A profit-maximizing approach for transmission expansion planning using a revenue-cap incentive mechanism

t-Maximizing Approach for Transmission Expansion Planning Using a Revenue-Cap Incentive Mechanism

This paper proposes an incentive mechanism for transmission expansion planning. The mechanism is a bilevel program. The upper level is a profit-maximizing transmission company (Transco) which expands its transmission system while endogenously predicts and influences the generation investment. The lower level is the optimal generation dispatch and investment. The Transco funds its transmission i...

A Transmission Expansion Planning Model for Maximizing Merchant Investment

Regulatory Impacts on Distributed Generation and Upstream Transmission Substation Expansion Planning: A Novel Stochastic Bi-level Model

In this paper, a novel framework is proposed to study impacts of regulatory incentive on distributed generation (DG) investment in sub-transmission substations, as well as upgrading of upstream transmission substations. Both conventional and wind power technologies are considered here. Investment incentives are fuel cost, firm contracts, capacity payment and investment subsidy relating to wind ...

Economic Regulation Design for the Electricity Distribution Companies of Iran

In addition to the necessity of liberalizing the price of the various sectors of electricity, the regulation of sectors that still maintain their own monopoly structure is mandatory. In order to improve the efficiency of these sectors and encourage their cost reduction, incentive-based regulatory approaches are used which rely on performance evaluation. Due to the monopolistic structure of Iran...

A Dynamic Incentive Mechanism for Transmission Expansion in Electricity Networks: Theory, Modeling, and Application

We propose a price-cap mechanism for electricity-transmission expansion based on redefining transmission output in terms of financial transmission rights. Our mechanism applies the incentive-regulation logic of rebalancing a two-part tariff. First, we test this mechanism in a three-node network. We show that the mechanism intertemporally promotes an investment pattern that relieves congestion, ...