Participation of generating companies in transmission investment in electricity markets

Karimi, Maziar; Pirayesh, Abolfazl; Kheradmandi, Morteza

doi:10.1049/iet-gtd.2017.0413

Cited by 5 publications

(6 citation statements)

References 25 publications

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“…The probability of a plan being delayed beyond one stage is assumed to be negligible. The detailed description of the generated scenario tree and scenario‐based decision making is found in [17, 22], respectively.…”

Section: Investment Structurementioning

confidence: 99%

“…It is assumed that the expansion planning studies are performed prior to the investment problem by the TSO. The selected transmission expansion plan is taken from [17].…”

Section: Case Studymentioning

confidence: 99%

“…where (16) and (17) represent the active and reactive power balance over system buses, respectively; (18) represents the constraint of transmission line capacity, and (19) represents the voltage constraints for buses. The maximum and minimum active and reactive powers are given in (20) and (21), respectively; and the limit that the curtailed load is bound to the value of load connected to the bus is expressed in (22).…”

Section: Clearing Model For Electricity Marketmentioning

confidence: 99%

“…The method of artificial generations with high marginal costs is used in this paper to obtain the number of loads which should be curtailed at load buses [26]. The active and reactive powers through transmission line l, P l, t, s and Q l, t, s , appearing in (16) and (17), respectively, are obtained as follows:…”

Section: Clearing Model For Electricity Marketmentioning

confidence: 99%

“…In [17], a structure is presented to engage the GenCos in transmission investment under a design–build–finance (DBF) agreement, in which the ownership of the transmission project remains under the control of the regulated transmission service provider (TSP), and the TSPs redeem the cost through a repayment schedule. This is in contrast to the merchant investment, in which the ownership is retained intact, and the investors should recover the investment cost.…”

Section: Introductionmentioning

confidence: 99%

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Merchant transmission investment by generation companies

Karimi

Kheradmandi

Pirayesh

2020

IET Generation, Transmission & Distribution

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Budget constraints may cause delays in the development of transmission expansion projects. These delays increase the probability of congestion in power systems. The congestions preclude a non-discriminatory access of Generation Companies (GenCos) to transmission network, thus leading to financial losses to certain GenCos. On the other hand, a higher degree of risk is involved in transmission investment, and a long time period is required to return the capital cost. It would, therefore, be effective to offer structures to promote merchant investments in order to lighten the financial burden on the transmission service provider to avoid lengthy delays. This paper proposes a structure to involve the GenCos in merchant transmission investment. The rationale for engaging in such projects is that, as well as the profit from the merchant investment, the GenCos could make further profit from energy production by gaining improved access to load areas. The merchant investment cost of the transmission project is returned through long-term firm contracts together with revenues from financial transmission right. The most profitable plan of the GenCo is identified by conducting a cost-benefit analysis among expansion plans specified by the transmission system operator.

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Section: Investment Structurementioning

confidence: 99%

“…It is assumed that the expansion planning studies are performed prior to the investment problem by the TSO. The selected transmission expansion plan is taken from [17].…”

Section: Case Studymentioning

confidence: 99%