Transmission network price setting model for the promotion of liberalized market for the power industry in Taiwan

Po-Han Chen and Ing-Sheng Tsay

Energy Policy, 2017, vol. 104, issue C, 100-111

Abstract: Currently, privatized state-owned Taiwan Power Company (Taipower) has a monopoly over energy production and vertically integrates the electricity market in Taiwan. Because of the geographical environments, economies of scales, social structures, and diverse political ideologies in Taiwan, the electricity market exhibits unique characteristics. To maximize the benefits of electricity liberalization, future market operations must not only involve conventional considerations for economic dispatch; overall social welfare should be included by incorporating the perspectives of fairness, responsibility, and the environment, and key electrical grid operations should be executed appropriately. We responded to the future market liberalization planning by including factors, such as, environmental effects and government policies, in addition to electrical line construction, and operation cost factors involved in the entire operational model planning. On the basis of responsibility sharing, this study used the simulated-responsibility three-phase pricing method. The proposed pricing method is expected to help attain the following policy goals:

Keywords: Electricity liberalization; Transmission price; Responsibility sharing; Simulated-responsibility three-phase pricing method (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:104:y:2017:i:c:p:100-111

DOI: 10.1016/j.enpol.2017.01.040

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