Nodal Pricing: The Theory and Evidence of Indonesia Power System

Authors

  • Dzikri Firmansyah Hakam 1. Centre for Energy, Petroleum and Mineral Law, and Policy, University of Dundee, Scotland, United Kingdom 2. PT. PLN (Persero), Jakarta, Indonesia http://orcid.org/0000-0002-7234-465X

Abstract

This research presents a stylised nodal pricing model of Indonesia power system with engineering-economic constraints. The modelling in this research adopts the 8 nodes stylised model for the Sumatra power system, by incorporating generation, transmission and power system stability constraint. Nodal pricing analysis is performed based on Direct Current (DC) Optimal Power Flow (OPF) and marginal cost calculation in each node. This research is the first ever to estimate nodal prices in the Indonesian electricity market. Nodal pricing model in this paper provides a proper investment signals for Indonesian stakeholder in performing generation expansion planning.

Keywords: nodal pricing, Sumatra power system, stylised model

JEL Classifications: C610, D410, D470, D600

DOI: https://doi.org/10.32479/ijeep.6747

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Author Biography

Dzikri Firmansyah Hakam, 1. Centre for Energy, Petroleum and Mineral Law, and Policy, University of Dundee, Scotland, United Kingdom 2. PT. PLN (Persero), Jakarta, Indonesia

1. PhD Candidate, CEPMLP, University of Dundee2. Analyst, PT. PLN (Persero)

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Published

2018-10-28

How to Cite

Hakam, D. F. (2018). Nodal Pricing: The Theory and Evidence of Indonesia Power System. International Journal of Energy Economics and Policy, 8(6), 135–147. Retrieved from https://econjournals.com/index.php/ijeep/article/view/6747

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