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...

Purpose: The objective of the paper is to highlight the volatility of wind energy production, the renewable source of energy whose output is the most difficult to predict due to its dependence on climatic factors. The present research helps to analyze the risks assumed both by the producers who...