El modelo HRV para expansión óptima de redes de transmisión: una aplicación a la red eléctrica de Ontario

Rosellon, Juan and Tregear, Juan and Zenon, Eric (2010): El modelo HRV para expansión óptima de redes de transmisión: una aplicación a la red eléctrica de Ontario.

Abstract

This paper presents an application of a mechanism that provides incentives to promote transmission network expansion in the electricity system of the Ontario province. Such a mechanism combines a merchant approach with a regulatory approach. It is based on the rebalancing of a two-part tariff within the framework of a wholesale electricity market with nodal pricing. The expansion of the network is carried out through auctions of financial transmission rights for congested links. The mechanism is tested for a simplified transmission grid with ten interconnected zones, ten nodes, eleven lines and seventy eight generators in the Ontario province. The simulation is carried out for both peak and non-peak scenarios. Considering Laspeyres weights, the results show that that prices converge to the marginal cost of generation, the congestion rent decreases, and the total social welfare increases.

• Item Type: MPRA Paper
• English Title: The HRV Model for the Optimal Expansion of Transmission Networks: an Application to the Ontario Electricity Grid
• Language: Spanish
• Keywords: Keywords: Electricity transmission, financial transmission rights (FTRs), incentive regulation, loop-flow problem, nodal prices, Ontario
• Subjects: L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L91 - Transportation: General; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q40 - General

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