El modelo HRV para expansión óptima de redes de transmisión: aplicaciones en Ontario

Juan Rosellon, Juan Tregear and Eric Zenón

No DTE 493, Working Papers from CIDE, División de Economía

Abstract: This paper presents an application of a mechanism that provides incentives to promote transmission network expansion in the electricity system of the Ontario province. Such a mechanism combines a merchant approach with a regulatory approach. It is based on the rebalancing of a two-part tariff within the framework of a wholesale electricity market with nodal pricing. The expansion of the network is carried out through auctions of financial transmission rights for congested links. The mechanism is tested for a simplified transmission grid with ten interconnected zones, ten nodes, eleven lines and seventy eight generators in the Ontario province. The simulation is carried out for both peak and non-peak scenarios. Considering Laspeyres weights, the results show that that prices converge to the marginal cost of generation, the congestion rent decreases, and the total social welfare increases.

Keywords: Electricity; two-part tariff; financial transmission (search for similar items in EconPapers)
JEL-codes: L94 R38 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2010-05
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