The generation revenue and demand side assessment in pool-based market model for competitive electricity markets

Abstract

Nowadays, many developing country is enhancing its electricity supply industry to experience deregulation and restructuring to become more straightforward, productive and competitive environment. Changing its structure to retail or wholesale market model is one of the ways in order to carry on the planning towards restructuring. The pool market model is recognized as a conceivable model. It is a safe option to be more competitive, and transparent electricity supply industry. Even though, the pool market model is amongst the most preferred electricity market model, there are issues on the benefit of the generators involved. Hence, this paper discusses the pricing issue in pool based market model. In the proposed model, the approach of minimum generation capacity payment, and base load demand sharing in the single auction power pool are introduced with the efficiency, and the electricity price offered by generators are taken into account. An economic analysis is performed to highlight the benefits of the proposed model compared with other pool based market model in term of generation revenue and demand payment.