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Transmission Management and Pricing

In: Handbook Utility Management

Author

Listed:
  • Christoph Riechmann

    (Frontier Economics Ltd.)

  • Dan Roberts

    (Frontier Economics Ltd.)

Abstract

Transmission system operators (TSOs) face new operational challenges: they need to integrate new generation, such as intermittent wind and embedded generation. They are also expected to enhance interconnectivity with neighbouring operators and countries. TSOs need to optimise their strategies subject to regulatory and market constraints and ensure system reliability while also improving operating and investment efficiency. TSOs which are vertically bundled with generation face a further challenge of vertical separation (unbundling). Their interaction with stakeholders, such as generators, traders and retail suppliers, has to evolve into a market-based or regulated coordination. In this chapter we outline the tasks of TSOs; the operating environment and key value drivers of transmission operation; possible management actions and tools to inform management decisions; possible organisational responses; and implications for the pricing of transmission services.

Suggested Citation

  • Christoph Riechmann & Dan Roberts, 2008. "Transmission Management and Pricing," Springer Books, in: Andreas Bausch & Burkhard Schwenker (ed.), Handbook Utility Management, chapter 27, pages 457-476, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-79349-6_27
    DOI: 10.1007/978-3-540-79349-6_27
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