• 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.

• Environmental and Resource Economics Review
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• v.24 no.2
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• pp.365-410
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• 2015

Block-rate structures are widely used in utility-pricing, including the Korean residential electricity sector. In the case of the current pricing structure, Korean citizens are highly concerned about incurring excessive electricity costs. For these reasons, there have been many discussions concerning mitigation of the strict pricing structure. Existing studies on the residential electricity demand function under block-rate structure have the following three issues - the consumer's budget constraint is non-linear, perceived price under block-rate structure is uncertain, block-rate structure has endogeneity in the price variable. In this context, this paper estimates the residential electricity demand function using micro-level household expenditure data and simulates the impact of alternative block-pricing schedules.

• 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.

• The Journal of Korea Institute of Information, Electronics, and Communication Technology
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• v.13 no.2
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• pp.159-168
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• 2020

Current residential electricity rates, which are charged regardless of consumption patterns, have a problem of restricting consumer choice. In order to improve the problem, the Korea government started a demonstration project based on Time-Of-Use(TOU) pricing from September 2019. However, the analysis of its effect is still limited. This study analyzed the changes and limitations of TOU pricing compared to the current progressive pricing. The result showed that the high rate payer's bill decreased by up to 33.8 % while the low rate payer's bill increased by up to 117.7 %. This can lead to the problem of accepting electricity rates from a social point of view. In this study, TOU pricing based on progressive pricing was proposed to overcome the problem. The results presented the rate changes depending on the power consumption patterns while decreasing the average rate change from 32 % to -1.9 %. It means that the proposed pricing can support the TOU effect while maintaining the framework of the existing progressive pricing.

• 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.

• 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.

• Journal of Electrical Engineering and Technology
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• v.13 no.1
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• pp.11-19
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• 2018

With the development of smart grid technology, it has become a hotspot to increase benefits of both residential users and electric power companies through demand response technology and interactive technology. In this paper, the game theory is introduced to the interaction between residential users and an electric company, making a mutually beneficial situation for the two. This paper solves the problem of electricity pricing and load shifting in the interactive behavior by building the game-theoretic process, proposing the interaction strategy and doing the optimization. In the simulation results, the residential users decrease their cost by 11% mainly through shifting the thermal loads and the electric company improves its benefits by 5.6% though electricity pricing. Simulation analysis verifies the validity of the proposed method and shows great revenue for the economy of both sides.

• 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.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.62 no.2
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• pp.164-170
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• 2013

The commercial buildings are consuming about 30% of total energy used in Korea. And a large amount of energy consumption in commercial buildings is consumed by HVAC(Heating, Ventilation, Air Conditioning) system. Therefore, if we can reduce the energy consumption in HVAC or air-conditioning system in commercial buildings, the overall energy consumption in Korea can be reduced. Currently, an electricity charge called Time of Use (TOU) is applied to typical commercial buildings. This paper proposes the novel energy management method where the temperature setting of air-conditioning system are adjusted to minimize the use of electrical energy while indoor comfort level is retained. The simulation test for a typical commercial building shows that the proposed method gives over 10% savings in electricity bills and electricity consumption compared to the conventional air-conditioning method.