Regulating Transmission in a Spatial Oligopoly : A Numerical Illustration for Belgium

This paper introduces strategic behavior of the electricity network operator in a congested network with imperfect competition for generation. It models a two stage Stackelberg game. First, the network operator sets transmission prices, then generators set output and sales. Several scenarios for the generation market structure and the behavior of the network operator are compared numerically. The calibration of the numerical model is based on data of the Belgian electricity market