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Improving Efficiency: Flexible Network Access Regime and Auction for Allocation of Network Capacity

In: Electricity Distribution Networks in the Decentralisation Era

Author

Listed:
  • Rahmatallah Poudineh

    (Oxford Institute for Energy Studies)

  • Christine Brandstätt

    (Oxford Institute for Energy Studies
    Copenhagen Business School)

  • Farhad Billimoria

    (Oxford Institute for Energy Studies
    University of Oxford)

Abstract

This chapter looks at the efficient allocation of access to existing and future grid capacity. The analysis departs from the concept of restricted rather than universal network access and introduces options of assigning access rights via auctions against offering them at regulated prices. It connects recent developments towards selectively restricting access rights as well as increasingly common practices of network operators buying back access rights from users by compensating them for access restrictions. Schemes that distinguish between different dimensions of access, rather than correcting the initial allocation are the consequential next step towards a net-zero-carbon future. Efficient approaches for the assignment of access enable the system operator to alleviate existing constraints and help to avoid grid expansion in situations where coordination mechanisms can manage the grid.

Suggested Citation

  • Rahmatallah Poudineh & Christine Brandstätt & Farhad Billimoria, 2022. "Improving Efficiency: Flexible Network Access Regime and Auction for Allocation of Network Capacity," Springer Books, in: Electricity Distribution Networks in the Decentralisation Era, chapter 0, pages 61-77, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-98069-6_5
    DOI: 10.1007/978-3-030-98069-6_5
    as

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