Abstract:
The main purpose of study is to investigate the factors regarding regional market integration by focusing on electricity market in ASEAN. The study aims to compare current situation to the best practice in the electricity market integration, electricity market of Nordic. The PEST model was applied to the study and in-depth interviews with participants in the business sector and academic institutions will show challenges and opportunities for the electricity market of Thailand. The study showed that the Nordic region consists of 4 powerful neighbors, which have strong relationships based on political similarity and a long history of cooperation. The key success factor has been electricity reform and restructuring, which vertically separated the generation and supply function from distribution and transmission networks. The wholesale and retail markets support the competitiveness in electricity trading of Nordic. Furthermore, the analysis showed that most ASEAN countries are vertically-integrated model which market structure was operated by political authority. These caused difficulties in achieving cross-border integration in the electricity market structure in ASEAN. The increasing demand for electricity has led to challenges for ASEAN countries to develop cross border interconnections and to consider the alternative of nuclear power as an energy source for the future. Thailand has geographical advantages that can be hub of ASEAN electricity market. The transmission system of Thailand can be the Back Bone of ASEAN electricity market. The goal to establish a regional power exchange presents a challenge for Thailand to reconsider market reform to create a competitive market in the future.
