This paper evaluates regulatory uncertainty and inefficiency that may prevent merchant transmission investors from committing in Europe, in particular when they are dominant generators. We argue that market players may perceive regulatory uncertainty to acquire exemption on merchant line mainly...

This paper evaluates the opportunity and efficiency to introduce a two-part tariff to coordinate the location of power plants with lumpy transmission investments. Nodal pricing sends the short run component of such a two-part tariff and we study the case where the average participation tariff...

This paper aims at understanding and assessing the main methods proposed by ETSO and EuroPEX [1] to define and allocate interconnection capacities in Europe. We model these methods and evaluate their technical and economic efficiency on a 7-node network. We find first, that, unsurprisingly, the...

This paper addresses the problem of transmission loss allocation in a power system where the generators, the demands and the system operator are independent. We suppose that the transmission losses are exclusively charged to the generators, which are willing to adopt a perfectly competitive...

With the increased use of wind energy the power generation several Transmission System Operators (TSO) have increasing difficulties for congestion forecasting due to the unpredictable nature of the energy source. This paper proposes to enhance the congestion management using a real time...

As far as the management of the power flows on a transmission network is concerned by externality, Transmission and System Operators (TSOs) are externality market designers, and so can be studied thanks to a modular analysis grounded on Wilson [2002], Brunekreeft et al. [2005] and Glachant et...

Following several regional initiatives on the day-ahead and intra-day stage, integrating real-time balancing markets constitutes a logical next step in the process towards an Internal Electricity Market (IEM) in Europe. So far, realtime balancing market designs significantly differ between...

This paper addresses the problem of interaction between short run and long run locational signals and the coordination between generation investments and lumpy transmission investments. The short run locational signals we evaluate are sent by nodal pricing and the long run ones are sent by the...

In a “Weak institutional complementarity” type of institution building it is typically the less replaceable institutional characteristic which dictates the path of change for the institution as a whole. We will show it is exactly what explains the diversity and imperfection of actual...

Transmission and System Operator (TSO) is the power flows externality market designer. And so, not only is TSO a module of power markets but its missions that are related to the management of power flows can also be studied thanks to a modular analysis. An ideal first-best TSO can then emerge as...