Analysis on single buyer market model and pool market model in deregulated electricity market

Since 2005, Malaysia Electricity Supply Industry (MESI) planned to shift its structure to a wholesale market model. Initially, the government introduced Independent Power Producers (IPPs), and since then, MESI has applied to a single buyer market model that continues till now. However, this model approach is lack of competition as it is supposed to. Therefore, this research presents conceptual analysis of a single buyer market model and the pool based market model. The purpose of this research is to address the economic benefits in term of generation revenue and demand payment in MESI. The research analysis consists of two bus test system in MESI involving four generators around Peninsular Malaysia considering existing single buyer model and pool based market model, i.e., pool model and spot market model. The results have shown that the pool market model ensures the intermediate value of total generation revenue and decreased the demand payment as it is proportional to the generation revenue.