Abstract
This paper proposes a hybrid of transportation and economic dispatch (TED) model to perform a joint optimisation of both production and transmission of the power plant. By this model, we aim to reduce the total cost of power allocation. The model is applied to solve a problem of electricity allocation in East Kalimantan, Indonesia. The main problems of electricity in East Kalimantan are the power outages, high prices, and high emission despite the abundance of gas and coal. The proposed model attempts to reduce these problems altogether. Four scenarios are applied to find the best possible solution. The scenarios are using power generated by: 1) the state electricity company (SEC); 2) the SEC and the independent power producer (IPP); 3) the SEC and a rental power plant (Rent); 4) the SEC and a private company (PC). The experiments show that using power generated by SEC + IPP produces the cheapest fuel cost and minimum outages. While SEC + Rent produces the smallest emissions and outages. There is no scenario that can reduce outages, prices, and emissions simultaneously.
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