Electric grid investment under a contract network regime

摘要: This paper analyzes the incentives for electric grid investment that result from various proposed transmission network property regimes. In particular, we focus on “transmission congestion contracts” within a contract regime such as by William Hogan. We formalize rule awarding these new rights to investors and show that, under certain conditions, this approach can effectively deter detrimental investments, some of which are encouraged other However, when conditions not met, market participants may still find it profitable undertake alterations whole.