| Title |
A Study on the Analysis of System Marginal Price and Market Participant Benefits Reflecting Actual System Operational Constraints |
| Authors |
장재훈(Jae-Hun Jang) ; 신한솔(Han-Sol Shin) ; 곽규형(Kyu-Hyeong Kwag) ; 오효빈(Hyo-Bin Oh) ; 윤형석(Hyeong-Seok Yun) ; 김욱(Wook Kim) |
| DOI |
https://doi.org/10.5370/KIEE.2024.73.1.26 |
| Keywords |
Electricity Market; Electricity Market Pricing Methodologies; Social Welfare; System Marginal Price; Transmission Congestion Surplus |
| Abstract |
The Korean electricity market previously determined the system marginal price (SMP) without considering actual operational constraints under the Cost Based Pool electricity market system. Recently, in order to improve system operational problems, the pricing methodology was revised to reflect constraints, with the goal of introducing the actual system-based day-ahead market.
However, there are no studies comparing the methodologies before and after this change. This study used a mathematical model to simulate pricing methodologies both before and after the revision, deriving SMP, social welfare, and congestion surplus. This study evaluated the impact of the methodology change on the electricity market and underscored the need for further congestion cost studies. An analysis of this revision can serve as a reference for market and system operators to refine the domestic power market's pricing approach. It also assists market participants in managing financial risks and establishing countermeasures due to the methodology change. |