Multi Echelon Distribution Model for Electric Market Deregulation Collaboration Strategy in East Kalimantan

Abstract

Electric market deregulation aims to provide flexibility for customers to have many suppliers and low prices. However, market deregulation also provides opportunity for certain parties to manipulate supply, so there is a scarcity of products that result in price increases. Therefore, this research proposes a collaborative strategy for electricity market deregulation using the Multi Echelon distribution model applied in East Kalimantan with dummy data. Collaboration strategy made based on optimization of mathematical models in two stages and three scenarios. The simulation was carried out using Excel Solver covering three regions, dynamic time and estimated price fluctuations over three periods. As a result, Gencos gets the biggest profit when serving basic load. Whereas wheeling occurs, the D4 region is a strategic area that generates the largest profit compared to the D1 and D6 regions.