Network expansion by a proactive transmission system operator: A case study

Angelamaria Groppi and Elena Fumagalli

Energy Policy, 2014, vol. 69, issue C, 610-623

Abstract: Complex planning procedures often amplify the difference in investment time between generation and transmission. In this work we consider a transmission project in Italy and, relying on a recently proposed methodology, we compare costs and benefits of anticipating the planning process before the connection of new power plants becomes certain. Whereas the system faces lower congestion costs if the network is reinforced immediately, anticipation constitutes a sunk cost in case generation is not built. For realistic load and generation scenarios, anticipation costs, as well as differences in investment times, our results indicate that anticipation is the most efficient choice for a relatively low connection probability. Analyses of this sort are particularly relevant in light of the increasing complexity of public engagement processes and of the remarkable growth in renewable generation.

Keywords: Transmission network; Investment planning; Anticipation (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:69:y:2014:i:c:p:610-623

DOI: 10.1016/j.enpol.2014.03.002

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