Transmission fees in a multi - service / multi - TSO interconnection

Abstract

The paper attempts to bring a contribution to both the transmission service pricing and the congestion management solutions, for a multi-TSO power interconnection. It must first be noted that the proposed methodology owed much to the significance of the grid services; it ensures a fair allocation of sustainable grid cost on the grid customers, too. Revenues and corresponding rates components are identified for each service the grid is selling. There is an access to grid/market service as a complement to the loss compensation and congestion compensation services. The grid services are supplied in the grid nodes and can be straightforwardly integrated into the energy wholesale market. The access to grid/market fee, or otherwise speaking, the opportunity fee, is basically compliant with the market principles notwithstanding it may contradict some paradigms of the current transmission pricing: full predictability and non-transaction dependence of the grid rates, confidentiality of the market energy prices. It must be admitted that these paradigms do not have much in common with the market efficiency and the grid sustainability. The loss compensation and the congestion compensation services are sold at regulated fees featuring significant locational signals for the efficient operation and development of both the grid and the grid users facilities. However, the rate-based congestion compensation service implies a certain harmonization of the multi-TSO grid regulation while avoiding much controversy on the cross-border congestion management issue