• KIEE International Transactions on Power Engineering
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• v.5A no.2
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• pp.193-198
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• 2005

This paper proposes a new method to handle transmission line losses using loss distribution factors (LDF) rather than marginal loss factors (MLF) in electricity market operation. Under a competitive electricity market, the bidding data are adjusted to reflect transmission line losses. To date the most proposed approach is using MLFs. The MLFs are reflected to bidding prices and market clearing price during the trading and settlement of the electricity market. In the proposed algorithm, the LDFs are reflected to bidding quantities and actual generations/ loads. Computer simulations on a 9-bus sample system will verify the effectiveness of the algorithm proposed. Moreover, the proposed approach using LDFs does not make any payments residual while the approach using MLFs induces payments residual.

• Korean System Dynamics Review
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• v.6 no.1
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• pp.99-123
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• 2005

Although the generation market is competitive, the power market is easily exercised the market power by one generator due to its special futures such as a limited supplier, large investment cost, transmission constraints and loss. Specially, as Korea Electric industry restructuring is similar US competitive wholesale electricity market structure which discovered the several evidences of market power abuse, when restructuring is completed the possibility that market power will be exercised is big. Market power interferes with market competitions and efficiency of system. The goal of this study is to investigate the market price effects of the potential market power and the proposed market power mitigation strategy in Korean market using the forecasting wholesale electricity market model. This modeling is developed based on the system dynamics approach. it can analyze the dynamic behaviors of wholesale prices in Korean market. And then it is expanded to include the effect of market condition changed by 'strategic behavior' and 'real time pricing.' This model can generate the overall insights regarding the dynamic impact of output withholding by old gas fire power plant bon as a marginal plant in Korean market at the macro level. Also it will give the energy planner the opportunity to create different scenarios for the future for deregulated wholesales market in Korea.

• Proceedings of the KIEE Conference
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• 2005.07a
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• pp.801-803
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• 2005

Fundamentally, success of the competitive electricity market is dependent on efficient market design. However, since electricity incorporates various physical constraints as other commodities, the resource assignment (i.e., dispatch scheduling) is also one of requisites for the successful operation of electricity market. Therefore, efficient dispatch scheduling is an important issue to succeed in the deregulated electricity market and the efficiency of this electricity market may be considerably increased by systematic studies on dispatch scheduling algorithm and corresponding constraints, especially system security. Moreover, contrary to traditional vertically-integrated electric power industry condition, since various decision-makings in deregulated electricity market are directly connected with market participants' benefits, only rational dispatch scheduling algorithm can convince these participants. Therefore, it can provide a basis of grievance prevention. In this paper, we propose an algorithm for security constrained dispatch scheduling with respect to load curtailment. Proposed algorithm decomposes the dispatch problem into a master problem corresponding to basecase optimal power flow (OPF) and several subproblems corresponding a series of contingencies using two-stage optimization technique.

• Proceedings of the KIEE Conference
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• 2000.07a
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• pp.394-396
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• 2000

This paper presents a new algorithm for the allocation of the reliability level of composite power system under deregulated electricity market. Under deregulated electricity market, it is required to establish a methodology that can evaluate supply cost and supply reliability of each demand to realize the available priority service reflected a preference of each customer. In this study, a concept of reliability differentiated electricity service as priority service to keep reliability of particular customer within a desirable level is proposed on HLII under deregulated competitive electricity market. The uncertainties of not only generators but also transmission lines are considered for the reliability evaluation in this study. The characteristics and effectiveness of this methodology are illustrated by the case studies on MRBTS and IEEE-RTS.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.59 no.12
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• pp.2143-2149
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• 2010

Market price and curtailment amounts of the Demand Resource Market(DRM) are determined by competition between electricity consumers. An important aspect of the DRM involves the assessment of strategic behavior of participants for maximizing their profits. This paper presents economic equilibrium models for simulating imperfect competition among electricity consumers in the DRM and analyzes the models at Nash Equilibrium of Game Theory. The proposed demand functions and supply functions of DRM are based on the Demand Resource Market Rules in Korean electricity market. Simulation results show that the models are adequate for obtaining Nash Equilibrium of consumers' competitive curtailment.

• The Transactions of the Korean Institute of Electrical Engineers P
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• v.59 no.3
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• pp.263-267
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• 2010

Although electricity market structures may be different from each country, they have a long-term forward market and a short-term spot market in general. Particularly, a bilateral contract transacted at a long-term forward market fixes the electricity price between a genco and a customer so that the customer can avoid risk due to price-spike in the spot market. The genco also can make an efficient risk-hedging strategy through the bilateral contract. In this paper, we propose a new mechanism for deriving the optimal bilateral contract price using game theory. This mechanism can make the customer reveal his true willingness to purchase so that an adequate bilateral contract price is derived.

• Korean System Dynamics Review
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• v.3 no.1
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• pp.43-60
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• 2002

This paper describes the forecast of wholesale price in competitive Korean electricity market using the system dynamics approach. The system dynamics concepts have been implemented with the Ithink software. This software facilitates the development of stock and flow model with information feedback. Using this model, the future wholesale electricity price can be computed hour by hour, quarterly, and yearly. This model also gives the energy planner the opportunity to create different scenarios for the future of deregulated wholesale markets in Korea. Also It will lead to increased understanding of competitive wholesale market as a complex, dynamic system. Research results show that the plant construction appeared in waves of boom and bust in Korean electricity market like real estate construction. That is, the Korea wholesale market's new power plants and the market price will appear the Boom and Bust cycle. It is very similar behavior as real estate industry. In case of consideration of DSM program, The DSM savings lead to a somewhat different timing of the booms in construction and of price spikes. But the DSM programs do not eliminated the fundamental dynamics of the boom and bust. And the wholesale price is maintained at the lower level compared to the case of without DSM program. However, the unexpected result is found that due to the lower market price, Investor make significantly less investment in new CCs, which leads to the higher wholesale price after 2010. It suggests that the DSM Policy must be implemented with the dynamics of competitive Electricity Market.

• Proceedings of the KIEE Conference
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• 2006.07a
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• pp.408-409
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• 2006

In this paper, we surveyed researches on the generation maintenance scheduling in competitive electricity markets. Maintenance scheduling can be one of the strategies submitted by market participants in electricity market. Many researches on the maintenance scheduling were preceded with or without transmission system. They have their own specific algorithm for ISO to operate, and control the maintenance schedules. This paper is focused on the survey on the generator and transmission system maintenance scheduling in competitive electricity markets.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.56 no.2
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• pp.260-267
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• 2007

Systematic studies on the dispatch scheduling algorithm can enhance the efficiency of electricity market operation. In addition, as the dispatching policies in competitive electricity markets directly affect the market participants' profits, the dispatch scheduling procedure should be reasonable, systematic, and transparent. In this paper, we propose an unconstrained/constrained pre-dispatch scheduling algorithm and develop corresponding programs applicable to wholesale electricity markets.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.55 no.10
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• pp.440-445
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• 2006

As an electricity industry transforms into a competitive system, an electricity market revolves into a combined market consisting of generation and operating reserve. This paper presents a market model combined by an energy market and an operating reserve market. In a competitive structure, Gencos strive to choose strategic bidding parameters that maximize total profit resulting from an energy market and a reserve market. The primary goal of the paper is to analyze power transactions of generation and operation reserve based on marginal profits and capacity limits at NE(Nash Equilibrium). In case studies, the reserve market and the energy market are compared at the n from the viewpoints of marginal profits, prices and transaction quantities. It is shown that the marginal profit in an energy market is equal to that in a reserve market, and Gencos strategic bidding is greatly influenced by capacity limit.