Planning to expand?

The appropriate functioning of the transmission network of an electric energy system is critical for an electricity market to thrive. Moreover, since the annual cost (investment and operation) of a transmission network is a small percentage of the cost of the energy (and ancillary services) traded throughout the year in the market, and since a transmission problem might have dramatic effects on trade disruption, a well-managed and properly planned transmission network is a key requirement in a well-designed electricity market. The paper describe the authorspsila view of the fundamental ingredients of transmission expansion planning within the framework of an electricity market including competitive generating companies and competitive load-serving entities as well as independent producers and consumers. It was assumed the transmission network to be a centrally managed entity pursuing maximum social welfare. The paper illustrates the transmission expansion planning methodology using the transmission network of mainland Spain, managed by Red Electrica de Espantildea (REE), the transmission system operator (TSO) of the electricity market of mainland Spain (EMMS). It should be noted that REE is also the system operator of this market.