THE POWER GRID CONSOLIDATION AS A MEAN FOR EFFICIENCY IMPROVEMENT OF THIS ECONOMIC SECTOR

Author(s): Mozgovaya O.O., Sheval Y.V.

Rubric: Management

DOI: 10.21777/2587-554X-2020-4-93-103

Release: 2020-4 (35)

Pages: 93-103

Keywords: power grid, power grid consolidation, natural monopoly, impact on tariffs, cost’s subadditivity, gross revenue requirement, transmission tariffs

Annotation: This article studies the power grid consolidation in Russia as one of the means for its efficiency improvement. Prerequisites for the consolidation implementation are drawn. The Russian Federation local grid operators number trend data for 2014–2020 was analyzed and the reasons of the changes are determined. This article examines the consolidation impact on tariffs as a key indicator for assessment of the proceeding consolidation efficiency. We suggest a systematics of impacts on tariffs, and mark the factors, which determine the level of consolidation impact on the value of regional single pot transmission tariffs. The carried research confirmed a hypothesis, that the impact on tariff differ considerably under various forms and objects of consolidation. We represent basic approaches to control consolidation expense allowance for various power grid facilities in relation with favorable social-and-economic effects promoted by consolidation of that facilities.

Bibliography: Mozgovaya O.O., Sheval Y.V. THE POWER GRID CONSOLIDATION AS A MEAN FOR EFFICIENCY IMPROVEMENT OF THIS ECONOMIC SECTOR // Economics and Management. – 2020. – № 4 (35). – С. 93-103. doi: 10.21777/2587-554X-2020-4-93-103