• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.7
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• pp.1157-1166
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• 2008

This paper presents a new approach for the evaluation of location marginal prices (LMPs) considering demand-side bidding (DSB) in a competitive electricity market. The stabilization of the electric power supply and demand balance is one of the major important activities in electric power industry. In this paper, we present an analytical method for calculation of LMPs considering DSB, which has opportunity to compete with generating units, as England & Wales Pool's DSB scheme[1]. Also, we propose a new approach that LMP considering DSB is divided into three components. The proposed approach can be used for the evaluation of demand-side bidding into the electricity market and the assessment of the influence of DSB on total production costs and LMPs as well as three components.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.55 no.8
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• pp.341-350
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• 2006

This paper presents a new methodology to draw the components of locational marginal price (LMP) in electricity market. Recently, the changing environments surrounding electricity industries resulted in the unbundled services provided by electricity market players, which may require the new pricing mechanisms based on the LMP. The changed pricing mechanisms will provide the price signals of time and location to the market participants. Most of the existing studies of LMP are based on the Lagrangian multipliers as shadow prices to evaluate the equivalent values of constraints or factors for security, reliability and quality. However, the shadow prices cannot provide enough information for components of LMP. In this paper, therefore, we proposed a new approach that LMP is divided into three components. To do this, we first present the method for shadow prices calculation and then break down LMP into a variety of parts corresponding to the concerned factors. The proposed approach is applied to 5-bus and modified IEEE 14-bus sample system in order to verify its validity.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.1
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• pp.25-33
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• 2008

This paper presents a new approach of a evaluation of location marginal prices(LMPs) considering demand response resources in the competitive electricity market. The stabilization of the electric power supply and demand balance has been one of the major important activities in electric power industry. Recently, much attention is paid to the demand-side resources which are responsive to incentives or time-varying prices and existing power system planning and operation activities are incorporated with the so-called demand response resources. In this paper, we first present an analytical method for calculation of LMPs considering demand response resources and then break down the LMPs into three components. In this study, we assume that Korean power system consists of two major regions, one which is the metropolitan and the other is non-metropolitan region. In the case study, we have considered several LMPs cases with different use of locational demand response resource and we can obtain a locational signal to demand response resources. Also, the economics of demand response resources are evaluated, compared with the increase of transmission line capacity and of generation capacity.

• Journal of the Korean Geographical Society
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• v.38 no.6
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• pp.949-960
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• 2003

The marginal implicit price of air quality can be measured by taking a partial derivative of hedonic price function (HPF) with respect to the level of air quality. It has been pointed out that the size of the marginal implicit price varies with the use of different function forms, different estimation methods, and the different ways of measuring air quality level in estimating HPF. In addition to these factors, this study shows theoretically and empirically the way housing properties are represented on a digital map could differentiate the size of marginal implicit price of air quality when GIS is used to measure location attributes of the housing properties in the Korean apartment market. Furthermore, this study shows that the degree of difference in the marginal implicit price due to the manner in which housing properties are represented on a digital map can be larger than the degree of difference in the marginal implicit price due to using different function forms and estimation methods. The major implication from the results of this study is that one should carefully try diverse ways of representing housing properties in the Korean apartment market on a digital map in the process of estimating HPF, as he or she usually tries diverse function forms and estimation methods, to see if the value of the marginal implicit price of air quality varies substantially.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.58 no.5
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• pp.911-917
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• 2009

This paper introduces a sequential clustering technique as a tool for an effective grouping of transmission systems. The interconnected network system retains information about the location of each line. With this information, this paper aims to carry out initial clustering through the transmission usage rate, compare the similarity measures of regional information with the similarity measures of location price, and introduce the techniques of the clustering method. This transmission usage rate uses power flow based on congestion costs and similarity measurements using the FCM(Fuzzy C-Mean) algorithm. This paper also aims to prove the propriety of the proposed clustering method by comparing it with existing clustering methods that use the similarity measurement system. The proposed algorithm is demonstrated through the IEEE 39-bus RTS and Korea power system.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.60 no.2
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• pp.257-265
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• 2011

As the competitive market system has been introduced to the electrical power trade, the priority concern would be that the price of electrical power should be reasonable. It is because, when this rule is solid, we can avoid the distortion of competition and assure the greater efficiency in management. LMP(Locational Marginal Price) means marginal price at each bus. This components consist of energy, loss and congestion cost. At this point, the LMP result that is calculated by traditional model is changeable by the location of the slack and can not be used in bilateral Transaction. This paper proposed algorithm is proved its rationality and credibility by comparing the result of the simulation of virtual 6_bus system that is calculated by traditional method, and showed that the LMP components are changed according to the Transaction Strategy. Furthermore, It shows the effect of additional congestion cost on the transmission line that has bottle neck frequently by simulation.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.58 no.10
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• pp.1902-1910
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• 2009

This paper presents a graphical windows-based program for the education and training for novel network reduction. The object of developed simulator is to provide users with a simple and useable tool for gaining an intuitive feel for power system analysis. The developed simulator consists of the main module (MMI,GUI), the location marginal price module (LMP), the clustering module and network reduction module. Each module has a separate graphical and interactive interfacing window. The developed simulator needs with the PSS/E input data format, generator cost function, location information. Line admittances of reduced network was determined by using the power flow method(Newton-Raphson). So line flow of reduced network is almost same to original power system. Results of reduced network are compared on the window in the tabular format. Therefore, the developed simulator can be utilized as a useful tool for effective education and training for power system analysis.