Abstract
Electricity Market in Korea can't provide locational price signal through energy price because energy market is CBP(Cost Based Pool) using uniform price. Generators don't want to locate in a densely populated load area(like the metropolitan area). Because they are paid more fixed cost in metropolitan area. This situation has loss and congestion occurred in power system. However energy market without price signal can't lead generator to the metropolitan. So, market participants should be provided price signal through the transmission price instead of energy price. This paper proposes transmission pricing method considering reliability cost in order to offer price signal. Also, it proposes the method to allocate the transmission cost to each transmission line user through a fair and a reasonable manner. The transmission price is decided by the reliability value of each line. If a transmission line of high reliability value is broke, users using that line will get a loss and a discomfort. So, it is fair that users using a transmission line of high reliability value pay more than the other users. Also, it is reasonable that a transmission line owner get paid more form users using that line.
