Electricity transmission pricing and transmission grid expansion have received increasing regulatory and analytical attention in recent years. Since electricity transmission is a very special service with unusual characteristics, such as loop flows, the approaches have been largely tailor-made...

We apply a merchant transmission expansion model to the trilateral market coupling arrangement among the Netherlands, Belgium and France as a generic example, and note that it can be applied to any general market splitting or coupling of different national power markets in Europe. In this...

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...

To date, the distributive implications of incentive regulation on electricity transmission networks have not been explicitly studied in the literature. More specifically, the parameters that a regulator might use to achieve distributive efficiency under price-cap regulation have not yet been...

This paper proposes an incentive mechanism for transmission expansion planning. The mechanism is a bilevel program. The upper level is a profit-maximizing transmission company (Transco) which expands its transmission system while endogenously predicts and influences the generation investment....

This paper presents a case study of regulation of natural gas pricing in Mexico as a case of “successful” policy research. Studies done under an academic agreement between the Comisión Reguladora de Energía (CRE) and the Centro de Investigación y Docencia Económicas (CIDE) in Mexico City...

At the present time, solar power is not a competitive fuel for supplying electricity to the grid in the United States. However, an economic model developed by the U.S. National Renewable Energy Laboratory (NREL) forecasts that solar power production costs could drop twenty percent every time...

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 studies the possible impacts of LNG projects on natural gas prices in both sides of the US-Mexico border in California. In California, gas prices are high and the demand is expected to grow. Several projects of LNG facilities have been proposed and have to cope with public opinions...

In 1997, the Comision Reguladora de Energia of Mexico implemented a netback rule for linking the Mexican natural gas price to the Texas price. At that time, the Texas price reflected a reasonably competitive market. There have been dramatic increases in the demand for gas, and there are various...