• The Transactions of the Korean Institute of Electrical Engineers A
• /
• v.52 no.6
• /
• pp.333-339
• /
• 2003

Competition among electric generation companies is a major goal of restructuring in the electricity industry. In electricity market, a huge volume of commodities will be traded through competitive bidding. The choice between uniform and pay-as-bid pricing for electricity auction has been one of most important issues in deregulated electricity market. This paper proposes a constrained Bertrand model for analyzing the electricity auction market of price competition model. The issue of the two pricing rules of uniform and pay-as-bid is studied from the viewpoint of consumer's benefit. This paper also shows that transmission congestion depends on the pricing mechanism. Pay-as-bid pricing gives less possibility of transmission congestion by price competition, and less burden to consumers in the simulation results.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.27 no.4
• /
• pp.11-27
• /
• 2002

This paper is aimed at surveying the method that supports logical and theoretical back grounds of electricity service pricing, to investigate whether the ESPM can reflect comprehensively the various interests of parties and persons concerned with electricity supply and demand, and analyzing the practical applicability of the model in short-term perspectives. The major findings of this study can be summarized as fellows. First, the ESPM explains what process the equilibrium price is attained through, which is the essential concept and object in evaluating the value of public enterprises or utilities and the price of electricity Second, the ESPM provides the logics and methods that can objectify the discrete price by each electricity user. Third, the ESPM presents theoretical logics and practical methods that can calculate the basic price and the variable price per electricity unit which are key concepts in the two-part tariff. Fourth, the ESPM has powerful practical applicabilities in the reasonable electricity pricing and in the explanation for the balance between parties and persons interested with electricity supply and demand.

• Journal of Electrical Engineering and Technology
• /
• v.2 no.4
• /
• pp.494-499
• /
• 2007

In this paper, we have investigated how transmission network constraints can be modeled in an electricity market equilibrium model. Under Cournot competition assumption, a game model is set up considering transmission line capacity constraints. Based on locational marginal pricing principle, market clearing is formulated as a total consumers# benefit maximization problem, and then converted to a conventional optimal power flow (OPF) formulation with a linearized transmission model. Using market clearing formulation, best response analysis is formulated and, finally, Nash equilibrium is formulated. In order for illustration, a numerical study for a four node system with two generating firms and two loads are presented.

• ETRI Journal
• /
• v.35 no.4
• /
• pp.677-686
• /
• 2013

In this paper, we first introduce a general architecture of an energy management system in a home area network based on a smart grid. Then, we propose an efficient scheduling method for home power usage. The home gateway (HG) receives the demand response (DR) information indicating the real-time electricity price, which is transferred to an energy management controller (EMC). Referring to the DR, the EMC achieves an optimal power scheduling scheme, which is delivered to each electric appliance by the HG. Accordingly, all appliances in the home operate automatically in the most cost-effective way possible. In our research, to avoid the high peak-to-average ratio (PAR) of power, we combine the real-time pricing model with the inclining block rate model. By adopting this combined pricing model, our proposed power scheduling method effectively reduces both the electricity cost and the PAR, ultimately strengthening the stability of the entire electricity system.

• The Transactions of The Korean Institute of Electrical Engineers
• /
• v.65 no.7
• /
• pp.1128-1134
• /
• 2016

Demand response provides customer load reductions based on high market prices or system reliability conditions. One type of demand response, price-based program, induces customers to respond to changes in product rates. However, there are large-scale general and industrial customers that have difficulty changing their energy consumption patterns, even with rate changes, due to their electricity demands being commercial and industrial. This study proposes an in-house pricing model for large-scale general and industrial customers, particularly those with multiple business facilities, for self-regulating demand-side management and cost reduction. The in-house pricing model charges higher rates to customers with lower load factors by employing peak to off-peak ratios in order to reduce maximum demand at each facility. The proposed scheme has been applied to real world and its benefits are demonstrated through an example.

• Journal of Energy Engineering
• /
• v.8 no.4
• /
• pp.505-511
• /
• 1999

One of the major challenges confronting a multiservice electric utility is the establishment of the right prices, for its services. The key objectives of particular pricing schemes are reasonableness of company earnings. Economic efficiency, the responsiveness of supply and of the allocation of sources to the desires of consumers, and maintenance of some degree of competition. This paper proposes a value-based pricing mechanism amenable to the current deregulation situation in electricity market allowing service differentiation. The proposed pricing mechanism can be implemented ina nodal auction model, and can also be applied to direct load control.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.39 no.1
• /
• pp.49-67
• /
• 2014

This paper proposes a real time pricing model for smart grid considering consumers' behavior, real time price elasticity, and exogenous price. Based on the proposed model, we found the weight of utility over cost is the most sensitive factor compared to other factors. Also, if the electricity price is set to be changed too sensitively to energy consumption, it is warned that real time pricing sometimes can cause increment of peak-time demand and volatility. Finally, real time pricing could be less efficient when the difference between the maximum and the minimum consumption level is small.

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

• Environmental and Resource Economics Review
• /
• v.31 no.2
• /
• pp.205-232
• /
• 2022

This study analyzes the effect of the 2^nd pilot test of Tiime of Use (TOU) pricing for Korean households using a two-level electricity demand model. The test, implemented from May to September 2021, was conducted to compare the effects of two TOU pricing rates and the standard rates for households living in apartment and detached house in 7 provinces of Korea. Based on the data on electricity consumption during the test period and during the same period last year of the 1,292 participants and their socio-economic characteristics, this study analyzes (1) whether the relative demand across periods has changed in response to hourly price changes and (2) whether the price responsiveness of daily consumption has changed after the introduction of TOU pricing. The results show that both types of TOU pricing affect neither the relative demand across periods nor the price responsiveness of daily consumption. The reason behind the results could be related to the level of TOU pricing rates and the periodical classification, which were not sufficient to induce changes in the participants' electricity demand patterns.

• Journal of Electrical Engineering and Technology
• /
• v.4 no.1
• /
• pp.49-54
• /
• 2009

One of the major challenges confronting a multiservice electric utility is the establishment of the right prices for its services. The key objectives of particular pricing schemes are reasonableness of company earnings, economic efficiency, the responsiveness of supply and of the allocation of sources to the desires of consumers, and maintenance of some degree of competition. This paper proposes a value-based pricing mechanism amenable to the current deregulation situation in electricity market allowing service differentiation. The proposed pricing mechanism can be implemented in a nodal auction model, and can also be applied to direct load control.