Transmission Network Expansion in Different Structures of Electric Power Industry

The paper continues a series of researches concerning the results and by-effects of unbundling of networks from generation and consumption in electric power industry. This paper studies how the unbundling influences network expansion. It is shown that a new line is more profitable for a generating company than for a specialized network company. Another result obtained is that the transfer capabilities of lines constructed by generating companies tend to be higher than those of the lines constructed by network companies. Finally it is shown that the electricity market regulation which allows generating companies to construct and operate their own lines results in higher transfer capabilities of the networks and lower transmission prices.