• Proceedings of the KIEE Conference
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• 2005.07a
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• pp.763-765
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• 2005

LMP based pricing system has many merits over SMP. One of them is that network congestion can be managed by the market price together with congestion revenue rights. Korean power system has a peculiar property that the transmission line where network congestion occurs is known and does not vary. For such a system, zonal pricing method is considered to be appropriate as it is simpler than nodal pricing. In this paper, we did feasibility study on zone grouping method and tendency of zonal price compared with nodal price.

• Journal of Energy Engineering
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• v.8 no.4
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• pp.505-511
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• 1999

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

• 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.

• Proceedings of the KIEE Conference
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• 2002.07a
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• pp.438-440
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• 2002

In deregulated power market, transmission pricing methodology should maintain non-discrimination amongst all participants while ensure that TRANSCOs recover their revenue requirements. The proposed transmission pricing methodology for Korea needs cost allocation ratios, such as allocation ratio of physical transport to network security and that of generators to loads. In this paper, we studied the nodal transmission price determined by the cost allocation factors and its influence on GENCOs and DISTCOs.

• Proceedings of the KIEE Conference
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• 2003.07a
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• pp.572-574
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• 2003

The congestion management is a key task for enhancing the effectiveness of transmission pricing mechanism in a competitive electricity market. In this paper, the zonal method of congestion management is analyzed quantitatively using equilibrium concept, and compared with the nodal pricing method. It is shown that the generation firm uses different strategies in the two methods, and the overall performance of zonal congestion management depends on the determination of zones.

• Proceedings of the KIEE Conference
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• 2002.07a
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• pp.428-431
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• 2002

본 논문에서는 경쟁적 전력시장에서 송전제약에 관한 비용을 적절히 할당하는 방법을 제시하고자 한다. 혼잡비용을 할당하는 방법으로는 모든 사용자들에게 똑같이 배분하는 방법과 혼잡의 원인을 제공한 사용자에게 정도에 따라 가중하여 혼잡비용을 할당하는 nodal pricing과 zonal pricing이 있다. 계산의 신속성과 복잡성으로 인해서 zonal pricing이 유용한 방법으로 사용되고 있다. 기존의 분할 기술은 계통운영자가 설정한 한계범위의 모선들을 zone으로 형성하는 통계적인 방법을 사용했다. 이 방법은 운영자의 임의성이 반영되는 모호한 알고리즘이라는 단점을 가지고 있다. 그래서 본 논문에서는 한계비용민감도를 이용한 계통분할 방법을 제안하였다.

• Journal of Electrical Engineering and Technology
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• v.12 no.6
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• pp.2196-2207
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• 2017

This paper presents a two-stage market auction model in a pool-based electricity market, which explicitly takes into account the system network security. The security network-constrained market auction model considers the use of corrective control to yield economically efficient actions in the post-contingency state, while ensuring a certain security level. Under this framework, the proposed model shows not only for quantifying the correlation between secure system operation and efficient market operation, but also for providing transparent information on the pricing system security for market participants. The two-stage market auction procedure is formulated using Benders decomposition (BD). In the first stage, the market participants bid in the market for maximizing their profit, and the independent system operator (ISO) clears the market based on social welfare maximization. System network constraints incorporating post-contingency control actions are described in the second stage of the market auction procedure. The market solutions, along with the BD, yield nodal spot prices (NSPs) and nodal congestion prices (NCPs) as byproducts of the proposed two-stage market auction model. Two benchmark systems are used to test and demonstrate the effectiveness of the proposed model.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.51 no.8
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• pp.379-384
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• 2002

In the competitive electricity market, various pricing methods are developed and practiced in many countries. Among these pricing methods, marginal loss factor(MLF) can be applied to reflect the marginal cost of network losses. For the calculation of MLF, power flow method has been used to calculate system loss deviation. However, this power flow method shows some shortcomings such as necessity of regional reference node, and absence of an ability to consider network constraints like line congestion, voltage limit, and generation output limit. The former defect might affects adversely to the equity of market participants and the latter might generate an inappropriate price signals to customers and generators. To overcome these defects, the utilization of optimal power flow(OPF) is suggested to get the system loss deviation in this paper. 30-bus system is used for the case study to compare the MLF results by the power flow and the OPF method for 24-hour dispatching and pricing, Generator payment and customer charge are compared with these two methods also. The results show that MLF by OPF reflects the power system condition more faithfully than that of by the conventional power flow method

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.55 no.4
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• pp.156-162
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• 2006

Transmission zones can be defined based on LMPs. Each zone consists of nodes with similar LMPs, and zonal price is determined by average nodal prices in each zone.[1] Network reduction is still important for the analysis of zonal systems under electricity market environments, even though the computing capability of computer system can deal with entire power systems. The Similarity Index is a good performance measure for the network reduction.[2] It can be applied to the network reduction between zones categorized by the nodal prices. This paper deals with a novel network reduction method between zones based on the similarity Index. Line admittances of reduced network were determined by using the least square method. The proposed method was verified by IEEE 39 bus test system.

• Journal of Energy Engineering
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• v.15 no.4 s.48
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• pp.256-276
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• 2006

Transmission congestion is one of the key factors to local market power in competitive electricity markets. Financial transmission rights provide the financia] protection to their holders by paying back the congestion rent. A variety researches have shown that the existing trading mechanisms on transmission right can exacerbate market power. This paper proposes an alternative methodology in mitigating the local market power using the Contingent Transmission Rights on the locational marginal pricing scheme. The proposed methodology was demonstrated with the Optimal Power Flow.