Price Formation in Auctions for Financial Transmission Rights
نویسندگان
چکیده
منابع مشابه
The inherent inefficiency of simultaneously feasible financial transmission rights auctions
Empirical evidence shows that the clearing prices for point-to-point congestion revenue rights, also known as financial transmission rights (FTRs), resulting from centralized auctions conducted by Independent System Operators differ significantly and systematically from the realized congestion revenues that determine the accrued payoffs of these rights. The question addressed by this paper is w...
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This paper surveys the markets for financial transmission rights (FTRs) around the world. FTRs are used to hedge the costs associated with transmission congestion. Currently these rights are in use in PJM, New York and New England. A variant of financial transmission rights, which has both a physical and a financial aspect, was introduced in California in 2000. Similarly, flowgates were introdu...
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We develop a model of information processing and strategy choice for participants in a double auction. Sellers in this model form beliefs that an offer will be accepted by some buyer. Similarly, buyers form beliefs that a bid will be accepted. These beliefs are formed on the basis of observed market data, including frequencies of asks, bids, accepted asks, and accepted bids. Then traders choose...
متن کاملOptimum Proposal of Various Financial Rights in Secondary Short-Period Auction Market of Transmission Rights for Congestion Risk Management
Congestion Risk Management is one of the most important subjects of Transmission management in deregulated power system and world electricity market, especially markets of zonal or local pricing in which Firm Transmission Rights (in other words Financial Transmission Rights) are the main elements. In this study, considering subjects of Financial Rights of Transmission Congestion, methods of opt...
متن کاملHow Financial Transmission Rights Curb Market Power
This paper demonstrates that financial transmission rights allow their owners to capture at least a portion, and sometimes all, of the congestion rents. This extends work in this area by Shmuel Oren which was limited to the case in which generators could not purchase financial transmission rights. One form of financial rights, Transmission Congestion Contracts (TCCs), is shown to be so effectiv...
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ژورنال
عنوان ژورنال: The Energy Journal
سال: 2022
ISSN: 0195-6574
DOI: 10.5547/01956574.43.3.jopg