1 AIT Asian Institute of Technology

Electricity transmission pricing under competitive environment

AuthorPeerapat Vithayasrichareon
Call NumberAIT Thesis no. ET-02-7
Subject(s)Electric power transmission--Prices--Thailand
NoteA thesis 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 StatementThesis ; no. ET-02-7
AbstractThe Electricity Supply Industry in Thailand is undergoing one of the most significant reforms, changing from a monopoly market to a competitive market. More private sector participation will be encouraged with a goal to increase the competitiveness in electricity generation business in Thailand. Such competition will bring lower prices and more efficient operation and better services for electricity customers thus resulting in greatest benefit to users of electricity. By the year 2003, Thailand Electricity Supply Industry (ESI) is expected to operate under a full competitive environment with the electricity pool in operation. Nevertheless the remaining issue which need to be settled before deregulation takes place is the subject of electricity transmission pricing. This study proposes a transmission pricing scheme for Thailand focusing on the economic efficient and revenue recovery aspects. This scheme consists of two components: Transmission Use of System (TUOS) charge and annual power fee. The TUOS charge is variable and based on the SRMC while the annual power fee is based on the capital cost of transmission system. This proposed method is fairly effective as it provides geographical signal to both generators and consumers resulting in economically efficient pricing as well as generate sufficient revenue for the owner of the transmission network to recover the investment cost. This study also provides an analysis of electricity price in Thailand under the competitive environment based on the locational marginal cost (LMP) for the year 2003. Zonal pricing scheme is implemented based on the nodal pricing. Zonal prices vary geographically to reflect locational value of electricity in each hour depending on the system conditions, thus provides the correct price signals an promote economic efficiency. The LMP is then used as a foundation to implement the method for transmission pricing.
Year2002
Corresponding Series Added EntryAsian Institute of Technology. Thesis ; no. ET-02-7
TypeThesis
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)Shrestha, Ram M.
Examination Committee(s)Weerakorn Ongsakul ;Kumar, S. ;Bhattacharyya, S.C.
Scholarship Donor(s)Government of France
DegreeThesis (M.Eng.) - Asian Institute of Technology, 2002


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