Transmission Network and Market Efficiency in the Electricity Sector

Federico Boffa

Economia dei Servizi, 2007, issue 2, 247-266

Abstract: This paper illustrates the essential role of the transmission network in achieving efficient electricity markets. An optimally managed network characterized by an adequate capacity level induces efficiency gains not only as it widens the potential market for the least costly plants, but also as it enlarges the set of competing suppliers for the end users, thereby generating a pro-competitive effect. Combining theoretical models and empirical applications, this paper characterizes the network optimal capacity and defines the properties of its "optimal " management. Finally, it evaluates the compatibility of the current Italian and European legal framework with the goal of efficiency maximization, meanwhile indicating a number of appropriate modifications.

Keywords: energy market; transmission network; interconnection; efficient investment; efficient utilization (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rivisteweb.it/download/article/10.2382/24374 (application/pdf)
https://www.rivisteweb.it/doi/10.2382/24374 (text/html)
Access to full text is restricted to subscribers

Related works:
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:mul:j1t56u:doi:10.2382/24374:y:2007:i:2:p:247-266

Access Statistics for this article

Economia dei Servizi is currently edited by Fabio Gobbo

More articles in Economia dei Servizi from Società editrice il Mulino
Bibliographic data for series maintained by ().