• Proceedings of the KIEE Conference
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• 2002.07a
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• pp.435-437
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• 2002

This Paper presents the technical perspective on the Real Time Pricing(RTP). So far customer has no control on the electricity pricing. But the price hike in California makes changes in the electricity demand and pricing. In such environments. RTP has become an important role in Demand Side Management. Here the system configuration, advantages of RTP are described. Also the relationship between RTP and AMR is considered.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.54 no.8
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• pp.418-428
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• 2005

In this paper, a new probabilistic generation modeling method which can address the characteristics of changed electricity industry is proposed. The major contribution of this paper can be captured in the development of a probabilistic generation modeling considering generator maintenance outage and in the classification of market demand into multiple demand clusters for the applications to electricity markets. Conventional forced outage rates of generators are conceptually combined with maintenance outage of generators and, consequently, effective outage rates of generators are newly defined in order to properly address the probabilistic characteristic of generation in electricity markets. Then, original market demands are classified into several distinct demand clusters, which are defined by the effective outage rates of generators and by the inherent characteristic of the original demand. We have found that generators have different effective outage rates values at each classified demand cluster, depending on the market situation. From this, therefore, it can be seen that electricity markets can also be classified into several groups which show similar patterns and that the fundamental characteristics of power systems can be more efficiently analyzed in electricity markets perspectives, for this classification can be widely applicable to other technical problems in power systems such as generation scheduling, power flow analysis, price forecasts, and so on.

• Proceedings of the SAREK Conference
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• 2009.06a
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• pp.1197-1202
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• 2009

Cost allocation on cogeneration is a methodology dividing the input of common cost to electricity cost and heat cost. In the cost allocation methodology of the electricity and heat on a cogeneration, there are energy method, work method, proportional method, benefit distribution method, reversible work method, various exergetic methods, and so on. In previous study, various cost allocation methodologies have been applied and analyzed on a gas-turbine cogeneration producing the 33.1 MW of electricity and the 32.2 Gcal/h of heat, a steam-turbine cogeneration producing the 22.2 MW of electricity and the 44.3 Gcal/h of heat, and combined-cycle cogeneration producing the 314.1 MW of electricity and the 279.4 Gcal/h of heat. In this study, we integrately analyze the results of previous studies and examine the generality and rationality each methodology. Additionally, a new point of view on the values of alternative electricity efficiency and alternative heat efficiency in the previous methodologies was proposed. As the integrated result, we conclude that reversible work method of various common cost allocation methodologies is most rational.

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

• Journal of Energy Engineering
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• v.5 no.1
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• pp.87-92
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• 1996

This paper formulates dynamic optimization model for Time-Of-Use Rates when a electric power system consists of three generators and a rating period is divided into three sub-periods. We use Pontryagin's Maximum Principle to derive optimal price and investment policy. Particularly the cross-price elasticities of demand are considered in the objective function. We get the following results. First, the price is equal to short-run marginal cost when the capacity is sufficient. However, if the capacity constraint is active, the capacity cost is included in the price. Therefore it is equal to the long-run marginal cost. Second, The length of rating period affects allocation of capacity cost for each price. Third, the capacity investment in dynamic optimization is proportional to the demand growth rate of electricity. However the scale of investment is affected by not only its own demand growth rate but also that of other rating period.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.64 no.5
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• pp.667-679
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• 2015

The bearer of the power sector's ETS compliance cost is power consumer for the following reasons. Firstly, power companies are constrained in establishing appropriate strategies to comply with ETS regulations due to the structural differences between the domestic power market and emission trading system. In other words, because power companies do not have a right to determine price and production of electricity, they have to compete with other companies under disadvantaged conditions in the emission trading market. Secondly, because ETS compliance cost is part of power production costs as it is also clearly written in the national greenhouse gas reduction road-map and the second energy supply plan, the cost should be included in power price following the power market operation rule. Thirdly, the most effective method to reduce carbon emissions in power sector is to reduce power demand, which is efficiently achieved through raising power price to a realistic level. Low power price in Korea is the major cause of rising power demand which is also the major cause of rising GHG emission. Therefore, power sector's ETS compliance cost should be included in power price to encourage power consumers' actions on reducing power consumption. Fourthly, when externality cost occurs in the process of delivering public services, usually beneficiary pay principle is applied to identify the cost bearer. Since electricity is one representative public good, the bearer of power sector's ETS compliance cost is power consumer.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2021.10a
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• pp.582-583
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• 2021

As the production of new and renewable energy such as solar and wind power has diversified, microgrid systems that can simultaneously produce and consume have been introduced. . In general, a decrease in electricity prices through solar power is expected in summer, so producer protection is required. In this paper, we propose a transparent and safe gift power transaction system between users using blockchain in a microgrid environment. A futures is simply a contract in which the buyer is obligated to buy electricity or the seller is obliged to sell electricity at a fixed price and a predetermined futures price. This system proposes a futures trading algorithm that searches for futures prices and concludes power transactions with automated operations without user intervention by using a smart contract, a reliable executable code within the blockchain network. If a power producer thinks that the price during the peak production period (Hajj) is likely to decrease during production planning, it sells futures first in the futures market and buys back futures during the peak production period (Haj) to make a profit in the spot market. losses can be compensated. In addition, if there is a risk that the price of electricity will rise when a sales contract is concluded, a broker can compensate for a loss in the spot market by first buying futures in the futures market and liquidating futures when the sales contract is fulfilled.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2021.10a
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• pp.584-585
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• 2021

As the production of new and renewable energy such as solar and wind power has diversified, microgrid systems that can simultaneously produce and consume have been introduced. In general, a decrease in electricity prices through solar power is expected in summer, so producer protection is required. In this paper, we propose a transparent and safe gift power transaction system between users using blockchain in a microgrid environment. A futures is simply a contract in which the buyer is obligated to buy electricity or the seller is obliged to sell electricity at a fixed price and a predetermined futures price. This system proposes a futures trading algorithm that searches for futures prices and concludes power transactions with automated operations without user intervention by using a smart contract, a reliable executable code within the blockchain network. If a power producer thinks that the price during the peak production period is likely to decrease during production planning, it sells futures first in the futures market and buys back futures during the peak production period to make a profit in the spot market. losses can be compensated. In addition, if there is a risk that the price of electricity will rise when a sales contract is concluded, a broker can compensate for a loss in the spot market by first buying futures in the futures market and liquidating futures when the sales contract is fulfilled.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.4
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• pp.576-581
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• 2008

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.

• Environmental and Resource Economics Review
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• v.13 no.4
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• pp.593-619
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• 2004

This study analyzes the interfuel substitution of energy demand in Korean manufacturing sector using static and dynamic linear logit models. For the period of 1981~2002, this study uses petroleum, electricity, natural gas and coal as energy sources. According to the empirical results, firstly, the own-price elasticity of coal has been increased steadily even though its elasticity is smallest compared with those of other energy sources. On the other hand, price elasticity of natural gas is largest, but its value has been decreased after 1997. Price elasticities of petroleum and electricity are very stable over the sample period. One of the main features in trends of interfuel substitution is as follows. Substitution effect of a change in price of natural gas on both petroleum and coal has been increased especially after 1997. The implication of the empirical results is summarized as follows: First, the fact of inelastic own-price elasticity of petroleum implies that the dependency of Korean manufacturing sector on petroleum and coal will be persistent even in a sharp fluctuation of petroleum price. Second, the effects of price increase in natural gas on demand for petroleum and coal are very significant. Thus, price decline of natural gas rather than price declines of coal and petroleum could be more effective as an energy price policy for the reduction of $CO_2$ emission. The assessment on this implication will remain for future researches.