2 results for Scholarly text, A Scheme For Incentivizing Investment in Transmission Enhancements

  • A Scheme For Incentivizing Investment in Transmission Enhancements

    Contreras, Javier (2007)

    Scholarly text
    Victoria University of Wellington

    Providing the right incentives for investment continues to be a major source of concern in the New Zealand electricity sector. This seminar outlines a decentralised incentive mechanism designed to encourage transmission investment within a competitive market environment based on a system that rewards investors according to the additional social welfare they create. This mechanism is then compared with a centralised system in which all decisions are made by a single transmission planner.To read the paper this presentation is based on click here.

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  • A Scheme For Incentivizing Investment in Transmission Enhancements

    Contreras, Javier; Gross, George; Ruiz-Gomez, Isabel (2007)

    Scholarly text
    Victoria University of Wellington

    We present an incentive scheme to stimulate investment in the improvement/ expansion of the transmission network in the competitive market environment. The formulation of these incentives is based on a decentralized transmission asset investment model and is derived from the value added to the social welfare by an asset investment. In the formulation we view each potential investor as a player in a cooperative game and we use the unique solution provided by the Shapley value to allocate the payment to each successful investor commensurated with the increase in social welfare the investment brings to the system. The formulation brings valuable insights on the transmission investment topic. We apply the proposed methodology to the Garver 6-bus system to illustrate the capabilites and flexibility of the scheme and to gain insights into the development of network improvements through the formulation proposed.

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