Abstract:
Providing the right incentives for investment continues to be a major source of concern in the New Zealand electricity sector. This seminar outlines a decentralised incentive mechanism designed to encourage transmission investment within a competitive market environment based on a system that rewards investors according to the additional social welfare they create. This mechanism is then compared with a centralised system in which all decisions are made by a single transmission planner.To read the paper this presentation is based on click here.
