A proposal for annual power fee in Thailand based on electricity tracing methodology

T. Limpasuwan, J. W. Bialek, W. Ongsakul, B. Limmeechokchai

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

It is envisaged that by 2003 electrical energy in Thailand will be freely traded under the new electricity supply industry (ESI) structure. The transmission use of system charge will be based on the short run marginal cost (SRMC). The well-known issue with the SRMC is its inability to recover the embedded cost of the transmission system. To recover such cost, the Electricity Generating Authority of Thailand (EGAT) proposed an annual power fee based on the proportion of generation and demand in each zone. As such fee gives a crude signal towards investment in a particular zone, in this paper application of the electricity tracing methodology has been investigated. Tracing-based fee can be seen as a refinement of the crude fee based on the proportion of zonal generation and demand as it takes into account how the zonal imbalance of generation and demand loads up transmission facilities in other zones. In addition, the paper provides an alternative combined zonal and nodal annual power fee where the nodal component of the annual power fee provides an additional signal towards a balanced location of generation and demand within a zone. Analysis of the results for Thai system has confirmed that the proposed methodology provides intended signals.

Original languageEnglish
Pages (from-to)219-226
Number of pages8
JournalElectric Power Systems Research
Volume64
Issue number3
DOIs
Publication statusPublished - Mar 2003
Externally publishedYes

Keywords

  • Electricity tracing methodology
  • Short run marginal cost
  • Thailand

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