A thesis submitted in partial fulfillment of the requirements of Master of Engineering, School of Engineering and Technology

Thesis (M.Eng.) - Asian Institute of Technology, 1990

This study calculates marginal costs of electricity supply. Mixed integer programming model has been used in the expansion planning analysis. Seasonal marginal capacity and energy costs at generation and various voltage levels of transmission and distribution have been calculated . For the calculation of the marginal energy cost at generation level a linear programmine simulation model has been used. Th e long-run mareinal capacity costs have been calculated as the average incremental cost of the plant. These are the strict margi.nal costs of supply without consumer related costs. Th e marginal capac.lty costs for all voltage levels at peak periods are found to be significantly higher than the capacity charges in the existine rates. But the energy charge in the existing rate structure is higher t h an the average marginal energy costs.