Unformatted text preview: of loop flow has the economic consequence that property rights are not assigned
itle. No one owns transmission capacity per se; rather, qualified market participants obtain privileges to Bus 3 L Monopoly Line 100 .1 2- 3 220 .1 1- 3 300 .1 Bus 2 Capacity Impedance 1- 2 G2 Bus 1 G1 Bus 3 L Suppose G1 buys all the FTR to line 1- 3. - G2 will not be able to sell to L. Suppose FTRs are privately owned. - By limiTng sales, owner can increase prices. SoluTon to both issues: Centralized Trading. Centralized Trading • Really an atempt at central planning that turns into a really complicated aucTon. • Ask generators for their capaciTes and marginal costs – Assumes incenTve compaTbility • Then, given loads, minimize the cost of generaTon required to – Balance that load (security)...
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- Fall '13
- Shmuel Oren