Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/112281
Authors: 
Kemfert, Claudia
Kunz, Friedrich
Rosellón, Juan
Year of Publication: 
2015
Series/Report no.: 
DIW Discussion Papers 1492
Abstract: 
We analyze the current regulatory regime for electricity transmission in Germany, which combines network planning with both cost-plus and revenue-cap regulations. After reviewing international experiences on transmission investment, we first make a qualitative assessment of the overall German regime. The German TSOs have in general incentives to overinvest and inefficiently inflate costs. We further develop two models to analyze the transmission planning process. In the first model there is no trade-off between transmission expansion and generation dispatch. This is a modeling set-up similar to the one actually used in the German transmission planning (Netzentwicklungsplan). A second model alternatively allows for such a trade-off, and thus represents an optimal way of transmission network planning. Simulations with the two models are carried out and compared so as to illustrate the amount of excessive transmission capacity investment and welfare losses associated with the current regime.
Subjects: 
transmission planning
nodal prices
congestion management
electricity
Germany
JEL: 
L50
L94
Q40
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.