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Financial Transmissio Rights: Complementary Chain in Electricity Industry Restructuring
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Davoud Manzour   , Leili Niakan * |
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Abstract: (8267 Views) |
| Following the restructuring of electricity industry, electricity markets in many countries segmented in three sectors of production, distribution and transmission, and the structure of the vertically integrated industry was abolished. In this context, power transmission and related issues in the design of the electricity market is of special importance. The main feature of competitive electricity markets, are non-discriminatory and poen access to the transmission system. Financial Transmission Rights to facilitate open and competitive access to the transmission system, play an essential role in the market design. Financial Transmission Rights protect the network users among the costs of transmission congestion and is supplied in both poin to point and flowgate forms in electicity markets. The pricing of these financial instruments is based on the Local Marginal Prices. In this article, we investigate the basic properties of Financial Transmission Rights, their pricing, trading and application in power industry, and review some world exercises in this subject. |
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| Keywords: Power Industry, Financial Transmission Rights, Congestion, Local Marginal Price |
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Full-Text [PDF 211 kb]
(1751 Downloads)
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Type of Study: Research |
Subject:
Energy Planning Models
Received: 2012/12/22 | Published: 2012/07/15
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