Different Approaches Towards Electricity Transmission Expansion

  title={Different Approaches Towards Electricity Transmission Expansion},
  author={Juan Rosell{\'o}n},
There is an intense debate regarding the best way to attract investment for the long-term expansion of an electricity transmission network. We study three hypotheses: the long-term financialtransmission-right hypothesis; the incentive-regulation hypothesis; and the market-power hypothesis. The first approach derives optimal transmission expansion through auctions of longterm financial transmission rights by an independent system operator. The second provides a Transco with incentives to expand… CONTINUE READING
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