FTR allocations to ease transition to nodal pricing: An application to the German power system

A-Tier
Journal: Energy Economics
Year: 2016
Volume: 60
Issue: C
Pages: 176-185

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A shift from zonal to nodal pricing improves the efficiency of system operation. However, resulting price changes also shift surplus across generation and loads at different locations. As individual actors can lose, they might oppose any reform. We explore how allocation of financial transmission rights can be used to mitigate the distributional impact. The fundamental effects with regard to reference node/hub for FTRs, the share of FTRs to be freely allocated and the metric to determine the proportion of rights allocated are explored. We test the results in a setting based on the hourly modeling of the German power system at nodal representation.

Technical Details

RePEc Handle
repec:eee:eneeco:v:60:y:2016:i:c:p:176-185
Journal Field
Energy
Author Count
3
Added to Database
2026-01-25