Transmission Access Pricing for Renewable Energy Generation

Abstract

The contribution of transmission access pricing in promoting renewable energy is akin to the role of a pit crew member in a Formula 1 race. It is out of the spotlight, but can make or break the outcome. This study attempts to refocus that spotlight onto the less-seen role transmission access pricing plays. In doing so, the study derives from real issues faced by the executing agency of an ADB-funded loan program in the upgrading of transmission system capacity in Himachal Pradesh, India. Himachal Pradesh is a small, mountainous state in India's northern Himalaya region and has a policy mandate to maximize its considerable hydropower potential.