Transmission Rights and Market Power on Electric Power Networks

Transmission Rights and Market Power

Historically, the primary barrier to greater competition in the electricity industry has been the vertical integration of most firms. Control of the transmission grid can advantage some competitors at the expense of others. In electricity markets around the world, policymakers have attempted to solve this problem through the creation of independent ‘gridcos’ or ‘system operators’ that either ow...

PWP - 062 Transmission Rights and Market Power

How 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...

How Financial Transmission Rights Curb Market Power How Financial Transmission Rights Curb Market Power † Lbnl and Ucei Executive Summary

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...

Supervisory Control of Electric Power Transmission Networks

The methodology of discrete-event systems (DESs) and supervisory control is applied to a line-restoration problem, aiming to increase the steady-state security level of a power network during restoration. An example using the IEEE 14-bus system serves to demonstrate the potential of the DES formulation in the control of power networks, and to introduce the basic tools and techniques that this f...