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Project information

Evaluation of regulatory schemes of transmission services and system operation in the context of the Internal Electricity Market

May 2005 - April 2006

Funding entity REE (Red Eléctrica de España)


The project responds to the interest of REE to explore the economic impact that the different possible schemes of regulation of the transmission activity and system operation in the context of the Internal Electricity Market of the European Union may have on the electricity sectors of the concerned countries. The project will pay special interest to the Spanish system and also to the impact on the efficiency of the entire Internal Electricity Market. The three major issues to be addressed are: cross border tarification, congestion management and grid planning and expansion.

During the second year of the project congestion management will continue being a major area of interest. Those congestion management mechanisms that may more directly affect the Spanish system will be studied in more depth. More specifically, the project will examine the management of congestions in the Iberian electricity market, the allocation of capacity on the border between France and Spain, the effect of assignig different priorities to the treatment of the local and cross-border congestions and the management of congestions in the IEM. Another topic of major interest to be studied is the design of locational signals in the transmission charges that could help in guiding the location of new investments in generation.


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