The role of transmission investment in the coordination between generation and transmission in the liberalized power systems

Vincent Rious, Glachant, Jean-Michel, Yannick Perez and Philippe Dessante
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Vincent Rious: SUPELEC-Campus Gif - SUPELEC
Glachant, Jean-Michel: LdP - Loyola de Palacio Programme - European University Institute
Yannick Perez: LdP - Loyola de Palacio Programme - European University Institute
Philippe Dessante: SUPELEC-Campus Gif - SUPELEC

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Abstract: This paper examines how transmission coordinates with generation to the long term in a liberalized power system. We rely on a modular analysis to separate the mechanisms of coordination between generation and transmission of electricity into distinct modules. The governance structure of transmission completes this analysis framework. We then show that in a logic of complementarity, this governance structure influences the options that TSO implements to manage effectively power flows. Although locational signals are necessary to guide the installation of new power plants, the governance structure explains that investment in network may be the only effective method of longterm coordination between generation and transmission.

New Economics Papers: this item is included in nep-ene
Date: 2009-06-20
Note: View the original document on HAL open archive server: http://hal-supelec.archives-ouvertes.fr/hal-00429034/en/

Published - Presented, 13th Annual Conference of The International Society for New Institutional Economics at the University of California at Berkeley,Walter A. Haas School of Business, 2009, Berkeley, United States

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