Addition the Loss Aversion in Demand Response Model: Capacity Bidding Program of Thailand

Main Article Content

กัญญ์สุดา นิ่มอนุสสรณ์กุล [Kunsuda Nimanussornkul] จิราคม สิริศรีสกุลชัย [Jirakom Sirisrisakulchai] กฤษฎา แก่นมณี [Kritsada Keanmanee]

Abstract

This study modified the model from Aalami, Moghaddam and Yousefi (2010, pp. 245-246) by incorporating loss aversion and penalty to study the effectiveness of Capacity Bidding Program in Thailand. The modified models were used to simulate different scenarios of Capacity Bidding Program with peak load data from Provincial Electricity Authority in 2017. Economic results and strategy success indices were compared between ten simulated scenarios. We found that the Capacity Bidding Program with 3 baht/kWh incentive, 2 baht/kWh penalty, and loss aversion index equal two gave the highest value in strategy success index. In addition, the strategy success index varied with self and cross elasticities. If the self and cross elasticities decrease, the strategy success index also decreases. These results are consistent with Aalami, Moghaddam and Yousefi (2010, p. 249). Moreover, we found that the reduction of peak load depends on the level of loss aversion. If the loss aversion increases, the peak load reduction also increases. These results are different from those in Mohajeryami, Schwarz and Baboli (2015, p. 5) because the program which Mohajeryami, Schwarz and Baboli (2015, p. 2) used did not have penalty.

Keywords

Article Details

How to Cite
[Kunsuda Nimanussornkul]ก. น., [Jirakom Sirisrisakulchai]จ. ส., & [Kritsada Keanmanee]ก. แ. (2019). Addition the Loss Aversion in Demand Response Model: Capacity Bidding Program of Thailand. Journal of Business, Economics and Communications, 14(1), 81-97. Retrieved from https://www.tci-thaijo.org/index.php/BECJournal/article/view/119571
Section
บทความวิจัย (Research article)

References

1. Aalami, H. A., Moghaddam, M. P. and Yousefi, G. R. (2010). Demand response modeling considering interruptible/curtailable loads and capacity market programs. Applied Energy, 87(1), 243-250.

2. Aalami, H. A., Yousefi, G. R. and Moghaddam, M. P. (lecturer). (April 21-24, 2008). Demand response model considering EDRP and TOU programs. In Transmission and Distribution Conference and Exposition (pp. 1-6). Chicago: IEEE/PES.

3. Energy Policy and Planning office. (March 3, 2016). Demand response. Retrieved February 7, 2018, from http://www.eppo.go.th/index.php/th/electricity/ define-electricity/demand-response

4. Energy Policy and Planning office. (February 24, 2017). Emergency demand response program: EDRP. Retrieved January 20, 2018, from http://www.eppo.go.th/index.php/th/plan-policy/climatechange/thailand/eqmplan/item/11983

5. Jirapraditkul, V. (Lecturer). (September 6, 2017). Energy 4.0 the chance of Thai industries. In Energy Symposium 2017 (pp. 1-20). Bangkok: Centara Grand at Central Plaza Ladprao.

6. Jitmaneeroj, B. (2011). Behavioural finance. Thailand Economic and Business Review, 7(3), 12-15.

7. Khajavi, P., Arani, A. B. and Monsef, H. (Lecturer). (May 8-11, 2011). Identification of appropriate buses for implementation of smart grid in order to improve system efficiency. In 10th International Conference on Environment and Electrical Engineering (pp. 1-4). Rome: SGM Conference center.

8. Kobberling, V. and Wakker, P. P. (2005). An index of loss aversion. Journal of Economic Theory, 122(1), 119-131.

9. Marwan, M., Ledwich, G., Ghosh, A. and Kamel, F. (Lecturer). (Nov 13-16, 2011). Integrating electrical vehicles to demand side response scheme in Queensland Australia. In 2011 IEEE PES Innovative Smart Grid Technologies (pp. 1-6). Perth: The Pan Pacific Hotel.

10. Mohajeryami, S., Schwarz, P. and Baboli, P. T. (Lecturer). (Oct 4-6, 2015). Including the behavioral aspects of customers in demand response model: Real time pricing versus peak time rebate. In North American Power Symposium (NAPS) (pp. 1-6). Charlotte: The University of North Carolina.

11. News Term TCIJ. (March 5, 2017). Open the plan of Ministry of Energy use 'demand response' to reduce the electricity peak in 2017. Retrieved January 24, 2018, from https://www.tcijthai.com/news/2017/3/scoop/6810

12. PG & E. (February 21, 2013). Capacity bidding program. Retrieved February 26, 2018, from https://www.pge.com/en_US/business/save-energy-money/energy-management-programs/third-party-programs/capacity-bidding.page

13. Pongwiritthon, R., Chongesiriroj, S., Pakvipas, P. and Kantawongwan, B. (2017). Information system development for community management on hydroelectric energy: Doi Pu Muen. Journal of Business, Economics and Communications, 12(2), 79-92.

14. Provincial Electricity Authority. (July 31, 2017). Electricity tariffs. Retrieved January 1, 2018, from https://www.pea.co.th/Portals/0/Document/Rate2015Update.pdf

15. Thaler, R. H. (2016). Behavioral economics: New economics look at people far more than economic animals. (Tulayasathien, S. and Kusolvititkul, P., Trans.). Bankok: openworlds. (Origianl work published 2015).

16. Zarei, A. (2012). Evaluation of emergency demand response programs based on power model in power systems. International Journal of Academic Research in Applied Science, 1(4),
35-46.