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Evaluation of the energy component in the main grid tariff and the use of marginal loss rates; Evaluering av energileddet i sentralnettstariffen og bruk av marginaltapssatser

Abstract

In this report, we make an evaluation of the energy component of the central grid tariff and the use of marginal loss rates. We will first review the theory of optimum transmission tariffs and describes how the marginal loss rates are calculated and how these are used in combination with the system price in the current transmission costs. We describe the trend in the Swedish marginal loss schedule, and we refer the very short development in the PJM area (U.S. east coast). As the Swedish and the Norwegian system is apparently based on the same principles, we problematize the lack of harmonization, since the systems actually are now very different. There is little doubt that Statnett has refined and improved methods for calculating the marginal loss rates, while ensuring that bottlenecks are still handled fairly easy by a few large price areas on Nord Pool Spot. We discuss the relationship between loss-tariff and congestion management, and we recommend that Statnett considering using the area price as the settlement price. This will make it much easier for operators to take account of losses. (Author)
Publication Date:
Nov 15, 2010
Product Type:
Technical Report
Report Number:
SNF-22/10
Subject:
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; ELECTRIC POWER; DEMAND FACTORS; LOAD MANAGEMENT; RETAIL PRICES; PRICING REGULATIONS; ECONOMIC POLICY; NORWAY; SWEDEN; USA
OSTI ID:
1007295
Research Organizations:
Samfunns- og Naeringslivsforskning, Bergen (Norway)
Country of Origin:
Norway
Language:
Norwegian
Other Identifying Numbers:
Other: ISSN 0803-4036; TRN: NO1105035
Availability:
Commercial reproduction prohibited; OSTI as DE01007295
Submitting Site:
NW
Size:
56 p. pages
Announcement Date:
Mar 07, 2011

Citation Formats

Bjoerndal, Endre, and Bjoerndal, Mette. Evaluation of the energy component in the main grid tariff and the use of marginal loss rates; Evaluering av energileddet i sentralnettstariffen og bruk av marginaltapssatser. Norway: N. p., 2010. Web.
Bjoerndal, Endre, & Bjoerndal, Mette. Evaluation of the energy component in the main grid tariff and the use of marginal loss rates; Evaluering av energileddet i sentralnettstariffen og bruk av marginaltapssatser. Norway.
Bjoerndal, Endre, and Bjoerndal, Mette. 2010. "Evaluation of the energy component in the main grid tariff and the use of marginal loss rates; Evaluering av energileddet i sentralnettstariffen og bruk av marginaltapssatser." Norway.
@misc{etde_1007295,
title = {Evaluation of the energy component in the main grid tariff and the use of marginal loss rates; Evaluering av energileddet i sentralnettstariffen og bruk av marginaltapssatser}
author = {Bjoerndal, Endre, and Bjoerndal, Mette}
abstractNote = {In this report, we make an evaluation of the energy component of the central grid tariff and the use of marginal loss rates. We will first review the theory of optimum transmission tariffs and describes how the marginal loss rates are calculated and how these are used in combination with the system price in the current transmission costs. We describe the trend in the Swedish marginal loss schedule, and we refer the very short development in the PJM area (U.S. east coast). As the Swedish and the Norwegian system is apparently based on the same principles, we problematize the lack of harmonization, since the systems actually are now very different. There is little doubt that Statnett has refined and improved methods for calculating the marginal loss rates, while ensuring that bottlenecks are still handled fairly easy by a few large price areas on Nord Pool Spot. We discuss the relationship between loss-tariff and congestion management, and we recommend that Statnett considering using the area price as the settlement price. This will make it much easier for operators to take account of losses. (Author)}
place = {Norway}
year = {2010}
month = {Nov}
}