Electricity transmission congestion costs: A review of recent reports

Lesieutre, Bernard C. ; Eto, Joseph H.

Lawrence Berkeley National Laboratory

关键词: Lawrence Berkeley Laboratory;    Prices;    Electricity;    29 Energy Planning, Policy And Economy;   

DOI  :  10.2172/821764
RP-ID  :  LBNL--54049
RP-ID  :  AC03-76SF00098
RP-ID  :  821764

美国|英语

来源: UNT Digital Library

【 摘 要 】

Recently, independent system operators (ISOs) and others have published reports on the costs of transmission congestion. The magnitude of congestion costs cited in these reports has contributed to the national discussion on the current state of U.S. electricity transmission system and whether it provides an adequate platform for competition in wholesale electricity markets. This report reviews reports of congestion costs and begins to assess their implications for the current national discussion on the importance of the U.S. electricity transmission system for enabling competitive wholesale electricity markets. As a guiding principle, we posit that a more robust electricity system could reduce congestion costs; and thereby, (1) facilitate more vibrant and fair competition in wholesale electricity markets, and (2) enable consumers to seek out the lowest prices for electricity. Yet, examining the details suggests that, sometimes, there will be trade-offs between these goals. Therefore, it is essential to understand who pays, how much, and how do they benefit in evaluating options (both transmission and non-transmission alternatives) to address transmission congestion. To describe the differences among published estimates of congestion costs, we develop and motivate three ways by which transmission congestion costs are calculated in restructured markets. The assessment demonstrates that published transmission congestion costs are not directly comparable because they have been developed to serve different purposes. More importantly, critical information needed to make them more comparable, for example in order to evaluate the impacts of options to relieve congestion, is sometimes not available.