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Léautier, Thomas-Olivier
(2014)
Transmission constraints and strategic underinvestment in electric power generation.
TSE Working Paper, n. 13-459, Toulouse
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Abstract
This article is the first to examine electric power producers' investment decisions when com- petition is imperfect and the transmission grid congested. This analysis yields numerous original insights. First, congestion on the grid is transient, and may disappear when demand is highest. Second, transmission capacity increases have complex impacts on generation: they may increase, decrease, or have no impact on the marginal value of generation, and may have similar or opposite impacts on the marginal value of different technologies. Third, the true social value of transmission, including its impact on investment, may be significantly lower than is commonly assumed.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | 6 January 2014 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | electric power markets, imperfect competition, investment, transmission constraints |
| JEL Classification: | D61 - Allocative Efficiency; Cost-Benefit Analysis L11 - Production, Pricing, and Market Structure; Size Distribution of Firms L94 - Electric Utilities |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse), TSM Research (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 09 Jul 2014 17:41 |
| Last Modified: | 02 Apr 2021 15:48 |
| OAI Identifier: | oai:tse-fr.eu:27855 |
| URI: | https://publications.ut-capitole.fr/id/eprint/15810 |
