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Expansión de las Redes de Transmisión Eléctrica en Norteamérica: Teoría y Aplicaciones
[The Expansion of Electricity Networks in North America: Theory and Applications]

Author

Listed:
  • Zenon, Eric
  • Rosellon, Juan

Abstract

We present a hybrid mechanism application for the electrical system network expansion in Mexico, United States and Canada. The application is based on redefining the transmission output in terms of "point-to-point" transactions or financial transmission rights (FTRs); rebalancing the fixed and variable parts of a two-part tariff; as well as in the use of nodal pricing. The expansion of the transmission is carried out through the sale of FTRs for the congested electrical lines. The mechanism was tested in the national electric system of Mexico (SEN) with 24 nodes and 35 power line, in the Pennsylvania-New Jersey-Maryland (PJM) grid with 17 nodes and 31 lines, and finally in the Ontario network with 10 nodes and 10 lines. The results thereof indicate that prices converge to the marginal generation cost, congestion decreases and the social benefit increases in the three systems, regardless of the organization of the electrical system, the network topology or the type of installed generation capacity

Suggested Citation

  • Zenon, Eric & Rosellon, Juan, 2010. "Expansión de las Redes de Transmisión Eléctrica en Norteamérica: Teoría y Aplicaciones [The Expansion of Electricity Networks in North America: Theory and Applications]," MPRA Paper 26470, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:26470
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    References listed on IDEAS

    as
    1. Gilbert,Richard J. & Kahn,Edward P. (ed.), 1996. "International Comparisons of Electricity Regulation," Cambridge Books, Cambridge University Press, number 9780521495905, October.
    2. Juan Rosellón & Hannes Weigt, 2011. "A Dynamic Incentive Mechanism for Transmission Expansion in Electricity Networks: Theory, Modeling, and Application," The Energy Journal, , vol. 32(1), pages 119-148, January.
    3. Rosellón Juan, 2003. "Different Approaches Towards Electricity Transmission Expansion," Review of Network Economics, De Gruyter, vol. 2(3), pages 1-32, September.
    4. Thomas-Olivier Leautier, 2000. "Regulation of an Electric Power Transmission Company," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 61-92.
    5. Vogelsang, Ingo, 2001. "Price Regulation for Independent Transmission Companies," Journal of Regulatory Economics, Springer, vol. 20(2), pages 141-165, September.
    6. Rosellon, Juan, 2007. "An incentive mechanism for electricity transmission expansion in Mexico," Energy Policy, Elsevier, vol. 35(5), pages 3003-3014, May.
    7. Joskow, Paul L., 2005. "Transmission policy in the United States," Utilities Policy, Elsevier, vol. 13(2), pages 95-115, June.
    8. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, April.
    9. Kristiansen, T. & Rosellón, J., 2010. "Merchant electricity transmission expansion: A European case study," Energy, Elsevier, vol. 35(10), pages 4107-4115.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Electricity transmission; financial transmission rights (FTRs); incentive regulation; loop-flow problem; nodal prices;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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