• 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.

• Proceedings of the KIEE Conference
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• 2005.07a
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• pp.819-821
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• 2005

Since the System Marginal Price (SMP) is a vital factor to the market entities who intend to maximize the their profit, the short-term marginal price forecasting should be performed correctly. In a electricity market, the short-term trading between the market entities can be generally affected a short-term market price. Therefore, the exact forecasting of SMP can influence on the profit of market participants. This paper presents a methodology of day-ahead SMP foretasting using Autoregressive Integrated Moving Average (ARIMA). To show the efficiency and effectiveness of the proposed method, the numerical studies have been performed using historical data of SMP in 2004.

• Proceedings of the KIEE Conference
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• 2001.11b
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• pp.411-413
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• 2001

This paper discusses on an optimal bidding strategy of a generator in a competitive electricity spot market using the information of predicted spot price with some assumptions. Optimal bidding strategy of a generator is derived by solving a profit-maximizing optimization problem with a constraint where the forecasted spot price is treated as a constant value. The main advantage of this methodology is that the optimal bidding strategy of each generator can be obtained independently where the gaming characteristics of generators are merged into the forecasted spot price.

• Journal of the Korean Association of Geographic Information Studies
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• v.16 no.4
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• pp.91-105
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• 2013

This study performed an assessment of wave power potential in the Kangwon and Dongnam regions encompassing the East Sea and part of South Sea. Annual electricity production and economic effects of 28 wave energy converters with 750kW capacity were analyzed using significant wave height and peak wave period data(created from the NOAA's NWW3 model) and InVEST software(developed by Stanford University and University of Minnesota). Annual electricity production was estimated to be up to 1,207MWh/year and at least 163MWh/year. The spatial pattern of annual electricity production showed that the sea far from land has higher wave power potential than the sea near coast. The net present value(NPV) of 28 wave energy converters was calculated by considering an operation period of 25 years. When assuming that the electricity produced from wave energy converters is transferred to onshore power plants through underwater cables, the NPV was estimated to be up to 5,883USD(6,600,000KRW) and at least -63,494USD(-71,000,000KRW). In contrast, the NPV increased up to 28,095 USD(31,600,000KRW) when assuming that the electricity is utilized in the Ulleungdo and Dokdo. In addition, it was found that the break-even line of NPV in the East Sea becomes closer towards the land according to the increment of electricity price. The NPV of wave energy converters near the Ulleungdo and Dokdo will be 88,158 USD(99,000,000KRW) if the increment of electricity price is 100KRW.

• Environmental and Resource Economics Review
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• v.25 no.1
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• pp.113-140
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• 2016

Achieving the two goals of providing stable remuneration and promoting market based incentive for generation capacity with only one kind of capacity price is a difficult proposition. This paper suggests a market design in which two different kinds of capacity prices are used to achieve these goals. It maintains the current capacity price that is determined administratively based on the fixed cost of the gas-turbine generator. A second capacity price is added that covers generators with higher fixed costs and lower fuel costs such as combined-cycle gas turbine, coal-powered, and nuclear generators. This second capacity price is conditional on a lower energy price ceiling and determined by the interaction of the market supply and a demand schedule derived from the optimal fuel mixed principle.

• Proceedings of the KIEE Conference
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• 2007.11b
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• pp.255-257
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• 2007

Korea electricity market consists of two payment systems, capacity and energy. Capacity payments are given to the generators according to its hourly availability considering hourly and seasonal weighting factors. Energy payments are settled at the marginal generation cost based on generator variable cost. In 2007, base load energy market is closed and single capacity payment system is begun to apply in electricity market. In this revised market rule, energy price cap for base load generators is newly introduced. We analyze impact of market rule revision in 2007 on base load generators and suggest improvement scheme to enforce market system in this study.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.25 no.1
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• pp.64-69
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• 2011

A novel concept of the gridable desalination plant is to provide an operation management to enable an electricity plant operation cost reduction. Adjusting recovery rate responded to electricity price, an electricity plant operation cost can be saved. To show a suggested approach, the data of 10 [MIGD](Million Imperial Gallons per Day) SWRO testbed are used. The result shows that total cost reduction rate is calculated about 1.6[%] of annual total electric plant operation cost.

• Proceedings of the KIEE Conference
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• summer
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• pp.713-715
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• 2004

In an electricity market with an imperfect competition, participants make plans of biddings and transaction strategies to maximize their own profits. The market price and the quantity are concerned with the operation reserve as well as the bidding system and demand curves in an electricity market. This paper presents a model of the combined market , energy market and operating teserve market. The Nash equilibrium is analyzed by using a hi-level optimization , maximization of Social welfare (SW) and maximization of the producers' profits.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.54 no.4
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• pp.199-204
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• 2005

In an electricity market with an imperfect competition, participants make plans of bidding and transaction strategies to maximize their own profits. The market price and the quantity are concerned with the operation reserve as well as the bidding system and demand curves in an electricity market. This paper presents a market model combined by an energy market and an operating reserve market. The competition of the generation producers in the combined market is formulated as a gaming of selecting bid parameters such as intersections and slopes in bid functions. The Nash Equilibrium(NE) is analyzed by using a hi-level optimization; maximization of Social Welfare(SW) and maximization of the producers' profits.

• Proceedings of the KIEE Conference
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• 2003.11a
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• pp.422-425
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• 2003

CBP market which is the first stage of competitive electricity market has been operated and the KPX has been established since April, 2001 by restructuring plan for electricity industry. Baseload unit are settled with baseload CP and BLMP in CBP market. The other unit are settled with peakload CP and SMP. The difference of settlement between two groups occurs the profit changes of the unit. This paper analyzes the profit by units under settlement rule in CBP market. It analyzes the difference between market clearing price and variable costs, and fixed cost recovery through CP income. Finally, this paper suggests the plan how market was affected by the difference of fixed cost recovery by generators and how to improve Intermediate and peak load unit's profit.