1 AIT Asian Institute of Technology

Transmission cost allocation in a competitive environment

AuthorTran Nguyen Chau
Call NumberAIT RSPR no.ET-04-01
Subject(s)Electric utilities--Costs
Electric power transmission--Costs
NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Environment, Resources and Development
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. ET-04-01
AbstractThe electricity market around the world has undergone major structural change for the past few years thus creating competition. This resulted in unbundling of the vertically integrated utilities such as generation, distribution and retailing. Due the large economics of scale, transmission is a naturally monopoly in most countries. As the trend of the electrical industry is heading towards more Open Transmission Access, transmission service is on its way to integrate onto the unbundling process to ensure fair and non-discriminatory transmission access. Efficient pricing in transmission service plays an important role that it ts necessary to send correct economic signals to transmission users relating to operation of exiting capacity, investment in new capacity, and forecasted demand. This research will identify some methods for determining transmission cost allocation of a network. This research is concerned with treating transmission as a separate business of transporting energy from any generator to any loads, while maintaining system integrity, with all transactions treated in an equal, non-discriminatory, manner. The problem is how to allocate the total cost of transmission between all the users in an equitable way which is at the same time provides them with the correct economical signals. Countries like England and Wales, Chile, and many others, are already using Transmission Open Access in practice.
Year2004
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. ET-04-01
TypeResearch Study Project Report (RSPR)
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSEnergy Technology (ET)
Chairperson(s)Surapong Chairarattananon
Examination Committee(s)Weerakom Ongsakul;Nadarajah Mithulananthan
Scholarship Donor(s)Electricity of Vietnam
DegreeResearch report (M.Sc.) - Asian Institute of Technology, 2004


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