• Title/Summary/Keyword: Power market

Search Result 2,108, Processing Time 0.037 seconds

A Study on Methodology for Considering Risk in Power Transactions in Futures Market (선물 시공에서의 전력거래 위험 고려 방법론 연구)

  • Park, Jong-Bae;Joung, Man-Ho;Kim, Bal-Ho;Kim, Jin-Ho
    • Proceedings of the KIEE Conference
    • /
    • 2000.07a
    • /
    • pp.400-402
    • /
    • 2000
  • This paper presents a game theoretic approach for power transactions analysis in a competitive market. The considered competitive power market is regarded as PooICo model, and the participating players are restricted by only two generating entities for simplicity in this paper. The analysis is performed on the basis of marginal cost based relations of bidding price and bidding generations. That is, we assume that the bidding price of each player is determined by the marginal cost when the bidding generation is pre-determined. This paper models the power transaction as a two player game and analyzes by applying the Nash eauilibrium idea. The generalized game model for power transactions covering constant-sum(especially zero-sum), and nonconstant-sum game is developed in this paper. Also, the analysis for each game model are performed in the case studies. Here, we have defined the payoff of each player as the weighted sum of both player's profits.

  • PDF

A Game Theoretic Study on Power Transactions Analysis in a Competitive Market (경쟁적 전력시장에서의 전력거래 분석에 대한 게임이론접근 연구)

  • Park, Jong-Bae;Joung, Man-Ho;Kim, Bal-Ho;Jung, Jung-Won
    • Proceedings of the KIEE Conference
    • /
    • 1999.07c
    • /
    • pp.1344-1346
    • /
    • 1999
  • This paper presents a game theoretic approach for power transactions analysis in a competitive market. The considered competitive power market is regarded as PoolCO model, and the participating players are restricted by only two generating entities for simplicity in this paper. The analysis is performed on the basis of marginal cost based relations of bidding price and bidding generations. That is, we assume that the bidding price of each player is determined by the marginal cost when the bidding generation is pre-determined. This paper models the power transaction as a two player game and analyzes by applying the Nash eauilibrium idea. The generalized game model for power transactions covering constant-sum(especially zero-sum), and nonconstant-sum game is developed in this paper. Also, the analysis for each game model are Performed in the case studies. Here, we have defined the payoff of each player as the weighted sum of both player's profits.

  • PDF

Promotion of the Overseas Biomass Plant Business for a Domestic Power Company (국내 발전기업의 해외 바이오매스 플랜트 사업진출 방향)

  • Kim, Yeongsang;Moon, Seungjae;Yoo, Hoseon
    • Plant Journal
    • /
    • v.7 no.3
    • /
    • pp.42-47
    • /
    • 2011
  • One of domestic power generation companies, Korea East-West Power Corporation(EWP) had no performance in overseas business just two short years ago. However, EWP has accomplished breakthrough results with the profit of KRW 17.8 billion in 2010, only overseas business part. With overseas power plant growing fast, there is a possibility that EWP may face the limitation of sustainable growth with the current low income structure, which is mainly focused on commissioning and power plant management. Accordingly, this study was made on overseas biomass plant business participation plan through the establishment of joint venture. The characteristics of a joint venture establishment was searched, choosing business partner; the ideas of how to organize a joint venture was drawn, what the role of each partner in joint venture is, and what proper capital share is; and chose business field, considering changing global energy mix, renewable energy market scale, and growth prospects. Considering government policy for renewable energy vitalization and renewable energy market share, We chose the European union as a market to which our business entered.

  • PDF

A Proposal of Institutional Prerequisites to the Participation of Virtual Power Plant in Electricity Market under the Smart Grid Paradigm (스마트그리드 하에서 가상발전소의 전력시장 참여를 위한 제도적 선결요건에 관한 제언)

  • Chung, Koo-Hyung;Park, Man-Geun;Hur, Don
    • The Transactions of The Korean Institute of Electrical Engineers
    • /
    • v.64 no.3
    • /
    • pp.375-383
    • /
    • 2015
  • The virtual power plant (VPP) is a new technology to achieve flexibility as well as controllability, like traditional centralized power plants, by integrating and operating different types of distributed energy resources (DER) with the information communication technology (ICT). Though small-sized DERs may not be controlled in a centralized manner, these are more likely to be utilized as power plants for centralized dispatch and participate in the energy trade given that these are integrated into a unified generation profile and certain technical properties such as dispatch schedules, ramp rates, voltage control, and reserves are explicitly implemented. Unfortunately, the VPP has been in a conceptual stage thus far and its common definition has not yet been established. Such a lack of obvious guidelines for VPP may lead to a further challenge of coming up with the business model and reinforcing the investment and technical support for VPP. In this context, this paper would aim to identify the definition of VPP as a critical factor in smart grid and, at the same time, discuss the details required for VPP to actively take part in the electricity market under the smart grid paradigm.

Study on Optimal Trading Method of REC by Solar Power Generation (태양광 REC 최적 거래 방식에 관한 연구)

  • Nam, Youngsik;Lee, Jaehyung
    • Environmental and Resource Economics Review
    • /
    • v.29 no.1
    • /
    • pp.91-111
    • /
    • 2020
  • While the renewable energy portfolio standard (RPS) is in place to expand the scale of renewable energy generation, the power producer can obtain the renewable energy credit (REC) and use it as an incentive to operate the facility. RECs secured by solar power generation can be traded through spot market or fixed price contracts, and, in the spot market trading, power producers are exposed to the uncertainty of REC spot price. In this study, real option analysis is conducted to analyze the optimal threshold of REC spot price for the conversion of REC trading method by power producer considering the uncertainty of REC spot price. We calculated the optimal threshold of REC spot price that can convert the trading method of REC from spot market to fixed price contract. In conclusion, the spot market trading is a rational trading method when considering the uncertainty of REC price, but the fixed price bidding is a rational trading method when not considering the uncertainty of REC price.

Stock Market Response to Elections: An Event Study Method

  • CHAVALI, Kavita;ALAM, Mohammad;ROSARIO, Shireen
    • The Journal of Asian Finance, Economics and Business
    • /
    • v.7 no.5
    • /
    • pp.9-18
    • /
    • 2020
  • The research paper examines the influence of elections on the stock market. The study analyses whether the market reaction would be the same when a party wins and comes to power for the second consecutive time. The study employs Market Model Event study methodology. The sample period taken for the study is 2014 to 2019. A sample of 31 companies listed in Bombay Stock Exchange is selected at random for the purpose of the study. For the elections held in 2014, an event window of 82 days was taken with 39 days prior to the event and 42 days post event. The event (t0) being the declaration of the election results. For the elections held in 2019 an event window of 83 days was taken with 41 days prior to the event and 41 days post event. The results indicate that the market reacts positively with significantly positive Average Abnormal Returns. The findings of the study reveal that the impact on the market is not the same between any two elections even when the same party comes to power for the second time. The semi-strong form of efficient market hypothesis holds true in the context of emerging markets like India.

The Optimal Pourer Flow Considering the Characteristics of Electric Pourer Consumers (전력소비자 특성을 고려한 최적조류계산)

  • 김문영;백영식;송경빈
    • The Transactions of the Korean Institute of Electrical Engineers A
    • /
    • v.52 no.2
    • /
    • pp.107-113
    • /
    • 2003
  • In a deregulated electric power market, a demand function to consider the characteristics of electric power consumers should be required. It is essential that the optimal power flow algorithm with object function of social welfare maximization using the demand function for a competitive electric power market is applied to resolve in a point of economic benefits as well as the security of power systems. Therefore, in this paper, we implement the optimization problem based on linear programming to consider the characteristics of electric power consumers using the demand function and analyze not only the nodal cost for generations and demands but also the variation of demands as a function of the characteristics of electric power consumers through numerical studies.

The Concentration of Economic Power in Korea (경제력집중(經濟力集中) : 기본시각(基本視角)과 정책방향(政策方向))

  • Lee, Kyu-uck
    • KDI Journal of Economic Policy
    • /
    • v.12 no.1
    • /
    • pp.31-68
    • /
    • 1990
  • The concentration of economic power takes the form of one or a few firms controlling a substantial portion of the economic resources and means in a certain economic area. At the same time, to the extent that these firms are owned by a few individuals, resource allocation can be manipulated by them rather than by the impersonal market mechanism. This will impair allocative efficiency, run counter to a decentralized market system and hamper the equitable distribution of wealth. Viewed from the historical evolution of Western capitalism in general, the concentration of economic power is a paradox in that it is a product of the free market system itself. The economic principle of natural discrimination works so that a few big firms preempt scarce resources and market opportunities. Prominent historical examples include trusts in America, Konzern in Germany and Zaibatsu in Japan in the early twentieth century. In other words, the concentration of economic power is the outcome as well as the antithesis of free competition. As long as judgment of the economic system at large depends upon the value systems of individuals, therefore, the issue of how to evaluate the concentration of economic power will inevitably be tinged with ideology. We have witnessed several different approaches to this problem such as communism, fascism and revised capitalism, and the last one seems to be the only surviving alternative. The concentration of economic power in Korea can be summarily represented by the "jaebol," namely, the conglomerate business group, the majority of whose member firms are monopolistic or oligopolistic in their respective markets and are owned by particular individuals. The jaebol has many dimensions in its size, but to sketch its magnitude, the share of the jaebol in the manufacturing sector reached 37.3% in shipment and 17.6% in employment as of 1989. The concentration of economic power can be ascribed to a number of causes. In the early stages of economic development, when the market system is immature, entrepreneurship must fill the gap inherent in the market in addition to performing its customary managerial function. Entrepreneurship of this sort is a scarce resource and becomes even more valuable as the target rate of economic growth gets higher. Entrepreneurship can neither be readily obtained in the market nor exhausted despite repeated use. Because of these peculiarities, economic power is bound to be concentrated in the hands of a few entrepreneurs and their business groups. It goes without saying, however, that the issue of whether the full exercise of money-making entrepreneurship is compatible with social mores is a different matter entirely. The rapidity of the concentration of economic power can also be traced to the diversification of business groups. The transplantation of advanced technology oriented toward mass production tends to saturate the small domestic market quite early and allows a firm to expand into new markets by making use of excess capacity and of monopoly profits. One of the reasons why the jaebol issue has become so acute in Korea lies in the nature of the government-business relationship. The Korean government has set economic development as its foremost national goal and, since then, has intervened profoundly in the private sector. Since most strategic industries promoted by the government required a huge capacity in technology, capital and manpower, big firms were favored over smaller firms, and the benefits of industrial policy naturally accrued to large business groups. The concentration of economic power which occured along the way was, therefore, not necessarily a product of the market system. At the same time, the concentration of ownership in business groups has been left largely intact as they have customarily met capital requirements by means of debt. The real advantage enjoyed by large business groups lies in synergy due to multiplant and multiproduct production. Even these effects, however, cannot always be considered socially optimal, as they offer disadvantages to other independent firms-for example, by foreclosing their markets. Moreover their fictitious or artificial advantages only aggravate the popular perception that most business groups have accumulated their wealth at the expense of the general public and under the behest of the government. Since Korea stands now at the threshold of establishing a full-fledged market economy along with political democracy, the phenomenon called the concentration of economic power must be correctly understood and the roles of business groups must be accordingly redefined. In doing so, we would do better to take a closer look at Japan which has experienced a demise of family-controlled Zaibatsu and a success with business groups(Kigyoshudan) whose ownership is dispersed among many firms and ultimately among the general public. The Japanese case cannot be an ideal model, but at least it gives us a good point of departure in that the issue of ownership is at the heart of the matter. In setting the basic direction of public policy aimed at controlling the concentration of economic power, one must harmonize efficiency and equity. Firm size in itself is not a problem, if it is dictated by efficiency considerations and if the firm behaves competitively in the market. As long as entrepreneurship is required for continuous economic growth and there is a discrepancy in entrepreneurial capacity among individuals, a concentration of economic power is bound to take place to some degree. Hence, the most effective way of reducing the inefficiency of business groups may be to impose competitive pressure on their activities. Concurrently, unless the concentration of ownership in business groups is scaled down, the seed of social discontent will still remain. Nevertheless, the dispersion of ownership requires a number of preconditions and, consequently, we must make consistent, long-term efforts on many fronts. We can suggest a long list of policy measures specifically designed to control the concentration of economic power. Whatever the policy may be, however, its intended effects will not be fully realized unless business groups abide by the moral code expected of socially responsible entrepreneurs. This is especially true, since the root of the problem of the excessive concentration of economic power lies outside the issue of efficiency, in problems concerning distribution, equity, and social justice.

  • PDF

Heat-Electric Power Ratio Optimization To Maximize Profit of a Cogeneration Power Plant (열병합 발전기 수익 극대화를 위한 열전비 최적화)

  • Kim, Gun-Hoe;Lee, Jae-Heon;Moon, Seung-Jae;Chang, Taek-Soon
    • 한국전산유체공학회:학술대회논문집
    • /
    • 2008.03b
    • /
    • pp.381-384
    • /
    • 2008
  • This paper presents an operational technique to maximize profit of a cogeneration power plant. To minimize errors in a loss and gain analysis of a cogeneration power plant, the energy sale profit in the cost-based-pool electric power trade market, the heat sale profit, and the supplementary fund profit for electric power industry are taken into consideration. The objective is to optimize the heat-electric power ratio to maximize profit of a cogeneration power plant. Furthermore, the constrained bidding technique to optimize heat-electric power ratiocan be obtained. Profits from of a cogeneration power plant are composed of three categories, such as the energy sale profit in the cost-based-pool electric power trade market, the heat sale profit, and the supplementary fund profit for electric power industry. Profits of a cogeneration power plant are varied enormously by the operation modes. The profits are mainly determined by the amount of constrained heat generation in each trading time. And the three profit categories arecoupled tightly via the heat-electric power ratio. The result of this case study can be used as a reference to a cogeneration power plant under the power trading system considered in this case.

  • PDF

The improvement in operating rules of Cost Based Pool(CBP) considering the increasing Renewable Energy Capacity (신재생에너지 보급확대에 따른 국내전력시장 운영방안)

  • Lee, Jae-Gul;Nam, Su-Chul;Shin, Jeong-Hoon;Kim, Tae-Kyun
    • Proceedings of the KIEE Conference
    • /
    • 2008.07a
    • /
    • pp.580-583
    • /
    • 2008
  • As the construction of renewable energy generators is on the rise and gets bigger in size, researchers pay more and more attention to the impact of such facilities on the power market as well as on the stability of power grid system. In Korea, while studies on the latter, including calculating the marginal capacity of renewable energy generators, is being made, those on the former has not yet been performed. As such, this paper analyses the impact of a big renewable energy generators on the price and transaction cost of domestic power market and proposes ideas to minimize such influence by applying the technology of forecasting renewable energy.

  • PDF