Transmission capacity investments: a five-step process for cost-benefit and risk management analysis
In and between many countries, there is need for increased transmission capacity in order to create an integrated market. More capacity can improve utilization of generation resources, location of new production, and possibly also competition. However, transmission investments are costly. Ensuring that the most favourable investments are carried out is thus very important. While unprofitable investments are naturally not carried out, profitable investments need to be matched against each other to secure that the best investment indeed is made. This paper contributes to further development of the methods for economic cost-benefit analysis in relation to electricity transmission investments, with special focus on managing risk. Based on a study of TSOs in the Nordic countries, we propose an overall five step analysis and decision process. The proposed steps are: 1) Development of scenarios, 2) Net present value calculation, 3) sensitivity analysis, 4) real option analysis, and 5) decision.
Transmission investments cost-benefit analysis interconnections electricity markets
N.DAMSGAARD P.SONNERBY A.LINDHOLM
Econ P(o)yry AB Sweden
国际会议
桂林
英文
1-10
2009-10-28（万方平台首次上网日期，不代表论文的发表时间）