Coordinating cross-border electricity interconnection investments and trade in market coupled regions

• Type: Article in International Scientific Journal
• Date: 2019

Authors

Manuel V. Loureiro (Author) Other; João Claro (Author) FEUP; Paul Fischbeck (Author) Other

Journal

Title: International Journal of Electrical Power & Energy Systems

Vol. 104

Pages: 194-204

ISSN: 0142-0615

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 4 Citations

Scopus - 5 Citations

INSPEC

Other information

Authenticus ID: P-00P-13W

DOI: 10.1016/j.ijepes.2018.07.003

Abstract (EN): Investments in cross-border electricity interconnections are key for the integration of the European energy market. To analyze policy frameworks for these decisions, we model two settings for the expansion of transmission capacity between two regions, where the volume of investment is agreed upon through either Nash-Coase or Nash bargaining. For each setting we provide fair share cost allocation solutions, respectively with and without compensations. Each region has its own TSO, maximizing social welfare within its geography, and the markets are modeled with linear supply and demand curves, with trade enabled by the interconnection. The results of the application of the models to the Iberian market suggest their ability to estimate realistic values for the capacity of cross-border interconnection between two regions.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 11