Business Solution for Demand Response in Thailand Grid Modernization Development

Abstract

This research focused on the business solution for DR in Thailand for Thailand’s utilities and policymakers. The key success factor in the DR business is DRR collection by a LA. This research proposes the future energy market, the future DR business, LA organization, the new role of future DR energy market in the future energy market composed of SO, TSO, DRCC, DSO, LA#1, LA#2, and DRR, the DR market size expectation, the SWOT analysis, the business model canvas, and the LA#1 financial analysis for the development of LA#1 business solution in Thailand’s energy market.

Thailand’s DR market size expectation is 1.4 GW - 2.5 GW by 2021-2037 which DR can replace the peaking power plant. The SWOT analysis shows the strengths, opportunities, weaknesses, and threats of Thailand’s utilities on DR business. The business model canvas shows activities related to LA#1 on the LA business operated by Thailand’s utilities. LA#1 obtains benefits from the commission of CP and EP paid by DRCC. DLC and EDRP are DR programs managed by LA#1. LA#1 obtains income from 30 percent of incentive paid to DRR by DRCC and consulting fee for a DRR. LA#1 invests in infrastructure costs and pays monthly operation costs. NPV and IRR of LA#1 are 175.43 M฿ and 10 percent, respectively shown in the financial analysis. LA#1 can get more benefits by deducting the investment and operation cost and by obtaining more benefits by the service the LAMS to a private company.

Finally, Thailand utilities have to modernize their electrical system using smart grid technology. DR is one of the key technologies that reduce electricity usage in the high-demand period reduced investment costs in the generation, transmission, and distribution system. Furthermore, LA business is a new business of Thailand’s energy market which LA can manage DRR of the DR market. Accordingly, DR are an important role in the electrical system provided by Thailand’s utilities so that their electrical network will be modernized by using smart grid technology.

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