A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges
Luis Olmos and
Ignacio J. Pérez-Arriaga
Working Papers from Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research
This paper presents a comprehensive design of electricity transmission charges that are meant to recover regulated network costs. In addition, these charges must be able to meet a set of inter-related objectives. Most importantly, they should encourage potential network users to internalize transmission costs in their location decisions, while interfering as least as possible with the short-term behaviour of the agents in the power system, since this should be left to regulatory instruments in the operation time range. The paper also addresses all those implementation issues that are essential for the sound design of a system of transmission network charges: stability and predictability of the charges; fair and efficient split between generation and demand charges; temporary measures to account for the low loading of most new lines; number and definition of the scenarios to be employed for the calculation and format of the final charges to be adopted: capacity, energy or per customer charges. The application of the proposed method is illustrated with a realistic numerical example that is based on a single scenario of the 2006 winter peak in the Spanish power system.
New Economics Papers: this item is included in nep-ene and nep-net
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to tisiphone.mit.edu:80 (No such host is known. )
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mee:wpaper:0910
Access Statistics for this paper
More papers in Working Papers from Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research Contact information at EDIRC.
Bibliographic data for series maintained by Sharmila Ganguly ( this e-mail address is bad, please contact ).