Comparative Analysis of Methodologies for Allocating Transmissions Costs Applied to International Interconnections

A new challenge in electric energy industry, especially in Latin American countries, is to increase interconnections between systems and introduce competition between neighboring markets. One regulatory point to be considered is to choose an appropriate methodology to allocate transmission interconnection costs among market participants. In this work, economic benefit, postage stamp, influence areas and electricity tracing methodologies are compared and analyzed applied to an interconnection between two Latin American markets. These methodologies are compared in order to find differences between them and their advantages and disadvantages. The applied procedure allows identifying for which markets participants the differences are significant and what it means for the applicability of these methodologies