Power transmission regulation in a liberalised context: an analysis of innovative solutions in South American markets
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After decades of reduced need for investment, transmission regulation is increasingly gaining relevance and complexity in liberalised power sectors, mainly due to the need to integrate sometimes distant and large-scale renewable energy sources. We identify the key principles that should be considered at three levels: transmission expansion, remuneration, and cost allocation.
The proposals we develop are built upon a review of the noteworthy experiences matured in South America, a region which, besides leading restructuring in the 1980s and 1990s, has with different levels of success always relied on innovative solutions to deal with this crucial regulatory challenge.
