• Journal of Electrical Engineering and Technology
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• v.13 no.6
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• pp.2203-2211
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• 2018

Capacity payment mechanism has been adopted as the incentive scheme to achieve resource adequacy in Korean electricity market, however, the level of capacity price has been controversial due to its insufficient extent to incur financial loss for certain generators. Therefore, a new method is proposed to estimate the proper level of capacity price incorporating profitability of market participants and resource adequacy in this paper. The proposed method is successfully applied to test system based on Korean power system.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.56 no.6
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• pp.1017-1022
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• 2007

In this paper, we try to analyze the likelihood of exercising the power of market dominance by certain generators in future power industry of Korea. Firstly, we estimated installed generation capacity and sales volume of electricity in Korea, based on 'The 3rd Long Term Power Plan' which was announced in December 2006. Secondly, we calculated HHI, an index showing the degree of concentration of an industry, and RSI, an index showing how adequate the supply of goods or services of an industry is, using Fast-Forward. Thirdly, assuming a major generator employs the strategy of withholding a part of its available capacity at a peak time, we simulated hypothetical movement of SMP over a certain period of time, which is compared with that obtained without assuming such strategy to generate Lerner Index. an index showing the degree of market power of a monopoly. Regulators, home and abroad, have not given much interest in analyzing the effect of market dominance that is likely to be exercised by certain players in the future. That said, this paper provides insight into developing methodologies of analyzing and mitigating such effect by proposing the above indices to gauge it. In addition, this paper also shows the potential impact of employing capacity withholding strategy on the financial account of a dominant generator.

• Journal of Information Technology Services
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• v.11 no.3
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• pp.67-87
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• 2012

These days, firms are focusing on the improvement of relationships with business partners. The supply chain integrations are taking critical role in improving the relationships with business partners. In accordance with the development of the IT technology, it became possible for firms not only to integrate inner parts of the organization, but also to integrate the company with other organizations in the supply chain, which is open system. Therefore, in e-Biz environments, it is imperative for firms to strengthen the core capacity through the supply chain integration, and to precisely determine the components of the determinants of e-Business integration which impact the firm performance. This study analyzed determinants that have impacts on business integration in IT capacity perspectives in competetive environments. We analyzed 163 domestic companies to find out many significant suggestive points. First, IT management capacity, process innovation capacity are adopted as determinants of differentiation and competetive edges against competing firms. Second, it is analyzed that the more the companies are in intensified competetive environment, the more likley that the innovation capacity and partner management capacity become the determinants of the business integration of the companies and that they pursue new market development strategy. Third, it is analyzed that the more the companies are in high demand fluctuation, the more likley that the innovation capacity becomes the determinants of the business integration of the companies, and that they pursue new market development strategy and operation efficiency strategy. Last, it is analyzed that the more the companies are Technology dependent, the more likely that IT management capacity and process innovation capacity become the determinants of business integration, and that they pursue new market development strategy and operation efficiency strategy. These results provide us the foundation that the determinants that we have analyzed can impact the supply chain integration strategies which take into account the competetive environments.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.6
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• pp.115-125
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• 2022

As the digital economy has emerged as a means of building a new business order and creating new values, the number of small business owners participating in digital platforms is gradually increasing. This study aims to check whether small business owners participating in the digital platform are being helped to properly respond to the market environment and establish and implement strategies necessary for growth through learning within the platform. To this end, this study attempted to examine the effect of the absorptive capacity of small business owners using e-commerce platforms on market orientation and the moderating effect of vicarious learning and experiential learning, which are two types of learning within the platform. As a result of verifying the hypothesis through the survey, it was found that the absorption capacity of small business owners using digital platforms positively affected their market orientation. In addition, as a result of the moderating effect analysis, it was found that vicarious learning within the platform strengthens the relationship between absorptive capacity and market orientation. This result implies that small business owners can not only prepare for market uncertainties through indirect learning (vicarious learning) but also establish strategies to provide products and services that meet the market's needs. On the other hand, the effect of experiential learning was found to lower market orientation, which means that previous business experiences can rather lower attention to the environment. The significance and implications of the study were presented.

• Environmental and Resource Economics Review
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• v.14 no.3
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• pp.753-773
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• 2005

This paper is a study of the investment dynamics focusing on crude oil supply by OPEC and non-OPEC. Oil supply capacity is first determined by a leader, OPEC, and by an aggregate that represents non-OPEC producers. OPEC wants to increase a gain from oil price increase while keeping its market share relative to non-OPEC's share. An investment rule model is developed for OPEC crude oil supply capacity in response to non-OPEC's decision. In presence of oil price uncertainty, oil price threshold is derived above which it is optimal for OPEC to expand oil supply capacity since otherwise the increased supply of non-OPEC results in weakening of OPEC market share in the world oil market. In addition, a lower threshold price is derived below which OPEC triggers a capacity reduction to regain its otherwise forgone profits. A simulation is provided for calculating the capacity expansion and reduction thresholds.

• Proceedings of the KIEE Conference
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• 2005.07a
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• pp.843-845
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• 2005

The uncertainty of long term electricity plan consists of the uncertainty of demand forecast and additional generating capacity. Demand forecast is clearly improved the accuracy than the past through improving forecasting methods. However, the uncertainty of additional generating capacity is increased due to the change of market environment. In an operation by a sole utility, additional generating capacity would be possible by the regulation of government. Currently the generation companies have spined off from KEPCO and some IPPs participate the electricity market. It increases the uncertainty due to weakened regulation. Also the environment movement by NGOs and occurrence of civil affairs cause the increase of uncertainty. This research would analyze the current situation on the uncertainty of additional generating capacity and construction delays. Furthermore this research would present the plan to reflecting it in long term electricity plan.

• Proceedings of the KIEE Conference
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• 2006.07a
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• pp.398-399
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• 2006

The procurement of generation and transmission/Distribution capacity in vertically-integrated electric industry is sufficient by facility construction in suitable time. However, the introduction of competitive electricity market increase the efficiency of availability for facilities and fuels. As a result, long-term capacity procurement is required for stable demand-supply balance since it is expected to maintain their generation capacity at a minimum for profit maximization. In this paper, a new long-term capacity procurement mechanism is proposed, which is able to assure supplemental contribution in competitive electricity market.

• Journal of Electrical Engineering and Technology
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• v.10 no.4
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• pp.1480-1491
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• 2015

In new deregulated electricity market, short-term price forecasting is key information for all market players. A better forecast of market-clearing price (MCP) helps market participants to strategically set up their bidding strategies for energy markets in the short-term. This paper presents a new prediction strategy to improve the need for more accurate short-term price forecasting tool at spot market using an artificial neural networks (ANNs). To build the forecasting ANN model, a three-layered feedforward neural network trained by the improved Levenberg-marquardt (LM) algorithm is used to forecast the locational marginal prices (LMPs). To accurately predict LMPs, actual power generation and load are considered as the input sets, and then the difference is used to predict price differences in the spot market. The proposed ANN model generalizes the relationship between the LMP in each area and the unconstrained MCP during the same period of time. The LMP calculation is iterated so that the capacity between the areas is maximized and the mechanism itself helps to relieve grid congestion. The addition of flow between the areas gives the LMPs a new equilibrium point, which is balanced when taking the transfer capacity into account, LMP forecasting is then possible. The proposed forecasting strategy is tested on the spot market of the Nord Pool. The validity, the efficiency, and effectiveness of the proposed approach are shown by comparing with time-series models

• The Journal of Industrial Distribution & Business
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• v.10 no.1
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• pp.19-27
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• 2019

Purpose - The purpose of the paper is to examine disconnection between supply and demand shipping market, which means shipowner has determined to raise capacity in bust period. Research design, data, and methodology - The research method to be applied is first to look into conceptual theory about shipping market, and then to study imbalance of supply and demand situations in shipping on crisis, and next, to analyses paradoxical aspects traced. Results - Shipping market is a volatile and cyclic characteristics, and its situations have to be examined very carefully. Since financial crisis has broken up in 2008, it is natural to think that world trade volumes has reduced rapidly, which means demand for shipping service has fallen, and accordingly, tonnage should be stagnated as well. However, shipping companies have put capacity into market as unexpectedly. This is because of economy of scale and time lag. Here, this can be explained in terms of paradox that is proved in this paper. Conclusions - From careful research in this paper, it is found that supply and demand are not always got along with market situations, in other words supply side could be working well, in spite of depression time of demand situations in world shipping markets.

• Proceedings of the KIEE Conference
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• 2001.07a
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• pp.550-552
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• 2001

The vertically integrated power industry was divided into six generation companies and one market operator, where electricity trading was launched at power exchange. In this environment, the profits of each generation companies are guaranteed according to utilization of their own generation equipments. Especially, the electricity demand shows seasonal and weekly regular pattern, which the some capacity should be provided into ancillary service based on the past demand forecasting error and operating results of electricity market. Namely, if generation cost function is applied to SMP and BLMP as announced the previous day, the available generation capacity of the following day could be optimally distributed, and therefore contract capacity of ancillary service applied to CBP(Cost Based Pool) and TWBP(Two-Way Bidding Pool) is determined. Consequently, it is Possible to use the retained equipments optimally. This paper represents on efficient bidding strategies for generation equipments through the calculation of the contract and the application of each generator cost function based on the past demand forecasting error and market operating data.