Cost-Effective Target Capacity Assessment in the Energy Transition and sensitivity analysis on the main inputs

Abstract

The cost-effectiveness of new transmission grid infrastructures became a more complex issue in the liberalized electricity market. The Transmission System Operators (TSOs) have to manage relevant uncertainties in long-term planning studies by the means of new approaches able to identify the power system needs in future energy scenarios. In view of the above, the Italian TSO developed a novel methodology to assess the target capacity that evaluates the additional cost-effective transfer capacity between internal bidding zones and at borders of the Italian power system in different planning scenarios. The aim of this paper is to present the results obtained from the application of this methodology to the Italian power system in two contrasting energy scenarios for 2030 horizon. Furthermore, the impact of some input data and other significant parameters variation, is assessed in sensitivity analysis performed by the means of market simulations.