scholarly journals The generation revenue and demand payment assessment for pool based market model in Malaysia electricity supply industry

2019 ◽  
Vol 8 (4) ◽  
Author(s):  
Zuraidah Ngadiron ◽  
N. H. Radzi ◽  
M. Y. Hassan
Keyword(s):  
Economic Benefits ◽  
Test System ◽  
Peninsular Malaysia ◽  
Market Model ◽  
Electricity Supply ◽  
Electricity Supply Industry ◽  
Proposed Model ◽  
Pool Model ◽  
Supply Industry ◽  
Conceptual Study

The objective of this paper is to address the economic benefits in term of generation revenue and demand payment for the pool based market model in Malaysia electricity supply industry (MESI). In pool market model, there are issues on the benefit of the generators such as too high system marginal price (SMP) during peak demand and no revenue during low demand. Therefore, conceptual study for two bus test system in MESI involving four generators around Peninsular Malaysia is conducted to perform the economic analysis in term of generation revenue and demand assessment considering existing single buyer model and pool based market model, i.e., pool model, spot market model and the proposed model, in order to identify which market model is superior. As a result, the proposed model managed to decrease the demand payment as it is proportional to generation revenue, even though the generation revenue is at intermediate value and succeed to increase the low and medium generator’s revenue.

scholarly journals Generation Revenue Assessment in Malaysia Electricity Supply Industry

2015 ◽  
Vol 773-774 ◽  
pp. 481-485
Author(s):  
Zuraidah Ngadiron ◽  
N.H. Radzi ◽  
Zaris Yassin
Keyword(s):  
Electricity Market ◽  
Imperfect Competition ◽  
Market Model ◽  
Electricity Supply ◽  
Wholesale Market ◽  
Market Models ◽  
Electricity Supply Industry ◽  
Supply Industry ◽  
Pool Market

Restructuring of electricity supply industry had begun in early 20th centuries. Malaysia Electricity Supply Industry (MESI) has aimed to change its structure to a wholesale market model in 2005. Started in 1992, Independent Power Producers (IPPs) were introduced and since then MESI had applied the Single Buyer Model until today. Even though, the Single Buyer Model had passed several process of evolution, it still a form of imperfect competition in which there is only one buyer and many sellers of a product. Therefore, other alternatives of electricity market model for MESI have been proposed, in order to carry on the MESI previous plan towards restructuring. This paper discusses three electricity market models; Single Buyer Market Model, Pool Market Model and Hybrid Market Model. The case study is carried out to compare the three market models in term of generation revenue. Data from 14 IPP and load profiles in MESI is used for the case study and the result will be discussed.

scholarly journals Review on Restructuring of Malaysia Electricity Supply Industry

2015 ◽  
Vol 773-774 ◽  
pp. 476-480 ◽  
Author(s):  
Zuraidah Ngadiron ◽  
N.H. Radzi ◽  
Zaris Yassin ◽  
Izzati Amin
Keyword(s):  
Literature Review ◽  
Electricity Market ◽  
Market Model ◽  
Functional Structure ◽  
Electricity Supply ◽  
Electricity Supply Industry ◽  
Playing Field ◽  
Global Trend ◽  
Supply Industry ◽  
Pool Market

The global trend in electricity market has put pressure for Malaysia to restructure industry to be more reliable, transparent, efficient and sustainable. Besides, centralized power purchasing units that exist within a vertically-integrated entity have been criticized for failure to provide a truly playing field for the player in the generation sector competing to sell power to the single buyer. The Malaysian Electricity Supply Industry (MESI) has gone through various stages of reform and has evolved from predominantly single entity to a multiplayer industry particularly in the generation sector. This literature review covers the evolution of MESI from the introducing of the Independent Power Producers (IPPs), issues surrounding and implementation of single buyer which had continued until now. The MESI reformed a single buyer functional structure and framework is also included. However, this model does not offer transparent competition. Thus, other alternative electricity market model, pool/hybrid market model could be applied in order to carry on the MESI previous plan towards restructuring. The significance and relevance of the pool market model and its advantages in the Malaysian context is also discussed.

Sign in / Sign up

Export Citation Format

Share Document