• The Transactions of The Korean Institute of Electrical Engineers
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• v.63 no.8
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• pp.1025-1032
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• 2014

The effective energy management method will provide the significant advantage to the residential customers under real time pricing plan since it can reduce the electricity charge by controlling the energy consumption according to electricity rate. The earlier studies for load management mainly aim to minimize the electricity charges and peak power but put a less emphasis on the human comfort dwelling in the residence. The discomfort and displeasure from the energy management only focusing on reduction of electricity charge will make the residential customer reluctant to enroll the real time pricing plan. In this paper, therefore, we propose optimal load control strategy which aim to achieve not only minimizing the electricity charges but also maintaining human comfort by introducing "the human comfort coefficient." Using the human comfort coefficient, the energy management system can reflect the various human personality and control the loads within the range that the human comfort is maintained. Simulation results show that proposed load control strategy leads to significant reduction in the electricity charges and peak power in comparison with the conventional load management method.

• ETRI Journal
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• v.35 no.4
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• pp.677-686
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• 2013

In this paper, we first introduce a general architecture of an energy management system in a home area network based on a smart grid. Then, we propose an efficient scheduling method for home power usage. The home gateway (HG) receives the demand response (DR) information indicating the real-time electricity price, which is transferred to an energy management controller (EMC). Referring to the DR, the EMC achieves an optimal power scheduling scheme, which is delivered to each electric appliance by the HG. Accordingly, all appliances in the home operate automatically in the most cost-effective way possible. In our research, to avoid the high peak-to-average ratio (PAR) of power, we combine the real-time pricing model with the inclining block rate model. By adopting this combined pricing model, our proposed power scheduling method effectively reduces both the electricity cost and the PAR, ultimately strengthening the stability of the entire electricity system.

• Proceedings of the KIEE Conference
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• 1999.07c
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• pp.1202-1204
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• 1999

This paper proposes a value-based pricing suitable for deregulation situation in electricity market, where the value is measured based on the service quality such as system reliability. The proposed approach makes it possible to maximize social welfare, in that diversified service can produce the optimal combination set of demand and supply. The proposed pricing can also be applied to a direct load control.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.59 no.12
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• pp.2165-2172
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• 2010

This paper presents the operation algorithm of microgrid on the Real Time Pricing(RTP) for building the smart grid. RTP is higher power price variability than flat rate and time of use. However it has an effect on peak clipping and peak load shifting due to the increased price on peak time power demand. When the RTP are applied to the microgrid system, the proposed algorithm is able to be effective and economic operation. The implemented system is operated for the economic operation in microgrid connected with the power system. On the other hand, when the microgrid is operated on isolation mode, it focus on the improvement of stability and the power supply reliability of the sensitive loads. The test system are implemented and calculated on various operation modes based on non-dispachable generator output and RTP data for validating the proposed operation algorithm. The calculated results are compared to the implemented results using real-time simulator. It can be confirmed that the proposed operation system are identical results to the calculated one. When the proposed operation algorithm is applied to the system, it can be show the effectiveness of the peak clipping and peak load shifting and the improvement of economic feasibility.

• Korean Journal of Construction Engineering and Management
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• v.11 no.6
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• pp.54-64
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• 2010

A firm decides to go to the project based on its investment analysis. However, the cash flows generated from the real project can not be always coincident with what expected as it follows uncertain behavior and the asymmetric payoff caused by the managerial flexibilities involved in the real asset affects the project value. Amongst various managerial flexibilities entailed in most of the real assets, although investment delay has been known to enhance the project value thanks to its ability to provide new market information to management, the related research to select the time to invest have been just few. Therefore, this research aims to show the theoretical framework to decide when to invest reflecting the behaviors of increasing project value and loss recovery cost due to investment delay with option pricing, related financial economic, and variational theories.

• Journal of the Korean Data and Information Science Society
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• v.28 no.2
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• pp.251-260
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• 2017

The option pricing of Black와 Scholes (1973) and Merton (1973) has been widely reported to fail to reflect the time varying volatility of financial time series in many real applications. For example, Duan (1995) proposed GARCH option pricing method through Monte Carlo simulation. However, financial time series is known to follow a fat-tailed and leptokurtic probability distribution, which is not explained by Duan (1995). In this paper, in order to overcome such defects, we proposed the option pricing method based on GARCH models with normal mixture errors. According to the analysis of KOSPI200 option price data, the option pricing based on GARCH models with normal mixture errors outperformed the option pricing based on GARCH models with normal errors in the unstable period with high volatility.

• Korean Management Science Review
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• v.18 no.1
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• pp.29-39
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• 2001

Traditionally, companies have been concerned with making an investment decision either to go now or never to go forever. However, owing to the development of the theory of options pricing in a financial investment field and its introduction to the appraisal of real investments in these days, we are now partially allowed to derive the value of a managerial flexibility of real investment projects. In this paper, we derived a general mathematical model to price the option value of real investment projects assuming that they have only one-period of time under which uncertainty exists. This mathematical model was developed based on the opportunity cost concept. We will show a simple numerical example to illustrate how the mathematical model works comparing it with the existing models.

• Korean Management Science Review
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• v.20 no.1
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• pp.89-102
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• 2003

With the progress of Internet and e-commerce, there have been many researches on the market efficiency of the Internet markets using real price data. Contrary to the common expectations by many economists, most of the previous researches have fatted to prove that the Internet market is more efficient than the conventional market. This paper empirically analyzes the pricing behavior of Internet and conventional retailers in South Korea. We have collected real price data on CDs and TVs from various types of retailers, from which we have analyzed three aspects of pricing behavior : price level, price change over time, and price dispersion across the retailers. We have found that the average prices of CDs and TVs at the Internet retailers are lower than those at the conventional retailers. We have also found that there is a close association between the behaviors (e.g., magnitude and timing of changes) of TV prices at the Internet retailers and those at the conventional retailers. It has been observed that the range of the CD prices at the internet retailers is less than a half of the range at the conventional retailers, which can be considered as an evidence of a relatively stronger price competition at the Internet market compared with the conventional market.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.63 no.12
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• pp.1627-1636
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• 2014

In real-time electricity price environment, the energy management system can provide the significant advantage to the residential, commercial and industrial customers since it can reduce the electricity charge by controlling the load operation effectively in response to time-varying price. However, the earlier studies for load management mainly focus on the residential and commercial customers except for the industrial customers because most of load operations in industrial sector are intimately related with production schedule. So, it is possible that the inappropriate control of loads in industrial sector causes huge economic loss. In this paper, therefore, we propose load control algorithm for factory energy management system(F-EMS) to achieve not only minimizing the electricity charges but also maintaining production efficiency by considering characteristics of load operation and production schedule. Considering characteristics of load operation and production schedule, the proposed load control algorithm can reflect the various characteristics of specific industrial customer and control their loads within the range that the production efficiency is maintained. Simulation results show that the proposed load control algorithm for F-EMS leads to significant reduction in the electricity charges and peak power in industrial sector.

• Proceedings of the KIEE Conference
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• 2001.05a
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• pp.58-61
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• 2001

Under restructuring, not only real power pricing but also reactive power pricing is important for the system operation Especially, 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 generation that exceeds the power factor. To apply this method to an optimization problem, we developed optimal power flow based on interior point method. By using this IPM for the power system, the System operator can use this strategy for reactive power generation pricing and also the Generators can got the motivation to generate reactive power.