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An operational and institutional modular analysis framework of Transmission and System Operator Why Transmission and System Operators are not ideal ones

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  • Vincent Rious

    (SUPELEC-Campus Gif - Ecole Supérieure d'Electricité - SUPELEC (FRANCE))

  • Sophie Plumel

    (SUPELEC-Campus Gif - Ecole Supérieure d'Electricité - SUPELEC (FRANCE))

Abstract

Transmission and System Operator (TSO) is the power flows externality market designer. And so, not only is TSO a module of power markets but its missions that are related to the management of power flows can also be studied thanks to a modular analysis. An ideal first-best TSO can then emerge as a benchmark for comparison with real TSOs. The governance structure of TSO accounts for the gap between such an ideal first-best and real TSOs. Then, although the economic theory specifies a unique arrangement to reach efficiency, the diversity of transmission governance accounts for the diversity of arrangements to manage power flows. Moreover the comparison between an ideal first-best TSO and two reference TSOs, PJM and NGC, with quite opposite features accounts for heterogeneous results among TSOs.

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  • Vincent Rious & Sophie Plumel, 2006. "An operational and institutional modular analysis framework of Transmission and System Operator Why Transmission and System Operators are not ideal ones," Post-Print hal-00228320, HAL.
    • Handle: RePEc:hal:journl:hal-00228320
    Note: View the original document on HAL open archive server: https://centralesupelec.hal.science/hal-00228320
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    References listed on IDEAS

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    1. Brunekreeft, Gert & Neuhoff, Karsten & Newbery, David, 2005. "Electricity transmission: An overview of the current debate," Utilities Policy, Elsevier, vol. 13(2), pages 73-93, June.
    2. Boyce, John R. & Hollis, Aidan, 2005. "Governance of electricity transmission systems," Energy Economics, Elsevier, vol. 27(2), pages 237-255, March.
    3. Costello, Kenneth W., 2001. "Interregional Coordination versus RTO Mergers: A Cost-Benefit Perspective," The Electricity Journal, Elsevier, vol. 14(2), pages 13-24, March.
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    Cited by:

    1. Pollitt, M. J., 2011. "Lessons from the History of Independent System Operators in the Energy Sector, with applications to the Water Sector," Cambridge Working Papers in Economics 1153, Faculty of Economics, University of Cambridge.
    2. Pollitt, Michael G., 2012. "Lessons from the history of independent system operators in the energy sector," Energy Policy, Elsevier, vol. 47(C), pages 32-48.

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