An investigation into the costs of active power transmission transactions and methods for evaluation of costs

Master Thesis


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University of Cape Town

The power supply industry of South Africa is currently engaged in the process of restructuring, in a move from traditional vertically integrated and regulated structures to the unbundled, deregulated marketing of electric energy and power. Since this is a new process for South Africa, the investigation was commissioned with the aim of introducing this new area of research, to get an international perspective on the topic, and to build up a theoretical background for further studies. In this new deregulated environment, the transmission segment of the supply industry is seen as an independent business, which can provide services at the appropriate terms and conditions. A transmission utility offers services at costs that can be evaluated by various methods. In this context, the thesis has three objectives. The first objective of the thesis is to consider different types of transmission services and costs associated with these services. The second objective is to analyse existing methods for evaluation of costs of transmission transactions and to define advantages and drawbacks of these methods. The third objective of the thesis is to test selected methods for illustration by means of case studies.

Includes bibliographical references.