| Title |
Details and implications of reformed Korean day-ahead electricity market |
| Authors |
옥기열(Ki-Youl Ok) ; 이성우(SungWoo Lee) ; 박민수(MinSu Park) ; 주안진(Anziin Ju) ; 조성봉(Sung-Bong Cho) |
| DOI |
https://doi.org/10.5370/KIEE.2021.70.7.969 |
| Keywords |
Electricity market; Day-ahead market; System Marginal Price; Ancillary Service; Unconstrained schedule; Constrained schedule; Constrained OFF; Constrained ON; Make Whole Payment; Day-Ahead Margin Assurance Payment |
| Abstract |
Korean government has established plans to restructure its electricity market in the era of energy transition. As a part of the plan, Korea Power Exchange has reformed day-ahead market as a first step of its two-stage market reform roadmap. Current day-ahead market using unconstrained schedule does not consider operating reserve requirements, transmission congestion and must-run generations. For these reasons, most of the real-time generations are different from those of day-ahead contracts and system marginal price determined in the day-ahead market does not reflect various system conditions. Deliverable day-ahead contracts reflecting actual system conditions are a prerequisite for the introduction of real-time balancing market. Improved price signal through system marginal price reflecting physical system conditions and newly established frequency reserve price will attract relevant resources for system flexibility. Market simulation results show improved performance of price signal without increasing consumer charges significantly. |