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Optimal transmission tariff regulation for the Southern Baja-Californian electricity network system

Rubí Espinosa, Juan Rosellón
2017 Investigacion Economica  
The tariff imposed over the use of electricity transmission networks is one critical factor to achieve efficiency in electricity markets. In Mexico, the current transmission network tariffs are based on long run marginal costs. We propose an incentive pricecap mechanism and apply it to the meshed network system in the isolated electricity system of Southern Baja California, Mexico. We further compare the current transmission tariffs set by the Mexican regulator (cre) with the tariffs resulting
more » ... tariffs resulting from our regulatory scheme. We show that our mechanism prices the network at tariffs rendering superior welfare compared to the tariffs determined by Mexican authorities. Resumen La tarifa impuesta sobre el uso de la red de transmisión eléctrica es un factor crítico para lograr la eficiencia en los mercados de electricidad. En México, las tarifas vigentes se basan en costos marginales de largo plazo. Proponemos un mecanismo de precios máximos que generen incentivos a la inversión y lo aplicamos al sistema eléctrico aislado de Baja California Sur. Además, comparamos las tarifas actuales de transmisión establecidas por el regulador mexicano (cre) con las tarifas resultantes de nuestro esquema regulatorio. Demostramos que nuestro mecanismo de precios proporciona un bienestar superior en comparación con las tarifas determinadas por la autoridad mexicana en la red de transmisión eléctrica. Palabras claves: derechos financieros de transmisión, precios nodales, electricidad, gestión de la congestión, inversión. Clasificación jel: L50, L94, Q40. 4 Clean energy technologies in Mexico include hydro and nuclear generation, as well as renewable energy sources (solar, wind, geothermal and biomass). 5 76% of generation capacity for public service corresponds to plants owned by cfe, and the remaining 24% plants are owned by Independent Power Producers (ipp's). 6 Regions Ixtepec (40), Güémez (21) and Loreto (53) were incorporated into the national electricity system in 2015.
doi:10.1016/j.inveco.2017.12.001 fatcat:dpjjovicazgupgrtard2fmkyiq