A novel Target Capacities Identification Methodology: the Italian Approach

In order to ensure power system reliability and security in long term scenario, the identification of the costeffective interconnection levels is one of the main objectives in the modern network planning framework. Terna, the Italian Transmission System Operator (TSO), with the goal of defining the efficient target capacities for each significant market section of the Italian power system developed a novel iterative methodology. The aim to this paper is to provide an exhaustive presentation of the procedure and to show the results obtained for the critical section Centre South–South. In particular, the price spread and the number of congestion hours resulting from market simulations are the main parameters investigated to decide which sections/borders are suitable for additional transmission capacity implementation. The corresponding benefits must be verified by the means of market and network analysis in order to demonstrate the cost-efficiency for the system. The analyses were carried out in two different contrasting future energy scenarios in order to obtain the related different development strategies.