Enzo Sauma y Shmuel Oren. 2007. Aligning Generators` Interests with Social Efficiency Criteria for Transmission Upgrades in an LMP Based Market, Proceedings of the IEEE Power Engineering Society 2007 General Meeting, Tampa, FL, U.S.A., 22-28 de Junio, 2007 (2007)

Aligning Generators` Interests with Social Efficiency Criteria for Transmission Upgrades in an LMP Based Market

Revista : Proceedings of the IEEE Power Engineering Society 2007 General Meeting
Tipo de publicación : Conferencia No A* ni A

Abstract

In this paper, we present a numerical example to illustrate some situations under which generation companies in Locational Marginal Pricing (LMP) based markets could have the right incentives to support social-welfare-increasing network expansions. In particular, this paper focuses on the incentives that generation firms at generation pockets have to support transmission expansions and how these incentives are affected by the ownership of financial transmission rights (FTRs). We analyze the effect of local market power on such incentives when considering both that generation firms can hold FTRs and that generation firms cannot hold FTRs.