Financial transmission rights (FTR) auction is an important method for allocating the network transmission capabilities to the market participants who value them most. In this letter, series flexible ac transmission systems (FACTS) devices are modeled as additional power injection at buses in the presented linear optimization problem of FTR auction, which is based on a dc power flow model. The ...

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...

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...

With the ongoing expansion and growth of electric power industry, the use of power flow controllers is becoming more prevalent in modern power systems. The needs for system enhancement trigger the advancement of FACTS technology which offers superior features in increasing system stability and performance. Devices like TCSC can reduce line reactance significantly and thus enhance the maximum po...

In vein with the new energy market rules drafted in the EU this paper presents and discusses two contract types for hedging the risks connected to long-term transmission rights, the financial transmission right (FTR) and the electricity price area differentials (EPAD) that are used in the Nordic electricity markets. The possibility to replicate the FTR contracts with a combination of EPAD contr...

This paper explores the allocation process of Financial Transmission Rights (FTRs) in Italian electricity market. FTRs are financial instruments allowing market participants to hedge against transmission congestion, also playing a critical role ensuring efficient use system. We present linear programming (LP) model that simulates process, taking into account capacity limits electric network whe...

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 hel...

Shmuel S. Oren University of California at Berkeley 4119 Etcheverry Hall, Berkeley, CA 94720 [email protected] www.ieor.berkeley.edu/~oren Summary This note comments on the section concerning the definition of transmission rights in FERC’s working paper on Standardized Transmission Service and Wholesale Electric Market Design. The comments below endorse the following positions 1. Support F...

Improvement and expansion of the transmission grid is still an unresolved issue in the new competitive environment. In current electricity markets, transmission lines have become assets that need financial instruments for investors who wish to ensure steady long-term returns and to withstand short-term market volatility. The timing and the combination of new transmission investments is key to a...