| Title |
Variation of Load Management Incentive Considering Prenotification Period |
| DOI |
https://doi.org/10.5370/KIEE.2012.61.11.1578 |
| Keywords |
Load management ; Incentive ; Yield curve ; Risk premium |
| Abstract |
There are 3 systems in incentive-based normal load management in Korea; day or hour-ahead, week-ahead, months-ahead. These are originally similar in their operational implementation, but differ in their pre-notification period. Therefore the incentive of these systems should be different according to prenotification period. This is the key problem in implementing these load managements. Customers participating in these load managements feel their economic differences, depending on the risk by prenotification dates. The shorter prenotification period, the more risk take the customers. This paper proposes the method of incentive variation in prenotification difference, by using the theory of financial yield curve, which is used in analysing short and long duration bond interesting rates and is reflecting risk premium in their period. |