• Journal of Energy Engineering
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• v.15 no.4 s.48
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• pp.256-276
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• 2006

Transmission congestion is one of the key factors to local market power in competitive electricity markets. Financial transmission rights provide the financia] protection to their holders by paying back the congestion rent. A variety researches have shown that the existing trading mechanisms on transmission right can exacerbate market power. This paper proposes an alternative methodology in mitigating the local market power using the Contingent Transmission Rights on the locational marginal pricing scheme. The proposed methodology was demonstrated with the Optimal Power Flow.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2003.10a
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• pp.780-784
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• 2003

This parer propose a new method to calculate nodal price which is very useful data in electric market under non-optimal operation. To calculate nodal price, we employ marginal cost and power flow, and consider network loss, generator capability, and line capability. The proposed method is applied to the test system and the usefulness is verified.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.17 no.4
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• pp.87-93
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• 2003

This paper presents a new harmonics reduction methodology using shadow price. First, we employed shadow price of each bus to reduce harmonics effectively. Second, we developed a new algorithm which can reduce harmonics under limits at PCC and each bus. As a result economical design of filters and its location of the distribution system is possible. This method is applied to the real system, and the usefulness of the method is verified.

• Journal of Energy Engineering
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• v.11 no.4
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• pp.291-298
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• 2002

This paper presents a practical methodology that can analysis power flow and marginal factors based on optimal power flow (OPF) of power systems under restructuring environment. First of all, to evaluate useful marginal factors, nonlinear optimization problems of minimum fuel cost and minimum transmission loss are formulated and solved by nonlinear primal-dual interior point method. Here, physical constraints considered in the optimization problems are the limits of bus voltage. line overloading, and real & reactive power generation. Also, an evaluation method of marginal price and marginal transmission loss is presented based on sensitivities calculated by the two OPF problems. Especially, to reflect the cost related to transmission losses in the competitive electricity market, an analysis method of MLF (marginal loss factor) is pro-posed. Numerical results on IEEE RTS 24 show that the proposed algorithm is effective and useful for analysis of power market price.

• Proceedings of the KIEE Conference
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• 2000.11a
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• pp.6-9
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• 2000

This paper presents the detailed derivation of optimal nodal price for active power to regionally evaluate system loss and congestion cost. The method is to decompose them into different components corresponding to system loss, transmission congestion, voltage constraint, and so on. The decomposed information for nodal price can be used to provide economic signals for generation or transmission investment as well as to improve the efficient usage of power grid and congestion management. The result of case study on IEEE 30 bus system is reported to illustrate the proposed method.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.55 no.4
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• pp.156-162
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• 2006

Transmission zones can be defined based on LMPs. Each zone consists of nodes with similar LMPs, and zonal price is determined by average nodal prices in each zone.[1] Network reduction is still important for the analysis of zonal systems under electricity market environments, even though the computing capability of computer system can deal with entire power systems. The Similarity Index is a good performance measure for the network reduction.[2] It can be applied to the network reduction between zones categorized by the nodal prices. This paper deals with a novel network reduction method between zones based on the similarity Index. Line admittances of reduced network were determined by using the least square method. The proposed method was verified by IEEE 39 bus test system.

• Proceedings of the KIEE Conference
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• 2006.07a
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• pp.365-367
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• 2006

송전망은 전력수송을 가능하게 함으로써, 경쟁적 전력시장을 지지하는 하부구조의 역할을 한다. 하지만 송전망은 여러 제약조건에 의해 수송 한계에 다다를 수 있고 이렇게 공급능력의 한계를 벗어남으로써 발생한 송전혼잡은 전체 계통운영에 있어서 비용 상승을 일으킨다. 본고에서는 송전선로 내 혼잡이 가격에 미치는 영향을 알고 그로 인한 각 모선의 LMP(Locational Marginal Price) 형성에 대해 세부적으로 연구하였다. 그리고 입찰방법을 단순히 이상적인 상창이 아닌 송전 혼잡으로 인해 전력 공급자가 시장지배력을 갖게 되었을 경우에 대하여 적절한 입찰전략의 필요성을 언급하고 가능한 방법을 생각해 보았다.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.7
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• pp.1157-1166
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• 2008

This paper presents a new approach for the evaluation of location marginal prices (LMPs) considering demand-side bidding (DSB) in a competitive electricity market. The stabilization of the electric power supply and demand balance is one of the major important activities in electric power industry. In this paper, we present an analytical method for calculation of LMPs considering DSB, which has opportunity to compete with generating units, as England & Wales Pool's DSB scheme[1]. Also, we propose a new approach that LMP considering DSB is divided into three components. The proposed approach can be used for the evaluation of demand-side bidding into the electricity market and the assessment of the influence of DSB on total production costs and LMPs as well as three components.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.55 no.8
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• pp.341-350
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• 2006

This paper presents a new methodology to draw the components of locational marginal price (LMP) in electricity market. Recently, the changing environments surrounding electricity industries resulted in the unbundled services provided by electricity market players, which may require the new pricing mechanisms based on the LMP. The changed pricing mechanisms will provide the price signals of time and location to the market participants. Most of the existing studies of LMP are based on the Lagrangian multipliers as shadow prices to evaluate the equivalent values of constraints or factors for security, reliability and quality. However, the shadow prices cannot provide enough information for components of LMP. In this paper, therefore, we proposed a new approach that LMP is divided into three components. To do this, we first present the method for shadow prices calculation and then break down LMP into a variety of parts corresponding to the concerned factors. The proposed approach is applied to 5-bus and modified IEEE 14-bus sample system in order to verify its validity.