Multi Regional Trade
#2
From Wikipdedia, the free encyclopedia: A wheeling charge is a currency per megawatt-hour amount that a transmission owner receives for the use of its system to export energy.

In multi-regional models, one usually doesn't explicitly model any wheeling charges. Insofar as all the costs are already accounted in the model (investment costs, O & M costs, taxes, subsidies), there is no need to add any wheeling charges into the model, because it would mean double-counting the costs.  If Nepal imports, the Nepalese importers pay for the full price at the India/Nepal border, as determined by the model, and the Bangladeshian exporters only get the export price at the India/Bangladesh border, and vice versa. Thus, the wheeling charges are endogenously determined by the model.

I guess you could define such charges exogenously in some game theoretic, or agent-based models, but not so in TIMES.

[EDIT:| Of course, in some cases wheeling charges may not be imposed just for recovering the costs of transmission facilities, but for making extra profits. If that is the case, you could just add the charge as an extra cost/tax onto the transmission line between Bangladesh and Nepal. You can then separate out the extra cost/tax as an additional revenue in the results.
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Messages In This Thread
Multi Regional Trade - by vsaini - 08-05-2018, 05:21 PM
RE: Multi Regional Trade - by Antti-L - 08-05-2018, 05:41 PM
RE: Multi Regional Trade - by vsaini - 09-05-2018, 10:22 AM
RE: Multi Regional Trade - by vsaini - 09-05-2018, 11:43 AM
RE: Multi Regional Trade - by Antti-L - 09-05-2018, 01:11 PM

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