Financial Transmission Rights: Analysis, Experiences and Prospects (Lecture Notes in Energy, 7)

Whilst financial rights have appeared as a successful ingredient in North-American power markets, they have their shortcomings both theoretically and in practice. Financial Transmission Rights: Analysis, Experiences and Prospects present a systematic and comprehensive overview of financial transmission rights (FTRS).

Following a general introduction to FTRs, including chapters to explain transmission pricing and the general properties of FTRS, experts in the field provide discussions on wide scope of topics. These include:

Varying perspectives on FTRS: from electrical engineers to economists,

Different mathematical formulations of FTRS

Financial Hedging using FTRS, and

Alternative solutions to FTRs

The detail, expertise and range of content makes Financial Transmission Rights: Analysis, Experiences and Prospect  an essential resource for electricity market specialists both at academic and professional levels.

€œThis is THE BOOK we were all expecting to address all key €˜Financial Transmission Rights€ issues. It is comprehensive and reader friendly. You can pick at will in its menu: more or less theory, a bit of maths or none, empirical review of real cases or numerical simulations of many feasible options. Big names rally there to delight you like: Hogan , Oren, Perez-Arriaga, Smeers, Hobbs and€¦ Rosell³n. More than a must read: a light house, a map and a survival kit.€

 Jean €“ Michel Glachant, Director Florence School, Holder Loyola de Palacio Chair, Chief-editor Economics of Energy & Environmental Policy.

"In the last two decades, economists have developed a better understanding of the impact of financial rights on risk management, market power and network expansion in electricity markets, while power systems have experimented with such rights. Striking a good balance between academics and practitioners, always at the frontier of the field, written by the best experts, this volume is essential reading for all those- power systems€ managers and users, regulators, students and researchers- who want to understand the new electricity environment and predict its evolution."

Jean Tirole, Toulouse School of Economics and Institute for Industrial Economics (IDEI)

Further comments inside.