Motivating the optimal procurement and deployment of electric storage as a transmission asset

David Brown and David Sappington

Energy Policy, 2020, vol. 138, issue C

Abstract: We consider the optimal choice between two means of relieving congestion in an electricity network: (1) traditional expansion of transmission capacity; and (2) storage as a transmission asset (SATA). We do so in an environment where the electric utility has privileged knowledge of both the cost of implementing SATA and the likelihood of local network congestion. The optimal policy differs considerably from policies under active consideration, in part by paying the utility relatively little for implementing SATA. Despite the relatively limited compensation, the utility secures rent from its privileged knowledge, particularly its knowledge of SATA implementation costs.

Keywords: Storage as a transmission asset; Electricity network congestion; Regulation (search for similar items in EconPapers)
JEL-codes: L51 L94 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421519307864
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Motivating the Optimal Procurement and Deployment of Electric Storage as a Transmission Asset (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:138:y:2020:i:c:s0301421519307864

DOI: 10.1016/j.enpol.2019.111202

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().