Dynamics of Transmission Provision in a Competitive PowerIndustry
Discrete Event Dynamic Systems
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This paper provides a baste theoretical formulation of apeak-load pricing for transmission access charge. The costof investment is explicitly taken into account in the objectivefunction, to model the trade-off between network expansionand use of inexpensive generation.This approach introduces incentives for network expansionat the locations most beneficial to the customers. In awell-defined open access environment, charactering by a single transmission service to all, this approach could become useful for setting transmission reservation right tariffs over various time horizons. Such tariffs are performance-based, in the sense that the transmission paths most useful to the economic transactions receive the highest compensation.