Managing Uncertainty in Implementation Times of Competitively-Procured Transmission via Risk-Sharing and Winner Selection Functions

Managing Uncertainty in Implementation Times of Competitively-Procured Transmission via Risk-Sharing and Winner Selection Functions

IEEE Transactions on Power Systems, 2017

We develop a MILP framework to design risk-sharing and winner-selection mechanisms, applying a principal-agent approach to competitive bidding processes to select transmission agents, with attention to cases where uncertainties in implementation times of transmission facilities are an issue and regulators must deal with uncertain information regarding efficiency and risk-aversion of possible competitors. Conclusions are drawn with aid of case studies.

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