Using Market Simulations for Economic Assessment of Transmission Upgrades: Application of the California ISO Approach

Zhang, Xiaoping

doi:10.1002/9780470608555.ch7

Cited by 20 publications

(8 citation statements)

References 22 publications

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“…The CBA methodology developed by CAISO, the Transmission Economic Assessment Methodology (TEAM) [24], and its updated version [25], define and quantify the benefits of reinforcements for producers, consumers, and transmission owners, and social aspects in detail [24]. The quantification of the local environmental benefits in this scheme are based on the tons of NO x reduction per year achieved by each transmission project and the average allowance price, for the same years, of the CAISO NO x allowance market [26]. However, assigning a uniform value to the local air pollutants, NO x and SO 2 , across the whole region ignores the heterogeneous dispersion of the pollutants and does not capture their source-specific characteristics.…”

Section: Current Trends In Power Systemmentioning

confidence: 99%

Considering Local Air Pollution in the Benefit Assessment and Cost Allocation of Cross Border Transmission Projects

2020

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Developing a regional power system to achieve a high level of integration of national systems requires sufficient development of the regional transmission grid. This is possible only with appropriate schemes for the complete cost-benefit analyses, and cost allocation of these transmission investments, which plays a critical role in the selection of the most efficient network investment and the proper assignment of their cost to the national systems. Network reinforcements affect the operation of power systems and, therefore, the externalities of power generation. This paper examines the impacts of integrating local air pollution damage from power production within the benefit assessment and cost allocation of transmission investments. The paper describes the methodology followed and illustrates its application in a real-life case study where a simplified version of a European network is considered. Within this case study, we have assessed the impact of considering the reduction in air pollution damage achieved through a particular HVDC project between France and Spain on the benefits, and benefit-driven cost allocation, computed for this project. In this case study, local pollution related benefits are a relevant fraction of the overall benefits of the considered transmission project. However, considering the local air pollution benefits of the project does not affect the net positive benefits of each country significantly, resulting in a limited change in the cost allocation of the project.Energies 2020, 13, 1426 2 of 20 increases and cost decreases in the last decade. The total wind capacity reached 591 GW with the additional 51.3 GW installed at a global level at the end of 2018 [4]. RES-based generation capacity is expected to grow steadily in the future. However, renewable generation investments are not expected to take place close to large demand locations. These investments are typically located in remote areas where the wind or solar radiation potential is higher. The power generation in those areas will be needed to be transferred across borders, over long distances. Then, the current network will be insufficient to transfer this cheap, excess energy from those areas to the main load centers. This will create the need to undertake large investments in the power grid along with the generation expansion. European Network of Transmission System Operators for Electricity (ENTSO-E) expects approximately €114 billion of transmission and storage investments by 2030 [5].

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Section: Current Trends In Power Systemmentioning

confidence: 99%

Considering Local Air Pollution in the Benefit Assessment and Cost Allocation of Cross Border Transmission Projects

2020

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“…El objetivo es determinar los parámetros estructurales del mercado de contratos para clientes bajo regulación de precios, utilizando regresiones econométricas con datos históricos de las licitaciones llevadas a cabo entre los años 2006 y 2014. Es interesante indicar que el uso de información histórica del mercado eléctrico para proyectar escenarios de precios ante cambios en la infraestructura de transmisión se basa en el espíritu de la metodología TEAM (Awad et al [17]). La siguiente especificación econométrica está diseñada para estimar el margen sobre precios competitivos (Índice de Lerner), utilizando información de las ofertas llevadas a cabo.…”

Section: Metodologiaunclassified

Economic effects of Transmission Expansions: The case of the Regulated Contract Market in Chile

Bustos

Fuentes

2016

IEEE Latin Am. Trans.

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“…Spain is an exception, using a methodology with similarities to the CAISO TEAM approach [2]. The EU ten-year plan is supposed to consider multiple scenarios as well.…”

Section: A Within Marketsmentioning

confidence: 99%

Transmission planning and pricing for renewables: Lessons from elsewhere

Hobbs

2012

2012 IEEE Power and Energy Society General Meeting

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Using Market Simulations for Economic Assessment of Transmission Upgrades: Application of the California ISO Approach

Cited by 20 publications

References 22 publications

Considering Local Air Pollution in the Benefit Assessment and Cost Allocation of Cross Border Transmission Projects

Considering Local Air Pollution in the Benefit Assessment and Cost Allocation of Cross Border Transmission Projects

Economic effects of Transmission Expansions: The case of the Regulated Contract Market in Chile

Transmission planning and pricing for renewables: Lessons from elsewhere

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