1 AIT Asian Institute of Technology

Efficient nodal and zonal pricing of electricity :the case of Sri Lanka

AuthorLiyanage, Migara Haripriya
Call NumberAIT Thesis no.ET-03-1
Subject(s)Electricity--Prices--Sri Lanka
NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering
PublisherAsian Institute of Technology
AbstractElectricity supply industry of Sri Lanka is heading for transition. The issue of tariff remains a key issue. Economically efficient nodal and zonal prices are proposed during this study. This is referred as an economically efficient tariff because efficient suppliers will receive more profits optimizing the charge from customers. The electricity generation and transmission system of Sri Lanka for 2005 were simulated and nodal prices were obtained. Optimum power flow (OPF) was used as a tool to obtain the nodal prices. From the nodal prices and other parameters, electrically homogenous regions were identified and a suitable zonal classification was proposed. Based on this zonal classification, zonal price and other parameters were analyzed. The nodal prices represent short run marginal costs of the system. Short run marginal costs are not sufficient to cover the revenue requirements of the utility. Revenue from nodal pricing to Transco and the generators a re c alculated. It i s exp lo red whether the revenue requirements are met from nodal pricing. Nodal pricing might not be implemental in a country like Sri Lanka due to many reasons. Other strategic implications of OPF based nodal prices are discussed. A new dispatch method based on OPF is proposed. Finally, the policy options for practical tariff rate setting are discussed.
Year2003
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)Bhattacharyya, Subhes C.;Mithulananthan, Nadarajah
Scholarship Donor(s)Royal Thai Government
DegreeThesis (M.Eng.) - Asian Institute of Technology, 2003


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