Economic valuation of Efficient Pricing: Case study of Java Bali Power System

Java Bali power system is the largest interconnected power system in Indonesia and currently still applied the regulated uniform electricity pricing. This research determines the efficient pricing of electricity across space and time in Java Bali power system. The objective of this study is to propose nodal pricing in the power system and then to calculate the economic welfare. A detailed analysis of electricity prices, nodal demand, nodal supply, transmission load flow and congestion are investigated in this study. The application of efficient pricing in the power system affects decision making in investment planning and mitigates market power. Therefore, nodal pricing implementation will be beneficial for electricity market designers and stakeholders in Indonesia.