We propose a merchant-regulatory framework to promote investment in the European natural-gas network infrastructure based on a price cap over two-part tariffs. As suggested by Vogelsang (2001) and Hogan et al., (2010), a profit maximizing network operator (NO) facing this regulatory constraint...

We propose a merchant-regulatory framework to promote investment in the European natural-gas network infrastructure based on a price cap over two-part tariffs. As suggested by Vogelsang (2001) and Hogan et al., (2010), a profit maximizing network operator (NO) facing this regulatory constraint...

Electricity transmission has become the pivotal industry segment for electricity restructuring. Yet, little is known about the shape of transmission cost functions. Reasons for this can be a lack of consensus about the definition of transmission output and the complexity of the relationship...

This paper examines the Hogan-Rosellón-Vogelsang (2007) (HRV) incentive mechanism for transmission expansion, and tests it for different network topologies. This new mechanism is based upon redefining transmission output in terms of point-to-point transactions or financial transmission rights...

This paper provides a new mechanism on how to overcome transmission expansion in the specific European context. We test the Hogan-Rosellón-Vogelsang (2007) (HRV) incentive mechanism for different network topologies. The HRV mechanism is based on redefining the output of transmission in terms of...

We study the performance of different regulatory approaches for the expansion of electricity transmission networks in the light of realistic demand patterns and fluctuating wind power. In particular, we are interested in the relative performance of a combined merchant-regulatory mechanism...

This paper presents an application of a mechanism that provides incentives to promote transmission network expansion in the electricity system of the Ontario province. Such a mechanism combines a merchant approach with a regulatory approach. It is based on the rebalancing of a two-part tariff...

This research presents an application of the Hogan, Rosellón and Vogelsang (2010) (HRV) mechanism —that promotes electricity transmission network expansion— in the Peruvian electricity transmission system known as SEIN (Sistema Eléctrico Interconectado Nacional). The HRV mechanism combines...

This paper presents an application of a mechanism that provides incentives to promote transmission network expansion in the area of the US electric system known as PJM. The applied mechanism combines the merchant and regulatory approaches to attract investment into transmission grids. It is...

We address investment in regulated natural gas pipelines when investment is lumpy and the demand for gas is stochastic. This is a problem that can be solved in theory as a dynamic program, but a practical solution depends on functions and parameters that are either subjective or cannot be...