کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
399273 | 1438727 | 2015 | 10 صفحه PDF | دانلود رایگان |
• The effect of ITC mechanism on cross-border electricity transmission investments.
• An investment model that includes ITC in a multi-TSO setting introduced.
• There is a loose link between ITC and cross-border transmission investments.
• The link can be tightened by increasing the size of the ITC fund.
• High ITC fund size can lead to under-investment.
An efficient cross-border investment and well-designed markets and regulatory instruments are crucial prerequisites to the creation of a fully functional European internal electricity market. One of the prominent regulatory measures taken to speed up the creation of the internal market was to abolish tariff pancaking by replacing cross-border tariffs with an Inter-Transmission System Operators Compensation (ITC) mechanism through which transmission system operators (TSOs) can compensate each other. In this study, the implication of introducing such mechanism on the cross-border investment outcome is explored. The results indicate that the current ITC mechanism is loosely linked to the cross-border investment decisions of TSOs. In addition, the study concludes that factors such as the ITC fund size and the number of participating TSOs can influence the investment outcome.
Journal: International Journal of Electrical Power & Energy Systems - Volume 73, December 2015, Pages 674–683