Proposal framework
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This proposal discusses a framework for studying electricity use behavior and cost allocation in Thailand. It analyzes demand patterns by customer type and proposes allocating generation, transmission, and distribution costs based on peak demand patterns. The objective is to determine an optimal electricity tariff structure that minimizes total offered costs while considering all technological constraints and relevant government policies.
Proposal framework
- 1. Proposal Framework The Study on Electricity Use Behavior and Cost Allocation due to the Use Pattern Presented by… Chulalongkorn University 23 July 2012
- 2. Framework Government Policies c0 p0 + Supply Demand Q0 • Demand behavior (given Q0) • Residential (d1) • Small general service (d2) • Medium general service (d3) • Large general service (d4) • Specified business service (d5) • Non-profit organization (d6) • Water pumping (d7)
- 3. Cost allocation concept C1,d1 p1,d1 C1,d2 p1,d2 C1,d3 p1,d3 C1 C1,d4 p1,d4 Mix + C1,d5 p1,d5 Supply Demand C1,d6 p1,d6 C1,d7 p1,d7 Given Q0,P0 Allocation based on peak pattern of demands (users behavior)
- 4. Cn,d1 pn,d1 Cn,d2 pn,d2 Mix 1 Mix 1 Cn,d3 pn,d3 Mix 1 Mix 1 Mix 1 Supply Cn,d4 pn,d4 + Objective function: Cn,d5 pn,d5 Min Offered Cost Decision variable: x=power plant Subject to: Cn,d6 pn,d6 all technology constraints Cn,d7 pn,d7 Pn, ∑Qn
- 5. Power Plant Information Player EGAT, IPP, SPP, VSPP, Import Technology Thermal, Combine-cycle, Co-generation, Gas turbine, Hydro, Solar, Wind, Geothermal, Peak Plant Nuclear, etc. Fuel Natural gas, Lignite, Coal, Diesel, Fuel oil, Biomass, Biogas, etc. Plant Capacity xx MW Supply Availability 70% Intermediate Plant Plant age 25 yr Lifetime 30 years Investment cost xx baht/MW Operating and xx baht/kWh maintenance cost Base Plant Heat rate Fuel cost
- 6. “Generation” Peak allocation Supply Total cost = Wholesale Power Purchas Mechanism = capacity payment + energy payment + ancillary service payment (unit: Baht/kWh) Allocation rates is allocated investment cost according to the demand behavior. (“Demand Response Rate”)
- 7. “Transmission Charge and Distribution Charge” Supply Total cost = use of system capacity charge + use of system energy charge + connection charge (unit: Baht/kWh) = allowed return + depreciation + O&M/ admin cost + cost of network loss + connection cost
- 8. “Other cost components” • System Operation and Single Buyer • Retail cost • PSO, USO, Adder/ FIT, PDF 97(3) • Tariff adjustment (∆EP, ∆PDF 97) Supply Baht/ kWh
- 9. Government Policies Supply load management Supply Demand load pattern (by customer type) “Electricity Tariff Structure”