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Pricing of Electricity Transit in Transition Countries

bMr. Abror Shamsiev - 25 November 2013

Pricing of Electricity

Given the development of power networks in all energy systems within the Unified Power System of Central Asia (UPS CA), conditions have been created urgently calling for a revision of the existing Electricity Transit Methodology.

The main reason for such a revision is that with the emergence of multi-circular schemes, the methodology principles for determining transit routes has stopped working. An attempt to have the existing transit methodology modified by a UPS CA working group was not productive. Therefore, the Coordination Power Council of Central Asia tasked the Coordination Dispatch Centre Energiya to develop a new methodology to mainstream global practices.

The purpose of the report is to analyse issues related to electricity transit in selected countries if Central and South Asia, to compare existing transit pricing methodologies and to make recommendations to the respective decision making bodies in the region. This report reviews both existing and proposed approaches to the pricing of electricity transit. As a result, the ITC-model (inter-TSO compensation for transit) used by the European Network of Transmission System Operators for Electricity was selected as the most promising solution for UPS CA.

An ITC-model has been developed for the existing UPS CA pattern, allowing for any complexity of configuration, including those involving new connections. The ITC-model calculations have been compared with UPS CA actual data for 2012, displaying a high degree of coincidence and giving rise to a recommendation that the model so developed be applied in UPS CA practices.


The contents of this work are the author's sole responsibility. They do not necessarily represent the views of the Energy Charter Secretariat or any members of the Energy Charter Treaty.