Using cross country data, we explore the role of linguistic structures for financial development countries. Specially, investigate if future time reference (FTR), requirement an obligatory tense marking in languages, matters or not. Our results show that countries speaking weak FTR language a not needing dedicated have enhanced relative to strong language. Discounting less having connection bet...

Reactive power as a utility of ancillary service in restructured environment is supplied by Independent System Operator (ISO). Due to the particular importance of optimal pricing strategy in the power market, the study aims to investigate this problem more closely. To this end, first the problems of restructuring, reactive power generation and its associated costs thereof were reviewed and diff...

The paper presents concepts of Financial Transmission Rights (FTRs) and Storage (FSRs) as key market for alleviating congestion issues in transmission networks. These instruments are place markets where prices differ depending on the location/node due to congestions. They serve a tool system operators TSO (or independent operators; ISOs) eliminating congestions by remunerating entities who make...

In Part II of this two-part paper, we analyze the marginal prices derived in Part I of this two-part paper within a robust optimization framework. The load and generation are priced at Locational Marginal Price (LMP) while the uncertainty and generation reserve are priced at Uncertainty Marginal Price (UMP). The Financial Transmission Right (FTR) underfunding is demonstrated when there is trans...

This paper reviews both theoretical and empirical studies of financial transmission rights (FTRs) in the major U.S. wholesale power markets and provides a simple illustrative two-stage model to study the competitive behaviors of electricity generators (wholesale power sellers) and load serving entities (LSEs)(wholesale power buyers) and the welfare effects of FTRs in the restructuring U.S. whol...

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...

Traditionally, transmission assets for bulk power flow in the electric grid have been modeled as fixed assets in the short run, except during times of forced outages or maintenance. This traditional view does not permit reconfiguration of the transmission grid by the system operators to improve system performance and economic efficiency. The current push to create a smarter grid has brought to ...

A novel market mechanism is proposed to charge the uncertainty and credit the generation reserve in the Day-ahead market within a Robust Security-Constrained Unit Commitment (RSCUC) optimization framework. The increasing penetration of renewable energy in recent years has led to more uncertainties in power systems. These uncertainties have to be accommodated by flexible resources (i.e. upward a...

In this paper a property rights model for electric transmission is proposed and its properties analyzed. The proposed rights, called “border flow rights,” support financial hedging of transmission risk and merchant transmission expansion through associated financial rights, called “contracts for differences of differences.” These financial rights allow for forward trading of both energy and tra...

It is well known that the reserves/redundancies built into the transmission grid in order to address a variety of contingencies over a long planning horizon may, in the short run, cause economic dispatch inefficiency. Accordingly, power grid optimization by means of short term line switching has been proposed and is typically formulated as a mixed integer programming problem by treating the sta...