Merchant interconnector projects by generators in the EU: effects on profitability and allocation of capacity

0365083 - NHÚ 2012 IT eng V - Výzkumná zpráva
van Koten, Silvester
Merchant interconnector projects by generators in the EU: effects on profitability and allocation of capacity.
San Domenico di Fiesole: European University Institute, Robert Schuman Centre for Advanced Studies, 2011. 23 s. RSCAS Working Papers, 2011/10.
Grant CEP: GA MŠMT LC542
Výzkumný záměr: CEZ:AV0Z70850503
Klíčová slova: electricity markets * regulation * cross-border electricity transmission
Kód oboru RIV: AH - Ekonomie
http://hdl.handle.net/1814/15797

When building a cross-border transmission line (a so-called interconnector) as a for-profit (merchant) project, where the regulator has required that capacity allocation be done non-discriminatorily by explicit auction, the identity of the investor can affect the profitability of the interconnector project and, once operational, the resulting allocation of its capacity. Specifically, when the investor is a generator (hereafter the integrated generator) who also can use the interconnector to export its electricity to a distant location, then, once operational, the integrated generator will bid more aggressively in the allocation auctions to increase the auction revenue and thus its profits.
Trvalý link: http://hdl.handle.net/11104/0200417