• The Transactions of The Korean Institute of Electrical Engineers
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• v.63 no.7
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• pp.889-895
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• 2014

Korea electric power industry had been under vertical monopoly but is typically getting restructured for free competition. An ideal pricing system under the competitive market system is 'unbundled pricing system' and 'marginal pricing system', but the current pricing system still adheres to the traditional bundled system and the average cost pricing system. Especially, progressive electricity rates for residential use reflect governmental policy-making which is focused on income redistribution & welfare, industrial supports and energy saving. This study proposes new and reasonable residential electricity pricing systems which are Time-Of-Use (TOU) and Real-Time Pricing (RTP) to reflect variations in the wholesale price of electricity. It also presents examples of various tariffs for residential electricity pricing systems.

• Proceedings of the KIEE Conference
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• 2002.07a
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• pp.435-437
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• 2002

This Paper presents the technical perspective on the Real Time Pricing(RTP). So far customer has no control on the electricity pricing. But the price hike in California makes changes in the electricity demand and pricing. In such environments. RTP has become an important role in Demand Side Management. Here the system configuration, advantages of RTP are described. Also the relationship between RTP and AMR is considered.

• 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.

• Journal of the Korean Operations Research and Management Science Society
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• v.39 no.1
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• pp.49-67
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• 2014

This paper proposes a real time pricing model for smart grid considering consumers' behavior, real time price elasticity, and exogenous price. Based on the proposed model, we found the weight of utility over cost is the most sensitive factor compared to other factors. Also, if the electricity price is set to be changed too sensitively to energy consumption, it is warned that real time pricing sometimes can cause increment of peak-time demand and volatility. Finally, real time pricing could be less efficient when the difference between the maximum and the minimum consumption level is small.

• 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.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.63 no.5
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• pp.644-651
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• 2014

The renewable energy system and the real-time pricing can provide the significant economic advantage for end-user of residential house. However, according to recent studies, high initial cost of renewable energy system such as photovoltaic (PV) system and lack of suitable load control methods adjusting electric power consumption in response to time-varying price are regarded as the major obstruction for introduction of renewable energy system and real-time pricing in residental household. In this paper, we propose automated optimal load control strategy which aim to achieve not only minimizing the electricity cost but also the increase in the utilization rates of PV generation power of residential PV house in real-time pricing environment. Simulation results show that our proposed optimal load control strategy leads to significant reduction in the electricity costs and increase in the utilization rates of power generated by PV system in comparison with the conventional PV house. Therefore, the proposed optimal load control strategy can provide more economic benefit to end-user.

• 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.

• 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.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.61 no.6
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• pp.804-809
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• 2012

This paper presents the economic impact of consumer participation in Real-Time Pricing (RTP). A computer model was developed to analyze the impact of real-time pricing on the average price, electricity sales, and the social welfare. Four revenue reconciliation alternative were introduced to illustrate the effect of RTP. Finally a case study was done to analyze the consequent impact of the dynamic load profile on the long-term fuel mix, and the results were compared with those of $5^{th}$ national power development plan.

• Journal of Electrical Engineering and Technology
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• v.4 no.1
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• pp.49-54
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• 2009

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 in a nodal auction model, and can also be applied to direct load control.