Efficient provision of electricity requires timely expansions of power transmission capacity. However, regulation does not always send the right signals to generate the required (and timely) investments. Therefore, it is important to evaluate the effect of alternative regulations on investment on transmission capacity. In this paper, considering regulated remuneration, we perform this evaluation with a behavioral simulation model of the transmission capacity expansion, in which capacity is endogenously determined by the demand/supply relation.

The Island Operation Capability service allows operators to split the system (in case of an accident, for instance) and operate as an integral isolated subsystem. This, in turn, increases reliability, resilience, efficiency, and reduces restoration times after a blackout in the islands power systems. The provision of this kind of service from distributed energy resources has recently been introduced in different power systems. This paper outlines a proposal for the implementation of Island Operation Capability in the Colombian electricity market.