Decision of Merchant Transmission Investment Under Uncertainty

In the process of the merchant transmission investment, regulation policy has brought uncertainty to the realization of financial transmission right. Investors should consider the uncertainty brought about by the electricity market when they make decision. These uncertainties will lead to a wide range of risks. The paper will discuss varieties of risk factors under uncertainty which merchant transmission investors are facing. Risk decision model and specific methods to quantify and avoid risk are provided to help the investors make decision.