• Journal of Energy Engineering
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• v.21 no.1
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• pp.81-85
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• 2012

Electricity is the basic building block of economic development, and constitutes one of the vital infra-structural inputs in socio-economic development. The demand for electricity has been increasing due to extensive urbanization, industrialization, and a rise in the standard of living, as is the case with residential electricity consumption. This paper attempts to estimate the consumer surplus and the economic value of the residential consumption of electricity in Seoul to assist in decision-making in electricity management. The estimated consumer surplus represents the value of the area under the demand curve, above the actual price that is paid for residential electricity consumption. The estimated annual consumer surplus and economic value for the year 2005 amount to 2,144.7 and 3,727.4 billion won, respectively. The estimates per kWh were 184.9 and 316.0 won, respectively, which imply that the consumer surplus and the economic value of residential electricity consumption significantly outweigh the average price of electricity in 2005 of 91.1 won per kWh.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.22 no.6
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• pp.134-140
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• 2008

A switch in congestion management nile in an electricity market may have positive or negative impact on the surplus of a market participant. As a number of wholesale electricity markets around the world either have already adopted or plan to implement Locational Marginal Pricing (LMP) for energy and congestion management, it is necessary to study the economic impact of a change in congestion management in the Korean electricity market. However, the impact of congestion management on consumer costs and generator surplus has not been studied for the electricity market in Korea. This paper examines how a change in congestion management affects consumer costs and generator surplus in the Korean electricity market.

• Journal of Energy Engineering
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• v.24 no.2
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• pp.9-16
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• 2015

As electricity is an indispensable input to human's existence and industrial production, economic benefits arise from consumption. The economic benefits of the electricity consumption are useful information in various fields of electricity-related policy. Therefore, this study attempts to value the economic benefits from electricity use. The economic benefit of electricity consumed is the area under the demand curve which made of the sum of the actual consumer expenditure and the consumer surplus. Consumer expenditure can be easily observed but the information on price elasticity of demand is necessarily required to compute consumer surplus. This study derives the estimates for price elasticities through literature review. The price elasticities of the electricity demand for residence, industry, and commercial are estimated to be -0.332, -0.351, and -0.263, respectively. Because the consumer surplus of the electricity consumption for residence, industry, and commercial are computed to be 191.54, 143.44, and 231.91 won per kWh, respectively. Given that average prices of electricity use were 127.02, 100.70, and 121.98 won per kWh for the year 2013, the economic benefit are calculated to be 318.56, 244.14, and 353.89 won per kWh, respectively. We can convert the values to 321.96, 246.75, and 357.67 won per kWh in 2014 constant price, respectively, using consumer price index. They can be used in the economic feasibility analysis of a new electricity supply project.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.52 no.10
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• pp.616-623
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• 2003

Competition among electric generation companies is a major goal of restructuring in the electricity industry, The trading system in an electricity market has been one of the most important issues in deregulated electricity market. This paper deals with comparisons of the major two types of the trading system: compulsory pool market and bilateral contract market. The two trading systems are compared quantitatively from the viewpoint of consumer's surplus and social welfare, This paper, also, proposes a unified model of Cournot and Bertrand for analyzing the mixed trading system of pool market and bilateral contract market. Nash equilibrium of the unified model is derived by criteria for participating in bilateral contract market. Numerical results from a sample case show that a mixed trading system of pool market and price-competitive bilateral market is beneficial to consumer from the view points of consumer's surplus.

• New & Renewable Energy
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• v.17 no.2
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• pp.1-8
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• 2021

We estimated the price range of electricity transactions under the prosumer system, considering the spread of renewable energy and the prospect of introducing a surplus power trading system between power consumers in Korea. The range (min/max) of power transaction prices was estimated by prosumers and consumers who could purchase electricity from utilities if needed. It is assumed that utilities purchased electricity from prosumers and consumers under a Time-of-Use (TOU) rate, trading at a monthly price. The range of available transaction prices according to the amount of power purchased from utilities and the amount of transaction power was also estimated. The price range that can be traded is expected to vary depending on variables such as the TOU rate, purchased and surplus power, levelized cost of electricity, etc.

• Journal of Energy Engineering
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• v.11 no.4
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• pp.324-331
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• 2002

ln competitive electricity market, useful technique would be required to calculate settlement amount for electric power traded between market participants and KPX since a number of market partici-pants would appear and trade electric power. Especially calculation of constrained on/off compensation amount can be complicated, and needs to be understood clearly by market participants to avoid unnecessary disputes. This paper presents a technique to settle more easily constrained on/off compensation amount using surplus function. In this technique, a surplus is calculated by each dispatched values and then the compen-sation amount is calculated by the difference of each surpluses. By doing this, settlement amount can be cal-culated by summing the trading amount and the compensation amount.

• Transactions of the Korean hydrogen and new energy society
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• v.28 no.3
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• pp.231-237
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• 2017

With worldwide efforts to increase the portion of renewable energy for $CO_2$ reductions, a lot of attention has been paid to P2G (power-to-gas) in Europe and Japan to efficiently utilize the surplus electricity. In this paper, economic feasibility analysis has been carried out for P2G using PEM water electrolysis by reflecting current economic status in Korea. In addition, efficiency and electricity price required to be competent in Korean market were provided. Based on cash flow diagrams, unit production costs for $H_2$ and $CH_4$ were estimated and profitability of P2G using PEM water electrolysis was analyzed.

• Transactions of the Korean Society of Mechanical Engineers B
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• v.33 no.4
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• pp.278-287
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• 2009

Plug-in hybrid electric vehicle (PHEV) with capability of being recharged from the power-grid will reduce oil consumption. Also, the PHEV will affect the utility operations by adding additional electricity demand for charging. In this research, the power-grid impact by demand of PHEV charging is presented and the optimal charging control strategy for utility operators is proposed with simulated data. The penetration of PHEV is assumed to be 50% in the circumstances of Korean passenger car market and Korean power-grid market limitedly. To obtain smooth load shape and utilize the surplus electricity in power-grid at midnight and dawn, the peak of charging demand should be controlled to be located before 4:00 a.m., and the time slot which can supply the electricity power to PHEV should be allowed between 1:00 a.m.$\sim$7:00 a.m.

• Journal of Electrical Engineering and Technology
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• v.9 no.1
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• pp.90-97
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• 2014

Nash Cournot Equilibrium (NCE) has been widely used in a competitive electricity market to analyze generation firms' strategic production quantities. Congestion on a transmission network may lead to a mixed strategy NCE. Mixed strategy is complicated to understand, difficult to compute, and hard to implement in practical market. However, Stackelberg model based equilibrium does not have any mixed strategy, even under congestion in a transmission line. A guide to understanding mixed strategy equilibrium is given by analyzing a cycling phenomenon in the players' best choices. This paper connects the concept of leader-follower in Stackelberg model with relations between generation firms on both sides of the congested line. From the viewpoint of social welfare, the surplus analysis is presented for comparison between the NCE and the Stackelberg equilibrium (SE).

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.53 no.8
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• pp.484-489
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• 2004

When the energy resource available to a particular plant (be it coal, oil, gas, water, or nuclear fuel) is a limiting factor in the operation of the plant, the entire economic dispatch calculation must be done differently. Each economic dispatch calculation must account for what happened before and what will happen in the future. This paper presents a formulation and a solution method for the optimization problem with a fuel constraint in a competitive electricity market. Take-or- Pay (TOP) contract for an energy resource is the typical constraint as a limiting factor. Two approaches are proposed in this paper for modeling the dispatch calculation in a market mechanism. The approaches differ in the subject who considers and inserts the fuel-constraint into its optimization problem. Market operator and each power producer having a TOP contract are assumed as such subjects. The two approaches are compared from the viewpoint of profits. surplus. and social welfare on the basis of Nash Equilibrium.