1 AIT Asian Institute of Technology

Economic dispatch with natural gas take-or-pay contract

AuthorThanawat Nakawiro
Call NumberAIT RSPR no.ET-02-09
Subject(s)Natural gas--Economic aspects
NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Environment, Resources and Development
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. ET-02-09
AbstractAt present, the Electricity Generating Authority of Thailand (EGAT) and Independent Power Producers (IPPs) generators consisting of combined cycles, thermals, and gas turbines, are obliged with the long-term natural gas supply contract with the Petroleum Authority of Thailand (PTT) public company in order to secure their power plant operations. This contract has a specific characteristic that the buyer should pay the seller at the minimum gas quantities whether or not it is consumed. This liability is called Take-or-Pay which presently is brown by EGAT for the gas utilization of both EGA T's and IPPs' power plants. Thus, this obligation is taken as a constraint on the economic dispatch responsible by EGA T's dispatch control center. In the near future, the liberalization in Gas Supply Industry (GSI) will be established along with the Electricity Supply Industry (ESI) liberalization. This GSI liberalization will have a direct impact on the EGA T's Take-or-Pay, since EGAT and IPP generators will have their own choices to purchase the natural gas from any petroleum suppliers and/or petroleum concessionaires through the PTT pipeline system with the cheaper price. In this research study, the network constrained economic dispatch program with Take-or-Pay constraint is simulated on the EGAT 424 bus system in the present vertically integrated Electricity Supply Industry (ESI) structure. It is expected that, after GSI liberalization, the natural gas price reduction could be passed through consumers in terms of the reduction in the fuel adjustment component (Ft) of the Thai electricity tariff in the existing vertically integrated ESI structure.
Year2002
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. ET-02-09
TypeResearch Study Project Report (RSPR)
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC))
Academic Program/FoSEnergy Technology (ET)
Chairperson(s)Weerakorn Ongsakul
Examination Committee(s)Surapong Chirarattananon; Ram M. Shrestha, Ram M.
Scholarship Donor(s)H.M. Queen Sirikit's Scholarship
DegreeResearch Report (M.Sc.) - Asian Institute of Technology, 2002


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