• The Transactions of The Korean Institute of Electrical Engineers
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• v.66 no.8
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• pp.1181-1186
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• 2017

The purpose of Demand Response is to reduce the cost of excessive resources and equipment by spontaneous load reductions at peak loads. Having enough power consumers participating in these schemes is key to achieving the goal. Demand Response Aggregator (DRA) is responsible for recruiting demand resources and managing them to participate in reducing the load. DRAs change the price elasticity of demand functions by providing incentives to demand response, thereby affecting price formation in the electricity market. In this paper, this process is modeled to analyze the relationship between DRA's strategic bidding and market outcomes and load reductions. It analyzes the results by applying to competition between DRAs, competition between DR and Gencos, and coexistence of DR load and non-DR load. It is noteworthy that we have found a phenomenon called the Balloon Effect.

• Proceedings of the KIEE Conference
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• 2006.07a
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• pp.418-419
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• 2006

After electricity power industry restructuring, "Long term power development plan", setting up by government, is replaced by "Basic plan of electricity supply and demand". In this basic plan, one of the most important factors is assessment of appropriate capacity margin. The benefit of GENCO is decided by the market price, and the price is largely affected by the level of reserve margin. As a consequence, appropriate reserve margin is determined by market power. However, Cost Based Pool(CBP) is a limited competitive market, and government policy for supply and demand is very important factor or reserve margin determination. This paper points out issues about existing reserve margin assessment method which is used in basic plan and suggests improved assessment method. In the case study, capacity margin is calculated by proposed assessment method and result shows the advantages of suggested method.

• Proceedings of the Korea Inteligent Information System Society Conference
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• 2003.05a
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• pp.255-263
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• 2003

A multi-agent system designed to represent newly deregulated electricity markets in the USA is aimed at testing the capability of the multi-agent model to replicate the observed price behavior in the wholesale market and developing a smart business intelligence which quickly searches the optimum offer strategy responding to the change in market environments. Simulation results show that the optimum offer strategy is to withhold expensive generating units and submit relatively low offers when demand is low, regardless of firm size; the optimum offer strategy during a period of high demand is either to withhold capacity or speculate for a large firm, while it is to be a price taker a small firm: all in all, the offer pattern observed in the market is close to the optimum strategy. From the firm's perspective, the demand-side participation as well as the intense competition dramatically reduces the chance of high excess profit.

• Environmental and Resource Economics Review
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• v.23 no.1
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• pp.91-132
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• 2014

We investigate the effect of ICT capital on the demands for labor and energy in manufacturing and electricity gas water industries of Korea, US, and UK. Assuming ICT capital, non-ICT capital, labor, electricity, fuel, and material as input factors for manufacturing and ICT capital, non-ICT capital, labor and energy material as input factors for electricity gas water industry, we estimate the Morishima elasticities of substitution. Considering the relative price changes of input factors, ICT capital has substituted labor in manufacturing and electricity water gas industries of the three countries. ICT capital has substituted both electricity and fuel in US and UK manufacturing. Although ICT capital has substituted electricity and fuel each other in Korean manufacturing, ICT capital is unlikely to decrease the demands for electricity and fuel when considering their relative price changes. ICT capital has substituted energy material in electricity gas water industries of the three countries.

• Journal of Electrical Engineering and Technology
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• v.8 no.6
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• pp.1269-1275
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• 2013

Recently, many studies have suggested that an electric vehicle (EV) is one of the means for increasing the reliability of power systems in new energy environments. EVs can make a contribution to improving reliability by providing frequency regulation in power systems in which the Vehicle-to-Grid (V2G) technology has been implemented and, if economically viable, can be helpful in increasing power system reliability. This paper presents a stochastic method for optimal coordination of charging and frequency regulation decisions for an EV aggregator using the Least Square Monte-Carlo (LSMC) with modeling of electricity price uncertainty. The LSMC can be used to assess the value of options based on electricity price uncertainty in order to simultaneously optimize the scheduling of EV charging and regulation service for the EV aggregator. The results of a numerical example show that the proposed method can significantly improve the expected profits of an EV aggregator.

• Proceedings of the KIEE Conference
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• 2000.07a
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• pp.388-390
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• 2000

The production of electricity and the pattern of consumption in competitive electricity market are changing. The price of electric power in spot market will be varied by the economic electricity availability of generation utilities and electricity consumers. DSM(demand-side management) is a method which provides simultaneously economics to utilities and consumers as main participants in electricity market. In this paper, it is argued that the effect of DSM in competitive electricity market for consumers, generation utilities, and transmission utilities.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.54 no.2
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• pp.79-87
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• 2005

At present Cournot model is one of the most commonly used theories to analyze the gaming situation in oligopoly market. But there exist several problems to apply this model to electricity market. The representative one is to obtain the inverse demand curve able to be induced from the relationship between market price and demand response. In Cournot model, each player offers their generation quantity to accomplish maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears on the long-term basis through the statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.59 no.5
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• pp.871-881
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• 2010

In the uniform price electricity market or bilateral electricity market, the energy transactions in which the network is not considered and ISO's system operation costs which ISO try to minimize are settled separately. In this paper, transmission loss, one of the ISO's system operation costs, was dealt. The conventional marginal loss allocation method gives economic signals but three aspects have to be considered; excessiveness, arbitrariness and cross-subsidy. In this paper, marginal loss compensation efficiency method was suggested which consider those aspects of the conventional marginal loss allocation method. Also the characteristics of the marginal loss compensation efficiency were analyzed in the appendixes. And simple 2-bus system and IEEE 14 bus system were used to explain these characteristics.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.52 no.4
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• pp.234-239
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• 2003

In recent decades, many countries have introduced competition in the electricity industry. Now, unit commitment becomes not a problem to be solved by a monopoly company but the one to be tackled by each generation company(GENCO). Its aim has been altered from the global cost minimization to the each GENCO's profit maximization. In this paper, the author proposes the scheme of unit commitment of a GENCO to maximize profit considering the uncertainty of market clearing price. The type of the assumed market is a uniform price market. A genetic algorithm is used for the maximization of the profit.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.60 no.2
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• pp.266-272
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• 2011

Real Time Pricing(RTP) is used not only to stabilize the price volatility in electricity market, but to hedge the price risk for Load Serving Entity(LSE). This paper presents an efficient method to reduce the risk of the price volatility in real-time electricity market. For designing the RTP, load patterns of customer are calculated by applying the demand elasticity and customer's utility is also analyzed to compute the RTP revenue through the risk-attribute of the LSE. In the end, the distribution of the LSE's profits can be evaluated to lead the optimal RTP value, depending on the level of customer's participation. Results from the case study based on PJM data are reported to illustrate the proposed method.