Available transmission capacity (ATC) and its value under open access

Strictly engineering aspects of available transmission capacity (ATC) are analyzed first. Nonlinear network theory is used to provide several key conditions under which one could define a notion of ATC and specific novel algorithms for its evaluation. Next, the fundamental problem which prevents one from developing an economically efficient distributed transmission market based on the ATC is identified. It is suggested that for an electric power network of an arbitrary topology it is not possible to map the computed ATC onto its market value. All findings are illustrated using examples of small power systems.