• The Transactions of The Korean Institute of Electrical Engineers
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• v.60 no.2
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• pp.266-272
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• 2011

Real Time Pricing(RTP) is used not only to stabilize the price volatility in electricity market, but to hedge the price risk for Load Serving Entity(LSE). This paper presents an efficient method to reduce the risk of the price volatility in real-time electricity market. For designing the RTP, load patterns of customer are calculated by applying the demand elasticity and customer's utility is also analyzed to compute the RTP revenue through the risk-attribute of the LSE. In the end, the distribution of the LSE's profits can be evaluated to lead the optimal RTP value, depending on the level of customer's participation. Results from the case study based on PJM data are reported to illustrate the proposed method.

• Journal of Communications and Networks
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• v.12 no.3
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• pp.253-265
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• 2010

The problem of pricing for a telecommunication network is investigated with respect to the users' sensitivity to the pricing structure. A functional optimization problem is formulated, in order to compute price reallocations as functions of data collected in real time during the network evolution. No a-priori knowledge about the users' utility functions and the traffic demands is required, since adaptive reactions to the network conditions are sought in real time. To this aim, a neural approximation technique is studied to exploit an optimal pricing control law, able to counteract traffic changes with a small on-line computational effort. Owing to the generality of the mathematical framework under investigation, our control methodology can be generalized for other decision variables and cost functionals.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.33 no.5B
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• pp.334-343
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• 2008

In this work we propose a universal pricing machine, which incorporates a universal pricing framework for the future IEEE802.16 WiMAX service with multiple classes of service. A multimedia service is provided by a QoS provisioning scheme in the WiMAX network and universal pricing means that it can compute the price for any type of service in a unified framework. In the proposed pricing framework we incorporate multiple types of services such as the real time and nonreal time services that are supposed to be provided in the WiMAX network. To that purpose, let us first carry out an analysis on the current pricing scheme of Korean WiMAX service which incorporates only the data size. From that analysis we propose a new pricing scheme for the future WiMAX service that provides different service classes in the network. Via numerical experiment, we verify the implication of the work.

• Journal of Korean Institute of Industrial Engineers
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• v.23 no.3
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• pp.545-557
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• 1997

This paper deals with dynamic optimal pricing for new products by a firm which maximizes the discounted profit stream of it's own in a duopoly. The problem is constructed as differential games and dynamic optimization theory. Cost is assumed to decline as time goes on. A modified customer's choice model is formulated as a diffusion model and we solve a dynamic optimization problem by adopting the diffusion model. Since this paper focus on deriving real prices not showing a time trend, we formulate recursive form equations of costate variables(shadow price) and a simultaneous equation of price. Hence we derive a dynamic optimal pricing model for using in real market. In particular, we construct a dynamic optimal pricing model in the case that there are benefits from not only new subscribers but also previous subscribers. We analyze instant camera market in U.S.A(1976-1985) by utilizing the above model.

• Architectural research
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• v.19 no.3
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• pp.71-77
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• 2017

Dynamic pricing refers to a system in which a tariff varies, according to a level of charging and applied time depending on time change. The power billing system used in the Korean Electric Power Corporation (KEPCO) is based on time of use (TOU) pricing, which is one of the dynamic pricing systems. This paper aimed to determine the operational results of a variable refrigerant flow system, to which a new control algorithm was applied, in order to respond to dynamic pricing, in summer and the utility of the new control. To do this, real measured data was acquired from a VRF system installed in a building for educational purposes, where dynamic pricing was applied for about 100 days during summer time. At the maximum load operation time period in TOU, the new control minimized operation within the indoor comfort range, an increase in refrigerant evaporation temperature in the indoor unit and the number of revolutions in a compressor in the outdoor unit was limited. As a result, power usage was decreased by 11%, and the operational cost by 14.6%. Furthermore, measurement results using the Predicted Mean Vote (PMV) model, that represented satisfaction of thermal environment, showed that 82.8% to 90.4% of the occupants of the building were satisfied during operation when the new control was applied.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.2
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• pp.221-226
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• 2007

This paper suggests a valuation framework of investment project using the concept of real options. We show the valuation process of real assets using the risk-neutral pricing. Especially, we focus on the investment lag. Real assets have investment lag in general. The decision time and the payment time are not identical. So the investment lag should be considered when valuing real assets for reality. We provide the valuation process for real assets, including R&D project. The results of this paper can be used for the real assets valuation and strategic decision analysis.

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

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.51 no.1
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• pp.37-44
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• 2002

This Paper suggests reasonable pricing mathod fur Reactive Power in Optimal Power Flow for the system analysis. Under restructuring, not only real power pricing but also reactive power pricing is important for the system analysis and operation. If people just focus on real power pricing, the Generators may no generate reactive power voluntarily, because the Generators may not recover the cost of the reactive power generation. So making a reasonable reactive power pricing is becoming more important than any other time. In this paper, the authors set a Proper Power factor and price the portion of the reactive power that exceeds the power factor using Interior Point Method. By applying this method, the System operator can use this strategy for the analysis of reactive power generation pricing and the Generator can get the motivation to generate reactive power. The author develops fully optimized fast Primal Dual Interior Point Method with sparsity technique and applies this method to Reliability Test System (RTS24) and KEPCO 674 bus system (684 buses. 1279 lines). It shows adaptability and usefulness.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.25 no.11
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• pp.39-49
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• 2011

Smart Grid has two main objectives on both supply and demand aspects which are to distribute the renewable energy sources on supply side and to develop realtime price responses on demand side. Renewable energy does not consume fossil fuels, therefore it improves the eco-friendliness and saves the cost of power system operation at the same time. Demand response increases the flexibility of the power system by mitigating the fluctuation from renewable energies, and reduces the capacity investment cost by shedding the peak load to off-peak periods. Currently Smart Grid technologies mainly focus on energy monitoring and display services but it has been proved that enabling technologies can induce the higher demand responses through many pilot projects in USA. On this context, this paper provides a price responsive algorithm for HEMS (home energy management system) on the real time pricing environment. This paper identifies the demand response as a core function of HEMS and classifies the demand into 3 categories of fixed, transferable, and realtime responsive loads which are coordinated and operated for the utility maximization or cost minimization with the optimal usage combination of three kinds of demand.

• Journal of Electrical Engineering and Technology
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• v.8 no.6
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• pp.1296-1304
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• 2013

This study performed an analysis on power demand reduction effects exhibited by demand response programs, which are advanced from traditional demand-side management programs, in the smart grid environment. The target demand response systems for the analysis included incentive-based load control systems (2 month-ahead demand control system, 1~5 days ahead demand control system, and demand bidding system), which are currently implemented in Korea, and price-based demand response systems (mainly critical peak pricing system or real-time pricing system, currently not implemented, but representative demand response systems). Firstly, the status of the above systems at home and abroad was briefly examined. Next, energy saving effects and peak demand reduction effects of implementing the critical peak or real-time pricing systems, which are price-based demand response systems, and the existing incentive-based load control systems were estimated.