A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges
This paper presents a comprehensive design of electricity transmission charges that are meant to recover regulated network costs. In addition, these charges must be able to meet a set of inter-related objectives. Most importantly, they should encourage potential network users to internalize transmis...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | en_US |
| Published: |
MIT Center for Energy and Environmental Policy Research
2010
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| Online Access: | http://hdl.handle.net/1721.1/51708 |
| _version_ | 1826189433445023744 |
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| author | Pérez-Arriaga, Ignacio J. Olmos, Luis |
| author_facet | Pérez-Arriaga, Ignacio J. Olmos, Luis |
| author_sort | Pérez-Arriaga, Ignacio J. |
| collection | MIT |
| description | This paper presents a comprehensive design of electricity transmission charges that are meant to recover regulated network costs. In addition, these charges must be able to meet a set of inter-related objectives. Most importantly, they should encourage potential network users to internalize transmission costs in their location decisions, while interfering as least as possible with the short-term behaviour of the agents in the power system, since this should be left to regulatory instruments in the operation time range. The paper also addresses all those implementation issues that are essential for the sound design of a system of transmission network charges: stability and predictability of the charges; fair and efficient split between generation and demand charges; temporary measures to account for the low loading of most new lines; number and definition of the scenarios to be employed for the calculation and format of the final charges to be adopted: capacity, energy or per customer charges. The application of the proposed method is illustrated with a realistic numerical example that is based on a single scenario of the 2006 winter peak in the Spanish power system. |
| first_indexed | 2024-09-23T08:14:36Z |
| format | Working Paper |
| id | mit-1721.1/51708 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T08:14:36Z |
| publishDate | 2010 |
| publisher | MIT Center for Energy and Environmental Policy Research |
| record_format | dspace |
| spelling | mit-1721.1/517082019-04-09T17:33:02Z A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges Pérez-Arriaga, Ignacio J. Olmos, Luis This paper presents a comprehensive design of electricity transmission charges that are meant to recover regulated network costs. In addition, these charges must be able to meet a set of inter-related objectives. Most importantly, they should encourage potential network users to internalize transmission costs in their location decisions, while interfering as least as possible with the short-term behaviour of the agents in the power system, since this should be left to regulatory instruments in the operation time range. The paper also addresses all those implementation issues that are essential for the sound design of a system of transmission network charges: stability and predictability of the charges; fair and efficient split between generation and demand charges; temporary measures to account for the low loading of most new lines; number and definition of the scenarios to be employed for the calculation and format of the final charges to be adopted: capacity, energy or per customer charges. The application of the proposed method is illustrated with a realistic numerical example that is based on a single scenario of the 2006 winter peak in the Spanish power system. Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research and the Spanish energy regulatory commission (CNE) 2010-02-11T16:54:29Z 2010-02-11T16:54:29Z 2009-07 Working Paper 2009-010 http://hdl.handle.net/1721.1/51708 en_US MIT-CEEPR (Series);2009-010 application/pdf MIT Center for Energy and Environmental Policy Research |
| spellingShingle | Pérez-Arriaga, Ignacio J. Olmos, Luis A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges |
| title | A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges |
| title_full | A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges |
| title_fullStr | A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges |
| title_full_unstemmed | A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges |
| title_short | A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges |
| title_sort | comprehensive approach for computation and implementation of efficient electricity transmission network charges |
| url | http://hdl.handle.net/1721.1/51708 |
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