IDEAS home Printed from https://ideas.repec.org/p/cam/camdae/2335.html
   My bibliography  Save this paper

Regulation of access, fees, and investment planning of transmission in Great Britain

Author

Listed:
  • Newbery, D.

Abstract

Liberalized electricity markets require unbundling transmission from generation. For least system cost, generation needs to locate to minimize generation and transmission investment and operation cost. Britain offers a good example of the challenges of and responses to setting transmission access fees to guide the location of massive renewables entry, very differently located to old fossil plants for which the grid was designed. Over-rewarding renewables pre-2014 worked strongly against these location signals, amplifying congestion. Proposals to coordinate transmission and generation off-shore show considerable benefits but coordination needs to be extended on-shore. Partial Locational Marginal Pricing (LMP in the realtime market might deliver less than full LMP but at much lower cost. Modest changes to transmission and auctioned renewables contracts could deliver quick coordination benefits independent of LMP.

Suggested Citation

  • Newbery, D., 2023. "Regulation of access, fees, and investment planning of transmission in Great Britain," Cambridge Working Papers in Economics 2335, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:2335
    Note: dmgn
    as

    Download full text from publisher

    File URL: https://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe2335.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Newbery, David M., 1997. "Determining the regulatory asset base for utility price regulation," Utilities Policy, Elsevier, vol. 6(1), pages 1-8, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Newbery, David M. & Biggar, Darryl R., 2024. "Marginal curtailment of wind and solar PV: Transmission constraints, pricing and access regimes for efficient investment," Energy Policy, Elsevier, vol. 191(C).
    2. Paul Simshauser, 2023. "The regulation of electricity transmission in Australia's national electricity market: user charges, investment and access," Working Papers EPRG2311, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Biggar, Darryl, 2022. "Seven outstanding issues in energy network regulation," Energy Economics, Elsevier, vol. 115(C).
    2. Galetovic, Alexander & Mueller, Bernardo, 2002. "Comments," LSE Research Online Documents on Economics 123202, London School of Economics and Political Science, LSE Library.
    3. Parker, David, 2001. "Economic Regulation: A Preliminary Literature Review and Summary of Research Questions Arising," Centre on Regulation and Competition (CRC) Working papers 30616, University of Manchester, Institute for Development Policy and Management (IDPM).
    4. Adwoa Asantewaa & Tooraj Jamasb & Manuel Llorca, 2022. "Electricity Sector Reform Performance in Sub-Saharan Africa: A Parametric Distance Function Approach," Energies, MDPI, vol. 15(6), pages 1-29, March.
    5. David Newbery, 2002. "Issues and options for restructuring electricity supply industries," Working Papers EP01, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    6. David Newbery, 2023. "Regulation of access, fees, and investment planning of transmission in Great Britain," Working Papers EPRG2307, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    7. Massarutto, Antonio & Pontoni, Federico, 2015. "Rent seizing and environmental concerns: A parametric valuation of the Italian hydropower sector," Energy Policy, Elsevier, vol. 78(C), pages 31-40.
    8. Marques, Rui Cunha, 2021. "Public interest and early termination of PPP contracts. Can fair and reasonable compensations be determined?," Utilities Policy, Elsevier, vol. 73(C).

    More about this item

    Keywords

    transmission fees; regulation; off-shore wind; LMP;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cam:camdae:2335. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jake Dyer (email available below). General contact details of provider: https://www.econ.cam.ac.uk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.