Expansión de las Redes de Transmisión Eléctrica en Norteamérica: Teoría y Aplicaciones

The Expansion of Electricity Networks in North America: Theory and Applications

Eric Zenon and Juan Rosellon

MPRA Paper from University Library of Munich, Germany

Abstract: We present a hybrid mechanism application for the electrical system network expansion in Mexico, United States and Canada. The application is based on redefining the transmission output in terms of "point-to-point" transactions or financial transmission rights (FTRs); rebalancing the fixed and variable parts of a two-part tariff; as well as in the use of nodal pricing. The expansion of the transmission is carried out through the sale of FTRs for the congested electrical lines. The mechanism was tested in the national electric system of Mexico (SEN) with 24 nodes and 35 power line, in the Pennsylvania-New Jersey-Maryland (PJM) grid with 17 nodes and 31 lines, and finally in the Ontario network with 10 nodes and 10 lines. The results thereof indicate that prices converge to the marginal generation cost, congestion decreases and the social benefit increases in the three systems, regardless of the organization of the electrical system, the network topology or the type of installed generation capacity

Keywords: Electricity transmission; financial transmission rights (FTRs); incentive regulation; loop-flow problem; nodal prices (search for similar items in EconPapers)
JEL-codes: L51 L91 L94 Q40 (search for similar items in EconPapers)
Date: 2010-08
New Economics Papers: this item is included in nep-ene and nep-reg
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Related works:
Working Paper: Expansión de las redes de transmisión eléctrica en Norteamérica: Teoría y aplicaciones (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:26470

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