“…It is well known that conditions applying to the electricity transmission activity make it a natural monopoly able to affect the market benefits of agents and the social benefit of the system (Rivier et al 2013). Then, a single network should exist over the whole system, or region, considered, and its development should be largely managed centrally by a fully unbundled entity, or a group of them, working in close cooperation while preserving the functioning of the system.…”

Section: Mainstream Institutional Design Of the Development Of The Grmentioning

confidence: 99%

“…Instead, this scheme should set some incentives driving the TSO to carry out the network expansion planning, network construction, operation, and maintenance activities efficiently. Thus, the remuneration perceived by the TSO corresponding to a certain regulatory period, should reflect the costs incurred in developing, operating and maintaining an efficiently adapted grid, while taking into account the conditions applying to the system and the network at the beginning of this period (Rivier et al 2013).…”

Section: Remuneration Of Network Investmentsmentioning

confidence: 99%

“…conditions should be set to determine when applying a negotiated access regime is advisable in order to avoid the market foreclosure for some agents (Rivier et al 2013).…”

Section: Remuneration Of Network Investmentsmentioning

confidence: 99%

“…Given that these benefits are difficult to estimate, one may conclude, adopting a conservative view, that no regulated network investment should be approved unless the net benefits it creates, including the negative ones, exceed the costs associated with this investment. Similarly, network investments at risk should only be approved if the net operational benefits that they create, excluding those perceived by the private promoter, are positive (Rivier et al 2013).…”

Section: Treatment Of Negative Benefits In the Computation Of The Reimentioning

confidence: 99%

“…Then, the benefits produced by reinforcements should be the drivers of the development of the grid in a region (De Clercq et al 2015). Since the benefits derived from network investments are the main reason for undertaking them (Rivier et al 2013), the cost of regulated investments may be allocated to network users proportionally to the benefits they are expected to produce (Hogan 2018;Olmos and Pérez-Arriaga 2009;Báñez et al 2017). Charging network users the fraction of the grid costs they are responsible for should result in efficient grid charges.…”

mentioning

confidence: 99%

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Transmission Expansion Benefits: The Key to Redesigning the Regulation of Electricity Transmission in a Regional Context

Olmos¹,

Rivier²,

Pérez-Arriaga³

2018

EEEP

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Achieving a sufficient and efficient development of the transmission grid in the new low-carbon and region-wide coordinated electricity markets being created will be central to their success. This requires setting up the required institutional framework and cost allocation arrangements, which is specially challenging when the relevant market covers several independent countries or administrative areas (like states or provinces). The features of the set of institutions to have in place and the interactions among them, as well as the network cost allocation arrangements implemented, are critical issues to ensure an efficient and sufficient development of the grid. This paper addresses those issues and argues that they should be defined with the aim to properly take into account the benefits to be produced by network reinforcements, since these are driven by the benefits they produce. This article discusses how the expected benefits of transmission network expansion projects should affect the organization of the expansion of the grid, the expansion planning algorithms applied and the allocation of the cost of network reinforcements. After discussing the definition of the principles to be applied to these activities in an integrated system, the implications of these in a regional, or multi-system, context are provided.

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Section: Mainstream Institutional Design Of the Development Of The Grmentioning

confidence: 99%

Section: Remuneration Of Network Investmentsmentioning

confidence: 99%

“…conditions should be set to determine when applying a negotiated access regime is advisable in order to avoid the market foreclosure for some agents (Rivier et al 2013).…”

Section: Remuneration Of Network Investmentsmentioning

confidence: 99%

Section: Treatment Of Negative Benefits In the Computation Of The Reimentioning

confidence: 99%

mentioning

confidence: 99%

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