Data Entry: Please note that the research database will be replaced by UNIverse by the end of October 2023. Please enter your data into the system https://universe-intern.unibas.ch. Thanks

Login for users with Unibas email account...

Login for registered users without Unibas email account...

 
Long-run Cost Functions for Electricity Transmission
JournalArticle (Originalarbeit in einer wissenschaftlichen Zeitschrift)
 
ID 1408507
Author(s) Rosellon, Juan; Vogelsang, Ingo; Weigt, Hannes
Author(s) at UniBasel Weigt, Hannes
Year 2012
Title Long-run Cost Functions for Electricity Transmission
Journal The energy journal
Volume 33
Number 1
Pages / Article-Number 131-160
Keywords Electricity transmission, Cost function, Incentive regulation, Merchant investment, Congestion management
Abstract

Electricity transmission has become the pivotal industry segment for electricity restructuring. Yet, little is known about the shape of transmission cost functions. Reasons for this can be a lack of consensus about the definition of transmission output and the complexitity of the relationship between optimal grid expansion and output expansion. Knowledge of transmission cost functions could help firms (Transcos) and regulators plan transmission expansion and could help design regulatory incentive mechanisms. We explore transmission cost functions when the transmission output is defined as point-to-point transactions or financial transmission right (FTR) obligations and particularly explore expansion under loop-flows. We test the behavior of FTR-based cost functions for distinct network topologies and find evidence that cost functions defined as FTR outputs are piece-wise differentiable and that they contain sections with negative marginal costs. Simulations, however, illustrate that such unusual properties do not stand in the way of applying price-cap incentive mechanisms to real-world transmission expansion. doi: 10.5547/ISSN0195-6574-EJ-Vol33-No1-5

Publisher Oelgeschlager
ISSN/ISBN 0195-6574
edoc-URL http://edoc.unibas.ch/dok/A6043659
Full Text on edoc No
Digital Object Identifier DOI 10.5547/ISSN0195-6574-EJ-Vol33-No1-5
ISI-Number WOS:000298868300005
Document type (ISI) Article
 
   

MCSS v5.8 PRO. 0.319 sec, queries - 0.000 sec ©Universität Basel  |  Impressum   |    
19/04/2024