Improving Efficiency: Flexible Network Access Regime and Auction for Allocation of Network Capacity

Rahmatallah Poudineh (), Christine Brandstätt () and Farhad Billimoria ()
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Rahmatallah Poudineh: Oxford Institute for Energy Studies
Christine Brandstätt: Oxford Institute for Energy Studies
Farhad Billimoria: Oxford Institute for Energy Studies

Chapter Chapter 5 in Electricity Distribution Networks in the Decentralisation Era, 2022, pp 61-77 from Springer

Abstract: Abstract This chapter looks at the efficient allocation of access to existing and future grid capacity. The analysis departs from the concept of restricted rather than universal network access and introduces options of assigning access rights via auctions against offering them at regulated prices. It connects recent developments towards selectively restricting access rights as well as increasingly common practices of network operators buying back access rights from users by compensating them for access restrictions. Schemes that distinguish between different dimensions of access, rather than correcting the initial allocation are the consequential next step towards a net-zero-carbon future. Efficient approaches for the assignment of access enable the system operator to alleviate existing constraints and help to avoid grid expansion in situations where coordination mechanisms can manage the grid.

Keywords: Network access regime; Flexible network access; Auction for network capacity (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-98069-6_5

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DOI: 10.1007/978-3-030-98069-6_5

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