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Malaysia’s electricity market structure in transition
Affiliation:1. Center for Sustainable and Inclusive Development Studies (SID), Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), Bangi, Selangor, Malaysia;2. Department of Economics, Faculty of Management Sciences, Alhikmah University, Ilorin, Nigeria;3. Institute of Climate Change (IPI),Universiti Kebangsaan Malaysia UKM, Bangi, Selangor, Malaysia;4. Institute of Informatics and Computing in Energy (IICE), Universiti Tenaga Nasional (UNITEN), Kajang, Selangor, Malaysia;1. Power Electronics and Renewable Energy Research Laboratory (PEARL), Department of Electrical Engineering, University of Malaya, 50603 Kuala Lumpur, Malaysia;2. Department of Electronic Engineering, Macquarie University, 2109 Sydney, NSW, Australia;3. Center of Electrical Energy Systems, Faculty of Electrical Engineering, Universiti Teknologi Malaysia, 8130 Johor Bahru, Malaysia;1. Energy Studies Institute, National University of Singapore, Singapore;2. University of Technology Sydney, Australia-China Relations Institute, Australia;1. Centre for Poverty and Development Studies (CPDS), Faculty of Economics and Administration, University of Malaya, 50603 Kuala Lumpur, Malaysia;2. Department of Economics, Faculty of Economics and Administration, University of Malaya, 50603 Kuala Lumpur, Malaysia;1. Faculty of Engineering and Technology, Malaysia Multimedia University (MMU), 75450 Bukit Beruang, Melaka, Malaysia;2. UM Power Energy Dedicated Advanced Centre (UMPEDAC), Level 4, Wisma R&D, University of Malaya, 50603 Kuala Lumpur, Malaysia;3. Institute of Graduate Studies, University of Malaya, 50603 Kuala Lumpur, Malaysia;4. Faculty of Business, Malaysia Multimedia University (MMU), 75450 Bukit Beruang, Melaka, Malaysia
Abstract:The Malaysian electricity industry evolved from a vertically integrated utility into a single-buyer model, which considered a precursor to deregulation and a competitive market. This study considers electricity sector reform in Malaysia and proposes a market structure for the industry. We focus on the single-buyer model and the pool model for the analysis with the recommendation on reform stages required to ensure a smooth and successful market transition. A smooth transition from regulated market into deregulated market will ensure market stability and sustainability of the energy market. It will also provide enough time for the market participants to adapt and transit from regulated to deregulated energy market.
Keywords:Malaysia electricity Supply industry (MESI)  Grid system operator (GSO)  Single buyer  Independent power producer (IPP)  System marginal pricing  Reform  Monopoly
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