• Environmental and Resource Economics Review
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• v.21 no.1
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• pp.93-127
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• 2012

We estimate how much KEPCO can save their loss and how much social welfare can be increased by applying the real-time pricing instead of current regulated retail price in the electricity market in order to analyze the problem of the regulated retail price which is fixed below the marginal cost. We estimate the demand functions of peak time and off-peak time in summer (June to August) and winter (December to February). We construct the supply function based on hourly step-wise linear marginal cost functions, too. We find that the increase of social welfare will be 67 billion won in summer if the fixed retail price is changed into the real-time pricing scheme. The total 705 billion won will be transferred from consumer surplus to producer surplus and the rest (67 billion won) will be saved from the reduction of deadweight loss among KEPCO's loss. In winter, the increase of social surplus will be 225 billion won and 1,174 billion won of KEPCO's loss will be transferred from consumer surplus. As a result, we conclude that the regulation of the retail price in the electricity market induces the social welfare loss and KEPCO suffers a huge loss.

• Journal of Energy Engineering
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• v.11 no.2
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• pp.142-148
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• 2002

The variations of real time electric price in competitive electricity markets have influence on electric power demands of the consumers. Residential, commercial, and industrial consumers with different characteristics cause the different price elasticity of the demand due to changing the pattern of consumption. Therefore, this paper analyze the effects of spot pricing for the change of the electric power demand based on the demand elasticity of each loads in competitive electricity market.

• Proceedings of the KIEE Conference
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• 2001.07a
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• pp.524-526
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• 2001

The variations of real time electric price in competitive electricity markets have influence on electric power demands of the consumers. Residential, commercial, and industrial consumers, with different characteristics cause the different price elasticity of the demand due to changing the pattern of consumption. Therefore, this paper calculate the elasticity of each loads and analysis the effects of electric power demands and spot pricing as a function of elasticity in competitive electricity market.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2001.11a
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• pp.307-337
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• 2001

In this paper, we propose the valuation frame of the IT(Information Technology) ventures using ROV(Real Options Valuation) model. Generally, ROV can comprises the traditional valuation method such as DCF(Discounted Cash Flow), which can measure only the tangible value of a firm from the expected future earnings, in that ROV can additionally measure the intangible value such as the strategic value of a firm in the uncertain environment. We set up the hypothetic IT venture future investment plan and assume that there are a growth option and a switching option consequently along the investment time horizon, which are caused by each characteristics of ventures and IT technologies, especially modularity. In the case that there are several embedded real options in the firm's investment plan in a row, we should apply the compound option pricing model as a real option valuation model in order to consider the value interaction between real options. In an addition, we present the results of optimal investment timing analysis using real options approach and compare them. with those of the original assumed investment timing.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.68 no.3
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• pp.405-415
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• 2019

The considerations of the electrical device' characteristics and the customers' satisfaction have been important criteria for efficient smart grid systems. In general, an electrical device is classified into a non-interruptible device or an interruptible device. The consideration of the type is an essential information for the efficient smart grid scheduling. In addition, customers' scheduling preferences or satisfactions have to be considered simultaneously. However, the existing research studies failed to consider both criteria. This paper proposes a new and efficient smart grid scheduling framework considering both criteria. The framework consists of two modules - 1) A day-head smart grid scheduling algorithm and 2) Real-time sudden demand negotiation framework. The first method generates the smart grid schedule efficiently using an embedded genetic algorithm with the consideration of the device's characteristics. Then, in case of sudden electrical demands, the second method generates the more efficient real-time smart grid schedules considering both criteria. In order to show the effectiveness of the proposed framework, comparisons with the existing relevant research studies are provided under various electricity demand scenarios.

• Proceedings of the KIEE Conference
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• 2011.07a
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• pp.73-74
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• 2011

수요반응은 스마트 그리드 솔루션 중에 하나로 각광 받고 있다. 수요반응의 종류가 다양하지만 스마트 그리드 구축을 위한 AMI (Advanced Metering Infrastructure)의 확대 보급이 예상됨에 따라 RTP(Real Time Pricing) 프로그램에 대한 관심이 증가하고 있다. 본 논문에서는 국외의 RTP 시행 사례들을 통해 RTP 방법과 효과를 분석하였고, 이를 바탕으로 국내 적용 방안에 대해 제안하였다.

• Proceedings of the KIEE Conference
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• 2001.07a
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• pp.533-535
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• 2001

This paper proposes a methodology to compute the servicing price of reactive power in electrical power market of competitive environment. The result of proposed method is proved by a 6-bus sample test system. In this paper we propose the real-time pricing method assigning to variable charges, the downstream power flow tracing assigning to fixed charges. The reactive power will be active by the proposed method through competitive electrical power market.

• The Journal of Society for e-Business Studies
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• v.14 no.1
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• pp.93-120
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• 2009

Content services on the Internet is getting attention as a new business model, selling digital content in real-time on the web. However, most of these content-based business is based on advertisement model rather than direct-payment-based business model. One of the difficulty in setting up charge-based content service is that the pricing paradigm of digital content is different from traditional pricing of products or services. The objective of this study is to empirically derive the feasible price response functions for these content services. Based on conjoint analysis of popular attributes of digital content, several price response function models were fitted against the conjoint data, using online movie viewers' preferences for different attributes of the service. Fitted function models were linear, multiplicative, exponential, attraction, and Gutenberg models. attraction model was found to be well-fit with the data for several specific combinations of attributes. Implications for pricing strategy is discussed at the end.

• Proceedings of the KIEE Conference
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• 2007.07a
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• pp.113-114
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• 2007

For restructure of korean power system, we needs research and development concerning RTP and Revenue Reconciliation. In these Implementations the real-time prices are updated at half-hourly or hourly intervals and in no case are the prices spatially differentiated. The implemented rates are based upon marginal generating costs with markups to account for system transmission and distribution costs or other revenue reconciliation needs. This paper analyzes how great is the impact of alternative price markup methods on measures of social welfare and customer responses. A case study and energy sales are also presented.

• Journal of Korean Institute of Industrial Engineers
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• v.41 no.5
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• pp.414-424
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• 2015

In this research, we consider a smart grid network of electricity with multiple consumers connected to a monopolistic provider. Each consumer can be informed the real time price changes through the smart meter and updates his consumption schedule to minimize the energy consumption expenditures by which the required power demand should be satisfied under the given real time pricing scheme. This real-time decision making problem has been recently studied through game-theoretic approach. The present paper contributes to the existing literature by incorporating storage appliance into the set of available household appliances which has somewhat distinctive functions compared to other types of appliances and would be regarded to play a significant role in energy consumption scheduling for the future smart grid. We propose a game-theoretic algorithm which could draw the optimal energy consumption scheduling for each household appliances including storage. Results on simulation data showed that the storage contributed to increase the efficiency of energy consumption pattern in the viewpoint of not only individual consumer but also whole system.