Koo-Hyung Chung

Electricity Market Design for the Incorporation of Various Demand-Side Resources in the Jeju Smart Grid Test-bed

Many countries are increasing their investments in smart grid technology to enhance energy efficiency, address climate change, and trigger a green energy revolution. In addition to these goals, Korea also seeks to promote national competitiveness, prepare for the growth of the renewable energy industry, and export industrialization through its strategic promotion of the smart grid. Given its inherent representativeness for Korean implementation of the smart grid and its growth potential, Jeju Island was selected by the Korean government as the site for smart grid testing in June 2009. This paper presents a new design for the electricity market and an operational scheme for testing Smart Electricity Services in the Jeju smart grid demonstration project. The Jeju smart grid test-bed electricity market is constructed on the basis of day-ahead and real-time markets to provide two-way electricity transaction environments. The experience of the test-bed market operation shows that the competitive electricity market can facilitate the smart grid deployment in Korea by allowing various demand side resources to be active market players.

An Analysis on Price Limits of Imported Power via Northeast Asian Power System Ties

This paper presents an engineering approach to derive the optimum price levels of transacted power. In this paper, with the assumption that power import is possible through the system connection in Northeast Asia regions, the upper price limit of imported power deserving economic efficiency was derived with respect to the time and amount of power import. The proposed approach was demonstrated based on the data from the National Power Development Planning in 2004 with the WASP model.

ISO Coordination of Generator Maintenance Scheduling in Competitive Electricity Markets using Simulated Annealing

To ensure that equipment outages do not directly impact the reliability of the ISOcontrolled grid, market participants request permission and receive approval for planned outages from the independent system operator (ISO) in competitive electricity markets. In the face of major generation outages, the ISO will make a critical decision as regards the scheduling of the essential maintenance for myriads of generating units over a fixed planning horizon in accordance with security and adequacy assessments. Mainly, we are concerned with a fundamental framework for ISO’s maintenance coordination in order to determine precedence of conflicting outages. Simulated annealing, a powerful, general-purpose optimization methodology suitable for real combinatorial search problems, is used. Generally, the ISO will put forward its best effort to adjust individual generator maintenance schedules according to the time preferences of each power generator (GENCO) by taking advantage of several factors such as installed capacity and relative weightings assigned to the GENCOs. Thus, computer testing on a four-GENCO model is conducted to demonstrate the effectiveness of the proposed method and the applicability of the solution scheme to large-scale maintenance scheduling coordination problems.

Economic Feasibility on the Interconnected Electric Power Systems in North-East Asia

The interstate electric power system, as an alternative for energy cooperation under regional economic block, was fervently debated prior to the restructuring of electric power industries and rapidly expanded in many regions since the 1990s. Especially, electric power system interconnection in the Northeast Asia region may bring considerable economic benefits since this region has strong supplementation in resource holdings, load shape, fuel mix, and etc. In this paper, we implement the ORIRES model, proposed by ESI of Russia, in order to analyze the economic feasibility on the Northeast Asia Region Electrical System Ties (NEAREST) project.

Development of Customer Oriented Load Management Software for Savings on Utility Bills in the Electricity Market

For electricity markets to function in a truly competitive and efficient manner, it is not enough to focus solely on improving the efficiencies of power supply. To recognize price-responsive load as a reliability resource, the customer must be provided with price signals and an instrument to respond to these signals, preferably automatically. This paper attempts to develop the Windows-based load management system in competitive electricity markets, allowing the user to monitor the current energy consumption or billing information, to analyze the historical data, and to implement the consumption strategy for cost savings with nine possible scenarios adopted. Finally, this modeling framework will serve as a template containing the basic concepts that any load management system should address.

A Proposal of Institutional Prerequisites to the Participation of Virtual Power Plant in Electricity Market under the Smart Grid Paradigm

The virtual power plant (VPP) is a new technology to achieve flexibility as well as controllability, like traditional centralized power plants, by integrating and operating different types of distributed energy resources (DER) with the information communication technology (ICT). Though small-sized DERs may not be controlled in a centralized manner, these are more likely to be utilized as power plants for centralized dispatch and participate in the energy trade given that these are integrated into a unified generation profile and certain technical properties such as dispatch schedules, ramp rates, voltage control, and reserves are explicitly implemented. Unfortunately, the VPP has been in a conceptual stage thus far and its common definition has not yet been established. Such a lack of obvious guidelines for VPP may lead to a further challenge of coming up with the business model and reinforcing the investment and technical support for VPP. In this context, this paper would aim to identify the definition of VPP as a critical factor in smart grid and, at the same time, discuss the details required for VPP to actively take part in the electricity market under the smart grid paradigm.

An Approach to Optimal Dispatch Scheduling Incorporating Transmission Security Constraints

The introduction of competition in electricity markets emphasizes the importance of sufficient transmission capacities to guarantee effective power transactions. Therefore, for the economic and stable electric power system operation, transmission security constrains should be incorporated into the dispatch scheduling problem. With the intent to solve this problem, we decompose a dispatch scheduling problem into a master problem (MP) and several subproblems (SPs) using Benders decomposition. The MP solves a general optimal power flow (OPF) problem while the SPs inspect the feasibility of OPF solution under respective transmission line contingencies. If a dispatch scheduling solution given by the MP violates transmission security constraints, then additional constraints corresponding to the violations are imposed to the MP. Through this iterative process between the MP and SPs, we derive an optimal dispatch schedule incorporating the post-contingency corrective rescheduling. In addition, we consider interruptible loads as active control variables since the interruptible loads can participate as generators in competitive electricity markets. Numerical examples demonstrate the efficiency of the proposed algorithm.

Analysis on Determining the Allocation Ratio of Transmission Service Costs Using the Arbitration Game

Abstract In many parts of the world, the electricity industry is undergoing unprecedented changes. Hence, in order to restructure the electricity industry readily and efficiently and minimize the confusion related to restructuring, it is required the systematic studies on transmission pricing and the allocation of transmission service costs between generators and distributors. However, the allocation ratio of transmission service costs have been determined by regulator arbitrarily under the common practice since there is not any criterion with respect to allocating transmission service costs even now. This paper demonstrates that determining the allocation ratio of transmission service costs between generators and distributors is regulators own authority using game theory. For the analysis, the competition for generators and distributors to determine own allocation ratio is mode led as the arbitration game.