• International Journal of Control, Automation, and Systems
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• 제6권5호
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• pp.627-638
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• 2008

With the shift of the electric power industry from a regulated monopoly structure to a competitive market environment, the focus of the transmission expansion planning has been moving from reliability-driven transmission expansion to market-based transmission expansion. In market-based transmission expansion, however, a growing demand for electricity, an increasing number of transmission bottlenecks, and the falling levels of transmission investment have created the need for an incentive to motivate investors. The expectation of profit serves as a motivational factor for market participants to invest in transmission expansion in a competitive market. To promote investment in transmission expansion, there is an increasing need for a systematic method to examine transmission expansion for investment incentives from multiple perspectives. In this paper, the transmission expansion problem in a competitive market environment is formulated from ISO and investors' perspectives. The proposed method uses parametric analysis to analyze benefits for investors to identify the most profitable location and amount for transmission addition. Numerical results are presented to demonstrate the effectiveness of the proposed method.

• Journal of Electrical Engineering and Technology
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• 제6권4호
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• pp.431-438
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• 2011

To ensure that equipment outages do not directly impact the reliability of the ISO-controlled grid, market participants request permission and receive approval for planned outages from the independent system operator (ISO) in competitive electricity markets. In the face of major generation outages, the ISO will make a critical decision as regards the scheduling of the essential maintenance for myriads of generating units over a fixed planning horizon in accordance with security and adequacy assessments. Mainly, we are concerned with a fundamental framework for ISO's maintenance coordination in order to determine precedence of conflicting outages. Simulated annealing, a powerful, general-purpose optimization methodology suitable for real combinatorial search problems, is used. Generally, the ISO will put forward its best effort to adjust individual generator maintenance schedules according to the time preferences of each power generator (GENCO) by taking advantage of several factors such as installed capacity and relative weightings assigned to the GENCOs. Thus, computer testing on a four-GENCO model is conducted to demonstrate the effectiveness of the proposed method and the applicability of the solution scheme to large-scale maintenance scheduling coordination problems.

• 전기학회논문지
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• 제56권1호
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• pp.41-47
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• 2007

Transmission Loss Factor (TLF) is one of the key factors affecting transmission pricing which should capture the intrinsic characteristics of competitive electricity markets and be amenable to the agreement of the market participants. This paper proposes a practical methodology which enhances the utility and applicability of TLF which is vulnerable to the choice of slack bus, computation methodologies, and incremental generation (or incremental load). The proposed methodology is demonstrated with a case study.

• 대한전기학회:학술대회논문집
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• 대한전기학회 2005년도 추계학술대회 논문집 전력기술부문
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• pp.159-161
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• 2005

Transmission congestion is one of the key factors to local market power in competitive electricity markets. Financial transmission rights provide the financial protection to their holders by paying back the congestion cost. However, the market participants who have market power can exacerbate their market power. Due to the exacerbated market power, this paper analyzes the mitigation of local market power using Contingent transmission rights on the market price. Contingent transmission rights provide not only the financial protection but also regulative penalty. The proposed methodology was demonstrated with the Optimal Power Flow(OPF).

• 전기학회논문지
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• 제56권2호
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• pp.268-276
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• 2007

Transmission congestion is one of the key factors to local market power in competitive electricity markets. Financial transmission rights provide the financial protection to their holders by paying back the congestion rent. A variety researches have shown that the existing trading mechanisms on transmission right can exacerbate market power. This paper proposes an alternative methodology in mitigating the local market power using the Contingent Transmission Rights on the locational marginal pricing scheme. The proposed methodology was demonstrated with the Optimal Power Flow.

• 대한전기학회논문지:전력기술부문A
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• 제53권8호
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• pp.477-483
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• 2004

In competitive electricity markets, maintenance schedule is submitted by generation companies (GENCOs) and transmission companies (TRANSCOs), and coordinated by Independent System Operator (ISO) with the adequacy criterion. This paper presents an alternative coordination procedure by ISO on the maintenance schedule. In this paper, it is focused on modeling a coordination algorithm by ISO for the maintenance schedule based on the Simulated Annealing algorithm. The proposed model employs the minimum information such as generator capacity, forced outage rate and generator maintenance schedules. The objective function of this model represents minimization of adjustment on schedules submitted by GENCOs.

• 전기학회논문지
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• 제58권8호
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• pp.1496-1503
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• 2009

The United Nations Framework Convention on Climate Change (UNFCCC) is an international environmental treaty to stabilize greenhouse gas concentrations in the atmosphere. In order to fulfil the commitments of the countries in an economically efficient way, the UNFCCC adapted the emission trading scheme in the Kyoto Protocol. If the UNFCCC's scheme is enforced in the country, considerable changes in electric power industry are expected due to the imposed greenhouse gas emission reduction. This paper proposes a game theoretic model of the case when generation companies participate in both competitive electricity market and emission market simultaneously. The model is designed such that generation companies select strategically between power quantity and greenhouse gas reduction to maximize their profits in both markets. Demand function and Environmental Welfare of emission trading market is proposed in this model. From the simulation results using the proposed model the impact of the emission trading on generation companies seems very severe in case that the emission prices are significantly high.

• 대한전기학회:학술대회논문집
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• 대한전기학회 2003년도 하계학술대회 논문집 A
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• pp.624-626
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• 2003

Transmission pricing is one of important issues related to competitive electricity markets since rational pricing scheme ensures a fair competition between this market participants. Transmission pricing scheme is classified briefly into marginal cost pricing and embedded cost pricing. In economic efficiency, marginal cost pricing is more adequate for competitive electricity market. However, this pricing scheme requires revenue reconciliation since it cannot ensure full recovery of Transco's revenue requirements. This paper presents a new revenue reconciliation to maximize social welfare. For this analysis, this paper provides the results applied by various revenue reconciliation methodologies.

• 한국시스템다이내믹스연구
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• 제3권1호
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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.

• 전기학회논문지
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• 제57권9호
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• pp.1531-1535
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• 2008

In the past vertically integrated power system, the power utility forecasted power demand and invested new power plants to keep a system adequacy. However, in the competitive electricity markets, a principle part of the capacity investment is market participants who decided the investment to maximize their profit. Especially, one of the main factors in their long-term decision making is the retrieval of fixed costs (construction costs). This paper presents the capacity payment in electricity power markets. The capacity payment (CP) in Cost Based Pool (CBP) is needed to recover fixed costs. However, CP in CBP was applied not only recovering fixed costs but also ensuring supply reliability. In order to operate harmonious power markets, pool needs reasonable CP mechanism. This paper analysis CP using capacity proportion and Reliability Pricing Model (RPM).