Transmission Market Design
Transmission Market Design
This chapter discusses how the use of the transmission grid should be priced to make the electricity market efficient. It summarizes the main developments that build on a coordinated spot market and point to the use of market incentives to facilitate transmission investment. This chapter discusses factors needed to consider how to determine transmission investment policy and explains that with the right choice merchant transmission investment could play a significant but not exclusive role in efficient transmission expansion.
Keywords: transmission grid, electricity market, spot market, merchant transmission investment, transmission expansion
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