Real gains from flow-based methods for allocating power transmission capacity in Europe

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 allocation methods are all the more efficient as the Kirchhoff laws are integrated more precisely in the market clearing. Second, and more surprisingly, we find that the zonal vision of the grid considered by all these methods has important consequences on the technical and economic efficiency as it may cause the capacity limits of powerlines to be exceeded.Electricity, Transmission Capacity Allocation, Market Coupling, ATC-based, flow-based.

Is combination of nodal pricing and average participation tariff the best solution to coordinate the location of power plants with lumpy transmission investments?

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 sends the long run one. We argue that this solution is helpful because the average participation tariff tackles lumpiness of transmission capacity while being as cost-reflective as possible. Our proposition is evaluated based on a double optimization model where a TSO minimizes the transmission cost while a generator minimizes its own cost that may take into account network constraints and include the average participation tariff. Numerical simulations are performed on a two-node network evolving during twenty years with increasing demand. The joint implementation of nodal pricing and the average participation tariff stays the best combination to coordinate as efficiently as possible the generation and transmission investments, although the optimal set of generation and transmission investments may not be reached because of transmission lumpiness. The simulations show also that implementing locational network tariffs is prioritary over implementing nodal pricing to coordinate more efficiently the location of generation with lumpy transmission investment. In the considered examples, the average participation tariff allows a more efficient location of generation even when the congestion management scheme being redispatch sends no short run locational signal.Generation investment; Lumpy transmission investment; Long run coordination; Locational signals; Efficiency evaluation

A contribution of experimental economics toward characterization of the use of market power in oligopolisitc markets

Despite the numerous researches about imperfect competition, the market power remains difficult to quantify using traditional economics methods. In this paper, we propose an experimental economics design and outline some ways of analysis of its results toward characterization of the use of market power. A simple system with two regions and a limited interconnection transfer capacity allocated by an implicit auction is studied. Depending on the experiments two or three subjects share equitably the production capacity in one region, while the production capacity is equitably shared among 5 subjects leading to a more competitive situation in the second one. In both regions, we observe a market price that is different from the theoretical results allowing a quantification of the use of market power. Results are also analyzed based on a characterization of the subjects' behaviour. Further the impact of subjects' behaviour on the market price evolution is described.experimental economics, market power, electricity markets, oligopolistic markets

The role of transmission investment in the coordination between generation and transmission in the liberalized power systems

This paper examines how transmission coordinates with generation to the long term in a liberalized power system. We rely on a modular analysis to separate the mechanisms of coordination between generation and transmission of electricity into distinct modules. The governance structure of transmission completes this analysis framework. We then show that in a logic of complementarity, this governance structure influences the options that TSO implements to manage effectively power flows. Although locational signals are necessary to guide the installation of new power plants, the governance structure explains that investment in network may be the only effective method of longterm coordination between generation and transmission.

Anticipation for Efficient Electricity Transmission Network Investments

This paper proposes a model and preliminary results to evaluate the efficiency of anticipating the connection of power plants with shorter construction duration than the time needed to obtain the right to upgrade the network and finally to do this reinforcement. This evaluation is made in presence of a cost of anticipation related to the study of the project of network investment and to the administrative procedures needed to obtain the building agreement. This model compares a proactive TSO that anticipates the connection of new generators and then the required network reinforcement, with a reactive one that does not make any anticipation but that may then face greater congestion while the network is being reinforced. The efficiency of these behaviors is measured in terms of social cost. We find out that there exists a limit of probability for the connection of generators beyond which a proactive TSO is more efficient than a reactive one. Evaluated on a realistic case of connection, this limit of probability is found quite low, which indicates that the proactive behavior for a TSO shall generally be the optimal one.

The diversity of design of TSOs

It is puzzling today to explain diversity and imperfection of actual transmission monopoly designs in competitive electricity markets. We argue that transmission monopoly in competitive electricity markets has to be analysed within a Wilson (2002) modular framework. Applied to the management of electricity flows, at least three modules make the core of transmission design: 1° the short run management of network externalities; 2° the long run management of network investment; and 3° the coordination of neighboring Transmission System Operators for cross border trade. In order to tackle this diversity of designs of TSOs, we show that for each of these modules, three different basic ways of managing them are possible. Among the identified twenty seven options of organisation, we define an Ideal TSO. Second, we demonstrate that 1°monopoly design differs from this Ideal TSO and cannot handle these three modules irrespective of the “institutional” definition and allocation of property rights on transmission; while 2°definition and allocation of property rights on transmission cannot ignore the existing electrical industry and transmission network structure: they have to complement each other to be efficient. Some conclusions for regulatory issues of transmission systems operators are derived from this analysis of network monopoly organisation.design of TSOs; management of power flows; governance structure of transmission

The role of transmission investment in the coordination between generation and transmission in the liberalized power systems

This paper examines how transmission coordinates with generation to the long term in a liberalized power system. We rely on a modular analysis to separate the mechanisms of coordination between generation and transmission of electricity into distinct modules. The governance structure of transmission completes this analysis framework. We then show that in a logic of complementarity, this governance structure influences the options that TSO implements to manage effectively power flows. Although locational signals are necessary to guide the installation of new power plants, the governance structure explains that investment in network may be the only effective method of longterm coordination between generation and transmission.The diversity of design of TSOs

Modélisation d'une décharge électrique de type streamer dans l'air à haute-pression sous géométrie non uniforme

Streamer induced filamentary discharges have numerous industrial applications. They also appear in natural phenomena. Recently there has been a realisation that a better understanding is required of the intrinsic phenomena associated with this type of discharge. The object of this work has been to model (using fluid equations) and to simulate the spatio-temporal evolution of the primary charged species and of the electrical field in the gas. This simulation has been realised in a two-dimensional geometry for a positive-point to plane gap, where the electrical field is strongly heterogeneous. It is based on the resolution of hydrodynamic equations by a specially modified characteristic method. The results, for a primary simulation, have been compared to various significant values. Then, the ionising wave formation and the trigger have been studied in more detail, by the introduction of the photo-triggered streamer process. Next, a photoionisation analysis has been performed, where the induced emission has been taken into account in photon treatment. A more industrial point of vue is presented in which the trigger and the propagation of the streamer discharge were studied as a function of the applied voltage, the point of curvature, the pressure and the point shape. Finally a return to the model has been made, with presentation of phenomena which tend to invalidate the local electric equilibrium, notably by taking into account the streamer head advance.Les décharges filamentaires induite par streamer (dard) ont de très nombreuses applications industrielles, elles apparaissent aussi très souvent dans la nature. Très vite, il est apparu la nécessité d'une compréhension des phénomènes intrinsèques de ce type de décharge. L'objectif de ce travail a été de modéliser par un jeu d'équations basé sur le modèle fluide, puis de simuler l'évolution spatio-temporelle des principales espèces chargées et du champ électrique dans le milieu. Cette simulation a été réalisée dans une géométrie bidimensionnelle pour un intervalle de type pointe-positive/plan où le champ est fortement inhomogène. Elle est basée sur la résolution des équations hydrodynamiques par un schéma des caractéristiques spécialement modifié pour ce cas. Les résultats d'une première simulation ont été comparés aux diverses valeurs significatives communément admises. Puis il a été montré plus en détail la formation de l'onde d'ionisation et le rôle important des photons dans le déclenchent en introduisant le processus de streamer photo- déclenché. Par la suite, une étude sur la photoionisation à été réalisée, le terme d'émission induite étant pris en compte dans le traitement des photons. Il à été présenté enfin dans une partie plus applicative, une étude sur le déclenchement et la propagation de la décharge en fonction de la tension appliquée, du rayon de courbure, de la pression du gaz et de la forme de la pointe. Enfin un retour sur les hypothèses faites lors de la modélisation a été fait, avec la présentation de phénomènes tendant à invalider l'équilibre du champ local, lors notamment de la prise en compte de l'avancement du streame

The role of transmission investment in the coordination between generation and transmission in the liberalized power systems

This paper examines how transmission coordinates with generation to the long term in a liberalized power system. We rely on a modular analysis to separate the mechanisms of coordination between generation and transmission of electricity into distinct modules. The governance structure of transmission completes this analysis framework. We then show that in a logic of complementarity, this governance structure influences the options that TSO implements to manage effectively power flows. Although locational signals are necessary to guide the installation of new power plants, the governance structure explains that investment in network may be the only effective method of longterm coordination between generation and transmission.