Electricity market models in restructured electricity supply industry

In the new era of modernity, the competitive environment has spread widely into all sectors including the electricity market. The evolution of electricity market model began since 1980s. A number of electricity market models have been introduced and each model is designed appropriately with its local condition. The selection of the model used depends on the justification determined by power utilities or regulatory policies taking into account the technical and economic aspect point of view. This paper discusses two electricity market models; single buyer market model and pool market model. A case study is carried out to compare the two market models in term of generation revenue. The Independent Power Producers (IPPs) and load profiles in Malaysia Electricity Supply Industry (MESI) is used for the case study.