Development of a three-part time-of-day electrical energy tariff for industrial consumers in Bangladesh

Abstract

A three-part time-of-day (TaD) tariff structure has been proposed as a load management tool to reduce a utility's peak demand, load shedding and improve its load factor. The mathematical model used for this is based on break even point condition in the utility's revenue. Since almost 45% of the total electricity generated is consumed by the industrial consumers in Bangladesh, the system load pattern can be significantly modified by the implementation of the proposed TaD tariff for industrial consumers. Peak, offpeak and mid-peak hours tariff have been determined with respect to the existing flat rate considering hourly generation scenario of Bangladesh Power Development Board(BPDB) on an average demand day of a year, the base and peak load plants' weighted average lifetime, annutised capital cost, fuel cost and practical lengths for peak and offpeak periods. The developed tariff has been applied to thirty selected industries representing low voltage(O.4KV), medium voltage(lIKV) and high voltage(33KV) categories of consumers, to estimate the minimum possible shift in consumption patterns and hence corresponding reduction in the peak generation capacity requirements ofBPDB.