This paper proposes the application of ex-ante dynamic network tariffs for the recovery of investment costs in transmission network planning. The tariffs design is integrated in the long-term network expansion problem and in the underlying market clearing process, accounting for the impact of tariffs on the bidding strategies of price-responsive participants. Differently from the established ex-post approach, this method avoids negative surplus for marginal users and untruthful biddings. The methodology is described analytically and applied to a relevant case study, which demonstrates the positive effect of ex-ante tariffs in terms of increased social welfare, emphasizing their positive impact in scenarios with high price-elasticity of demand.
|Publication status||Published - 13 Oct 2020|
|Event||2020 17th International Conference on the European Energy Market (EEM) - Stockholm, Sweden|
Duration: 16 Sep 2020 → 18 Sep 2020
|Conference||2020 17th International Conference on the European Energy Market (EEM)|
|Period||16/09/20 → 18/09/20|