Pool-based electricity market model for Malaysia electricity supply industry considering minimum generation capacity payment

Malaysia is improving its electricity supply industry to become more transparent, productive and competitive with the introduction of the single buyer market model. However, since the electricity demand is lower than the reserved capacity, the implementation of this market model does not provide...

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Main Author:	Ngadiron, Zuraidah
Format:	Thesis
Language:	English English English
Published:	2018
Subjects:	TJ163.13-163.25 Power resources
Online Access:	http://eprints.uthm.edu.my/286/1/24p%20ZURAIDAH%20NGADIRON.pdf http://eprints.uthm.edu.my/286/2/ZURAIDAH%20NGADIRON%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/286/3/ZURAIDAH%20NGADIRON%20WATERMARK.pdf
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id	my-uthm-ep.286
record_format	uketd_dc
spelling	my-uthm-ep.2862021-07-21T02:27:27Z Pool-based electricity market model for Malaysia electricity supply industry considering minimum generation capacity payment 2018-06 Ngadiron, Zuraidah TJ163.13-163.25 Power resources Malaysia is improving its electricity supply industry to become more transparent, productive and competitive with the introduction of the single buyer market model. However, since the electricity demand is lower than the reserved capacity, the implementation of this market model does not provide transparent competition as Tenaga Nasional Berhad (TNB) has suffered massive profit erosion because of monthly capacity payment that should be paid to Independent Power Producers (IPP) regardless of electricity usage. Since 2005, the Malaysia Electricity Supply Industry (MESI) has planned to change to the pool market model as it is recognized as a model which could overcome the shortcomings of the single buyer market model. However, there are a few issues on introducing the pool model such as price fluctuation and market power exercises which could influence the welfare of generators as well as the consumers. Some researchers have developed pool-based market models with the aim to overcome the aforementioned issues, but the efficiency and the energy price offered from the generators are not considered. Therefore, this research developed a model introducing the minimum generation capacity payment involving the efficiency of the generators and base load sharing approaches. The proposed model was tested using the 2, 16 and 24 generator test systems involving IPPs and Tenaga Nasional Berhad Generation (TNBG) around Peninsular Malaysia for an economic analysis to highlight the merits of the proposed model in terms of generation revenue and demand payment. The results have shown that the proposed market model ensures the intermediate value of total generation revenue which decreased from 1.99% to 4.67% and 3% to 9.62% during the weekday and weekend, respectively. The demand payment decreased as it is proportional to the generation revenue. However, this proposed model did not consider market uncertainties. This findings can be applied for MESI and globally, in assisting and creating a new policy to achieve a better electricity market model. 2018-06 Thesis http://eprints.uthm.edu.my/286/ http://eprints.uthm.edu.my/286/1/24p%20ZURAIDAH%20NGADIRON.pdf text en public http://eprints.uthm.edu.my/286/2/ZURAIDAH%20NGADIRON%20COPYRIGHT%20DECLARATION.pdf text en staffonly http://eprints.uthm.edu.my/286/3/ZURAIDAH%20NGADIRON%20WATERMARK.pdf text en validuser phd doctoral Universiti Tun Hussein Onn Malaysia Fakulti Kejuruteraan Elektrik dan Elektronik
institution	Universiti Tun Hussein Onn Malaysia
collection	UTHM Institutional Repository
language	English English English
topic	TJ163.13-163.25 Power resources
spellingShingle	TJ163.13-163.25 Power resources Ngadiron, Zuraidah Pool-based electricity market model for Malaysia electricity supply industry considering minimum generation capacity payment
description	Malaysia is improving its electricity supply industry to become more transparent, productive and competitive with the introduction of the single buyer market model. However, since the electricity demand is lower than the reserved capacity, the implementation of this market model does not provide transparent competition as Tenaga Nasional Berhad (TNB) has suffered massive profit erosion because of monthly capacity payment that should be paid to Independent Power Producers (IPP) regardless of electricity usage. Since 2005, the Malaysia Electricity Supply Industry (MESI) has planned to change to the pool market model as it is recognized as a model which could overcome the shortcomings of the single buyer market model. However, there are a few issues on introducing the pool model such as price fluctuation and market power exercises which could influence the welfare of generators as well as the consumers. Some researchers have developed pool-based market models with the aim to overcome the aforementioned issues, but the efficiency and the energy price offered from the generators are not considered. Therefore, this research developed a model introducing the minimum generation capacity payment involving the efficiency of the generators and base load sharing approaches. The proposed model was tested using the 2, 16 and 24 generator test systems involving IPPs and Tenaga Nasional Berhad Generation (TNBG) around Peninsular Malaysia for an economic analysis to highlight the merits of the proposed model in terms of generation revenue and demand payment. The results have shown that the proposed market model ensures the intermediate value of total generation revenue which decreased from 1.99% to 4.67% and 3% to 9.62% during the weekday and weekend, respectively. The demand payment decreased as it is proportional to the generation revenue. However, this proposed model did not consider market uncertainties. This findings can be applied for MESI and globally, in assisting and creating a new policy to achieve a better electricity market model.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Ngadiron, Zuraidah
author_facet	Ngadiron, Zuraidah
author_sort	Ngadiron, Zuraidah
title	Pool-based electricity market model for Malaysia electricity supply industry considering minimum generation capacity payment
title_short	Pool-based electricity market model for Malaysia electricity supply industry considering minimum generation capacity payment
title_full	Pool-based electricity market model for Malaysia electricity supply industry considering minimum generation capacity payment
title_fullStr	Pool-based electricity market model for Malaysia electricity supply industry considering minimum generation capacity payment
title_full_unstemmed	Pool-based electricity market model for Malaysia electricity supply industry considering minimum generation capacity payment
title_sort	pool-based electricity market model for malaysia electricity supply industry considering minimum generation capacity payment
granting_institution	Universiti Tun Hussein Onn Malaysia
granting_department	Fakulti Kejuruteraan Elektrik dan Elektronik
publishDate	2018
url	http://eprints.uthm.edu.my/286/1/24p%20ZURAIDAH%20NGADIRON.pdf http://eprints.uthm.edu.my/286/2/ZURAIDAH%20NGADIRON%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/286/3/ZURAIDAH%20NGADIRON%20WATERMARK.pdf
_version_	1747830573475299328

Pool-based electricity market model for Malaysia electricity supply industry considering minimum generation capacity payment

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