Framework for the design and analysis of congestion revenue rights

摘要: The capability to deal effectively with the uncertainty associated locational marginal prices (LMPs) in congestion management schemes requires development of appropriate financial tools. Congestion revenue rights (CRR) are hedging tools that provide holder reimbursement charges day-ahead market and thereby transmission service customers price certainty. In this paper, we construct a framework for design analysis CRR by marrying finance theory notions salient characteristics electric power systems electricity markets. consists three interconnected layers one layer each represent models network, commodity markets interaction between is represented as information flows. has sufficient scope allow broad range problems ensuring certainty services. structural modularity provides flexibility analyze issues structures provision services competitive environment. We introduce new notion payoff parity practical pricing scheme, which used basis more liquid application further illustrated conditions guarantee adequacy issuer.