Transmission planning in deregulated systems: a model for developing countries

Transmission planning has been one of the major issues in deregulated systems in the West. In developing countries, the transmission system is a key sector of the national economy where there is a need for the consolidation of a national grid, which is at a relatively early stage of its evolution. There are important differences in other fundamental matters as well. This paper synthesizes a model of reform and develops a strategy for long term transmission planning while still retaining strategic control of grid development in the hands of the state. An investment strategy for the transmission system expansion is presented, along with the impact of transmission pricing on the system planning process.