Transmission Congestion Management During Transition Period of Electricity Deregulation in Thailand

Transmission congestion management (TCM) plays a significant role in power-system operation under today´s deregulated environment. Its two major functions are to maintain power system within security limits and to collect money from market participants paying back to transmission-grid investors. The TCM issue has been widely debated during the past decade. It is still an extensively discussed opened issue in the current competitive environment. In the United States, Pennsylvania New Jersey Maryland (PJM) with nodal congestion management based on renowned locational marginal price and the Electric Reliability Council of Texas with zonal congestion management are two successful stories of TCM under different operation schemes. Although the PJM model is adopted in some developing countries where the processes of restructuring of Electricity Supply Industry is still under the beginning phase, many concerns, such as advances in an information technology, energy security, social equity, price volatility, and the need to subsidize poor consumers, are necessitate factors to be considered before the establishment of TCM and settlement processes. Taking into account the above concerns, this paper proposes a TCM model for the electrical utility industry in Thailand during the transition period to the deregulated environment.