Abstract FTR/CRR market design and development market participant’s perspective

Author

Session, P.

fYear

2008

fDate

20-24 July 2008

Firstpage

1

Lastpage

2

Abstract

This paper presents the purpose of the FTR market is to provide a mechanism to manage congestion risk as well as improve the economic signaling for new transmission development. FTRs do not represent a right for physical delivery of power. They only represent the right to compensation for congestion costs over a specified path. Some market participants use FTRs to hedge against congestion charges for their use over the transmission system. Other market participants do not have market positions and use FTRs simply for investment. Both types of participants are essential to the efficiency of the FTR market as they create liquidity in the market and decrease the risk that the auction costs exceed the auction benefits.

Keywords

power markets; power transmission economics; risk management; FTR-CRR market design; economic signaling; market participants perspective; risk congestion management; transmission system; Costs; ISO; Investments; Power generation economics; Power system economics; Process planning; Risk management; Robustness; Signal design; System testing;

fLanguage

English

Publisher

ieee

Conference_Titel

Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century, 2008 IEEE

Conference_Location

Pittsburgh, PA

ISSN

1932-5517

Print_ISBN

978-1-4244-1905-0

Electronic_ISBN

1932-5517

Type

conf

DOI

10.1109/PES.2008.4596780

Filename

4596780