Izvorni znanstveni članak

FINANCIAL TRANSMISSION AND STORAGE RIGHTS

MIRNA GRŽANIĆ orcid.org/0000-0003-4755-3481 ; Faculty of Electrical Engineering and Computing, University of Zagreb Unska 3, 10000 Zagreb, Croatia
MARKO DELIMAR ; Faculty of Electrical Engineering and Computing, University of Zagreb Unska 3, 10000 Zagreb, Croatia
TOMISLAV CAPUDER ; Faculty of Electrical Engineering and Computing, University of Zagreb Unska 3, 10000 Zagreb, Croatia

Sažetak

The paper presents concepts of Financial Transmission Rights (FTRs) and
Financial Storage Rights (FSRs) as key market concepts for alleviating congestion
issues in transmission networks. These instruments are in place in markets where
prices differ depending on the location/node due to congestions. They serve as a tool
for transmission system operators TSO (or independent system operators; ISOs) for
eliminating congestions by remunerating entities who make it possible. The paper
further discusses different aspects of FTRs, which are traditional financial
instruments used to hedge the risk of high cost occurrence associated with
transmission congestion. By owning and trading with FTRs, through auction or via
bilateral contracts, market participants can gain additional profit. More variable
and uncertain power system environment, characterized by high penetration of
renewable energy sources (RES), creates potential for storage units to assist
TSO/ISO in maximizing social welfare through FSR. As storage has the capability
to move energy in time, it can alleviate transmission lines congestion and create
profit through intertemporal arbitrage (by load shifting and peak shaving)
improving return rate of its investment. These concepts are additionally explained
by intuitive examples showing how, when congestion occurs and TSO/ISO awards
market participants who own transmission and storage rights, price volatility is
reduced.

Ključne riječi

auction markets; congestion management; financial storage rights; financial transmission rights; strategic bid

Hrčak ID:

199750

URI

https://hrcak.srce.hr/199750

Datum izdavanja:

15.12.2017.

Posjeta: 1.046 *