| Description: | Transmission right (FTR, SRA) |
See also
Transmission Right Property Reference for a detailed list of properties for
this class of object.
PLEXOS supports two styles of transmission right using the Transmission Right class:
- Financial Transmission Right (FTR)
- A FTR is a financial contract related to the price differential between two nodes. It is another instrument that
market participants can use to hedge against price differentials in the wholesale market. To create an FTR in PLEXOS:
- Add the transmission nodes acting as the 'from' and 'to' nodes in the FTR to the
Node From and
Node To collections of the Transmission Right respectively.
- Set the
Companies that own the FTR-you may use the property to split the
settlement of the FTR among multiple companies.
- Set the Quantity equal to the MW quantity of the FTR.
- Settlement Residue Auction (SRA)
- In a settlement residue auction, the future transmission settlement surpluses (transmission rents) are auctioned off
to market participants. This provides an opportunity for those participants to further hedge their position in the
market. In market simulation the SRA owned by a company can be entered into the model so that these are taken into
account when company-level reporting is done. To create a SRA in PLEXOS:
- Add the line or lines whose surpluses (
Rental) are the subject of the SRA.
- Set the
Companies that own the FTR-you may use the property to split the
settlement of the FTR among multiple companies.
- Under the Financial Contract Lines properties set the or property equal to the percentage of line rentals from
forward or backward respectively that is included in the contract.
FTR and SRA settlement will appear as additional contract revenue to the generating or purchasing company owner-equal to
the difference in nodal prices multiplied by the contract quantity. Note that these monies will also affect dynamic bidding
when using
Cost Recovery and LRMC since they will partially offset fixed cost and
other revenue requirements.