View Item 

Economic assessment of transmission expansion projects in competitive electricity markets - an analytical review

Access Status
Open access
Authors
Hesamzadeh, M.
Hosseinzadeh, N.
Wolfs, Peter
Date
2008
Type
Conference Paper

Metadata
Show full item record
Citation
Hesamzadeh, M. and Hosseinzadeh, N. and Wolfs, Peter. 2008. Economic assessment of transmission expansion projects in competitive electricity markets - an analytical review, in Unknown (ed), Universities Power Engineering Conference, Sep 1 2008, pp. 1-10. Padova, Italy: IEEE.
Source Title
Universities Power Engineering Conference, 2008. UPEC 2008. 43rd International
Source Conference
Universities Power Engineering Conference
ISBN
Faculty
Department of Electrical and Computer Engineering
School of Engineering
Faculty of Science and Engineering
Remarks

Copyright © 2008 IEEE This material is presented to ensure timely dissemination of scholarly and technical work. Copyright and all rights therein are retained by authors or by other copyright holders. All persons copying this information are expected to adhere to the terms and constraints invoked by each author's copyright. In most cases, these works may not be reposted without the explicit permission of the copyright holder.

URI
Collection
Abstract

Restructuring of the electricity market has changed many aspects of the transmission system operation and planning. Reliability-Driven and Economic-Driven transmission expansion planning by regulated and private utilities are the substitutes of the traditional Cost-Driven transmission expansion planning. Reliability-based criteria for assessment of the transmission projects are almost well-developed while there exists a lack of a comprehensive framework for the economic evaluation of the transmission projects. Definition of a quantitative and monetary framework for economic evaluation of future transmission projects demands a detailed market analysis. In addition, specific characteristics and responsibilities of the transmission system in the open access structure must be understood comprehensively. To reaching the aforementioned goal, an analytical review on the existing economic assessment methodologies would be highly beneficial for the researchers in this area. Moreover, most of the review literatures on transmission investment in competitive electricity markets are general. These review literatures have tried to address all aspects of this challenging issue with devoting only few paragraphs to economic assessment of transmission projects. Given the aforementioned shortcomings, this article would bridge the gap by the following contributions: Firstly, reviewing available approaches for economic assessment of transmission projects based on research papers and industrial reports, Secondly, analysing the reviewed criteria critically by applying them to a modified Wood and Wollenberg 6-bus case study and Finally, summarizing the key components of a successful Economic Assessment Framework for transmission expansion or upgrade projects. Practical experiences of California Electricity Market, New England Electricity Market, Pennsylvania, New Jersey, and Maryland (PJM) and National Electricity Market, Australia have been accommodated in the article.