Merchant electricity transmission expansion: A European case study

Tarjei Kristiansen and Juan Rosellon

Energy, 2010, vol. 35, issue 10, 4107-4115

Abstract: We apply a merchant transmission model to the trilateral market coupling (TLC) arrangement among the Netherlands, Belgium and France as an example, and note that it could further be applied to other market splitting or coupling of Europe’s different national power markets. In this merchant framework the system operator allocates financial transmission rights (FTRs) to investors in transmission expansion based upon their preferences, and revenue adequacy. The independent system operator (ISO) preserves some proxy FTRs to manage potential negative externalities that may result from expansion projects. This scheme could help European market coupling arrangements attract additional investment.

Keywords: Transmission expansion; Trilateral market coupling; Europe; Financial transmission rights; Congestion management (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (18)

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Working Paper: Merchant Electricity Transmission Expansion: A European Case Study (2010)
Working Paper: Merchant Electricity Transmission Expansion: A European Case Study (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:35:y:2010:i:10:p:4107-4115

DOI: 10.1016/j.energy.2010.06.025

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