Transmission Investment and Planning in Deregulated Market Environment: A Literature Survey (Part 2)

Abstract

This paper is the second half of a 2-part paper that provided details of a comprehensive survey of issues related to transmission investment and expansion planning in the electricity market. Results of the survey suggested that transmission regulation is needed to provide a fair playing field for competition and to ensure that transmission networks are optimally expanded while also meeting reliability constraints. Regulations will create further incentives for cost reduction while ensuring that regulated firms have assurance of cost recovery. Transmission planning should be controlled or monitored by a government organization or regulator. Legislation is needed to ensure that regulatory authorities can enforce reliability criteria. Mandatory reliability standards and metrics for reliability services should be implemented. The economic benefits of transmission expansion in a deregulated market should be modelled using non-deterministic approaches. It was concluded that transmission expansion plans should be able to meet future transmission capacity requirements, secure returns on investment, and ensure reliability levels for customers. Various international transmission expansion plans were also provided.