Power market operation 발표
-
Upload
independent -
Category
Documents
-
view
3 -
download
0
Transcript of Power market operation 발표
Power PlanningPower Market
Power System
Power Market Operation
Sang-Jin Chung T ampJ Construction Co Ltd
+82-10-5234-6134sjchungkpxorkr
Copyright 2011 by KPX co Ltd All rights reserved
IIII
II
IIIIII
Power Business Overview
Electricity Market
Recent Market Results
Market IssuesⅣⅣⅣⅣ
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Power Business Overview
II
Electric Power SystemGeneration Sites amp Fuel MixTransmission System NetworkPeak Demand amp Capacity Margin
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
NamjejuSeogwipoAndukSin-Jeju
HanlaSungsan
JocheonDong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
UijeongbuSungdong
HwasungSin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-GangjinHaenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PPMuju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-MasanSin-Gimhae
Bukbusan
Pusan CC Nam-Pusan
Kori NPSin-Onsan
Ulsan TP CC
Wolseong NPSeo-DaeguBuk-Daegu
Sunsan
GoryeongDaeguSin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Sin-Yangsan
Sin-Youngin
Sin-SungnamDong-Seoul
Migum
Gonjiam
CHARACTERISTICS Isolated power grid within Korean peninsular
High growth rates of power consumption
- Annual increase rates middot lsquo91-rsquo95 109 lsquo96-rsquo00 74 lsquo01-rsquo05 66 lsquo06-rsquo10 56
Highly dependent on foreign energy resources
- 964 of primary energy imported (232 million toe lsquo08)
Primary energy resources - Oil 431 Coal 276 LNG 153 Nuclear 140
KEY STATISTICS (2010) People served (million) 50 Generating capacity (MW) 76078 Peak loads (MW) 71308 Total transmission lines (C-Km) 30676 Electricity traded annually (GWh) 406000 Generators (above 20MW) 372 ea
4
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Bundang
Seoul
Sanchung
HapchunCheongsong
IncheonPucheon
Pyungtaek
Anyang
Youngkwang
Chungju
Chuam
Yeosu
Honam Kwangyang
Sumjinkang
YongdamMuju
SeocheonBoryeong
POSCO
Sin-Incheon Paldnag
Chungpyung
Euiam
ChuncheonHwachun
Hadong
Samrangjin
SamcheonpoBusan
Kori
Andong
Yangyang
Kangreung
Uljin
Imha
Youngnam
Wolseong
Small Hydro (Pocheon etc)
Soyangkang
Ilsan
Youngheung
TaeanLGBugok
Ulsan
Daechung
Dangjin
Seo-Incheon YoungdongDonghae
Yulchon
Jeju
(Unit 10 MW)
53180
99
120
180
5048
45 905045
180 180
180
90
4033
74
50
40
400 300
180
300
400
40
247140
39
400
115
53
590
278
314590
6
60
10011
128
720
2
3
2
959
60
41
40
60 10
70
65Chungpyung
As of Dec 31 2010
Capacity by Fuels(Unit MW)
Nuclear17716(233
)Oil5805(76
)Hydro5524(73
)Renewable1762(23) Coal
24800(326)
LNG20471(269)
5
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Characteristics
Direct Current Line- Connect the main land to Jeju Island
345kVMain transmission system
Distribution system- Connected to major areas of consumption
154kV
Second HVDC Line between main land and Jeju island is being built by 2012( 300MW rArr 700MW)
765kVMass transmission system
(Unit C-km Numbers of SS)
154kV 20700 628345kV 8552 88765kV 755 6Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
Namjeju SeogwipoAnduk Sin-Jeju
Hanla
Sungsan
Jocheon
Dong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
Uijeongbu
Sungdong
Hwasung
Sin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-Gangjin
Haenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PP
Muju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-Masan
Sin-Gimhae
Bukbusan
Pusan CCNam-Pusan
Kori NP
Sin-Onsan
Ulsan TP CC
Wolseong NPSeo-Daegu
Buk-DaeguSunsan
GoryeongDaegu
Sin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Gwangyang Steel
Sin-Yangsan
Sin-Youngin
Sin-Sungnam
Dong-Seoul
Migum
Gonjiam
Hadong TPSamcheonpo TPPusan CC
Gwangyang Steel
6
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
A peak demand of 71GW occurred on Dec 15 2010bull68 increase compared to the last yearlsquos peak bullHigher than expected due to the extended cold waves
The capacity margin was just around 62 (the lowest since 2001)bullHas gradually decreased due to the delayed construction in facilities
bullMay improve from 2012 with the generator additions
45000
50000
70000 (UnitMW)
65000
60000
55000
rsquo04 rsquo05 rsquo06 rsquo07 rsquo08 rsquo10
62790(08)
62290(56)
54630(66)51260
(82)
58990(80)
Reserve margin
As of Dec 2010 71308(68)
Peak demand(Growth rate)
122 113
105
72 91
62
66800(64)
79
rsquo09
7
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power SystemElectricity MarketIIII
Key Features Market Operations - Procedures- Biddings- Load Forecasting- Generation Scheduling - Metering- Settlement
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Mandatory Poolbull All generators(ge 1 MW) and retailers should trade(buy and sell) electric power through the market All market participants should register as the KPX member
bull The market players are GENCOs(sellers) and KEPCO(the single buyer)
Generator Bidding Poolbull Only the supply(generation) side bid into the pool with their generator availabilities for each trading day
bull The buyer does not bid and the purchaser KEPCO acts as a price taker in the market KPX forecasts the hourly electricity demand for the trading day
bull The market clearing is processed hourly base prices and volumes are fixed day-ahead for 24 hours of the following day
9
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
IIII
II
IIIIII
Power Business Overview
Electricity Market
Recent Market Results
Market IssuesⅣⅣⅣⅣ
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Power Business Overview
II
Electric Power SystemGeneration Sites amp Fuel MixTransmission System NetworkPeak Demand amp Capacity Margin
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
NamjejuSeogwipoAndukSin-Jeju
HanlaSungsan
JocheonDong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
UijeongbuSungdong
HwasungSin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-GangjinHaenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PPMuju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-MasanSin-Gimhae
Bukbusan
Pusan CC Nam-Pusan
Kori NPSin-Onsan
Ulsan TP CC
Wolseong NPSeo-DaeguBuk-Daegu
Sunsan
GoryeongDaeguSin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Sin-Yangsan
Sin-Youngin
Sin-SungnamDong-Seoul
Migum
Gonjiam
CHARACTERISTICS Isolated power grid within Korean peninsular
High growth rates of power consumption
- Annual increase rates middot lsquo91-rsquo95 109 lsquo96-rsquo00 74 lsquo01-rsquo05 66 lsquo06-rsquo10 56
Highly dependent on foreign energy resources
- 964 of primary energy imported (232 million toe lsquo08)
Primary energy resources - Oil 431 Coal 276 LNG 153 Nuclear 140
KEY STATISTICS (2010) People served (million) 50 Generating capacity (MW) 76078 Peak loads (MW) 71308 Total transmission lines (C-Km) 30676 Electricity traded annually (GWh) 406000 Generators (above 20MW) 372 ea
4
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Bundang
Seoul
Sanchung
HapchunCheongsong
IncheonPucheon
Pyungtaek
Anyang
Youngkwang
Chungju
Chuam
Yeosu
Honam Kwangyang
Sumjinkang
YongdamMuju
SeocheonBoryeong
POSCO
Sin-Incheon Paldnag
Chungpyung
Euiam
ChuncheonHwachun
Hadong
Samrangjin
SamcheonpoBusan
Kori
Andong
Yangyang
Kangreung
Uljin
Imha
Youngnam
Wolseong
Small Hydro (Pocheon etc)
Soyangkang
Ilsan
Youngheung
TaeanLGBugok
Ulsan
Daechung
Dangjin
Seo-Incheon YoungdongDonghae
Yulchon
Jeju
(Unit 10 MW)
53180
99
120
180
5048
45 905045
180 180
180
90
4033
74
50
40
400 300
180
300
400
40
247140
39
400
115
53
590
278
314590
6
60
10011
128
720
2
3
2
959
60
41
40
60 10
70
65Chungpyung
As of Dec 31 2010
Capacity by Fuels(Unit MW)
Nuclear17716(233
)Oil5805(76
)Hydro5524(73
)Renewable1762(23) Coal
24800(326)
LNG20471(269)
5
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Characteristics
Direct Current Line- Connect the main land to Jeju Island
345kVMain transmission system
Distribution system- Connected to major areas of consumption
154kV
Second HVDC Line between main land and Jeju island is being built by 2012( 300MW rArr 700MW)
765kVMass transmission system
(Unit C-km Numbers of SS)
154kV 20700 628345kV 8552 88765kV 755 6Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
Namjeju SeogwipoAnduk Sin-Jeju
Hanla
Sungsan
Jocheon
Dong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
Uijeongbu
Sungdong
Hwasung
Sin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-Gangjin
Haenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PP
Muju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-Masan
Sin-Gimhae
Bukbusan
Pusan CCNam-Pusan
Kori NP
Sin-Onsan
Ulsan TP CC
Wolseong NPSeo-Daegu
Buk-DaeguSunsan
GoryeongDaegu
Sin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Gwangyang Steel
Sin-Yangsan
Sin-Youngin
Sin-Sungnam
Dong-Seoul
Migum
Gonjiam
Hadong TPSamcheonpo TPPusan CC
Gwangyang Steel
6
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
A peak demand of 71GW occurred on Dec 15 2010bull68 increase compared to the last yearlsquos peak bullHigher than expected due to the extended cold waves
The capacity margin was just around 62 (the lowest since 2001)bullHas gradually decreased due to the delayed construction in facilities
bullMay improve from 2012 with the generator additions
45000
50000
70000 (UnitMW)
65000
60000
55000
rsquo04 rsquo05 rsquo06 rsquo07 rsquo08 rsquo10
62790(08)
62290(56)
54630(66)51260
(82)
58990(80)
Reserve margin
As of Dec 2010 71308(68)
Peak demand(Growth rate)
122 113
105
72 91
62
66800(64)
79
rsquo09
7
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power SystemElectricity MarketIIII
Key Features Market Operations - Procedures- Biddings- Load Forecasting- Generation Scheduling - Metering- Settlement
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Mandatory Poolbull All generators(ge 1 MW) and retailers should trade(buy and sell) electric power through the market All market participants should register as the KPX member
bull The market players are GENCOs(sellers) and KEPCO(the single buyer)
Generator Bidding Poolbull Only the supply(generation) side bid into the pool with their generator availabilities for each trading day
bull The buyer does not bid and the purchaser KEPCO acts as a price taker in the market KPX forecasts the hourly electricity demand for the trading day
bull The market clearing is processed hourly base prices and volumes are fixed day-ahead for 24 hours of the following day
9
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Power Business Overview
II
Electric Power SystemGeneration Sites amp Fuel MixTransmission System NetworkPeak Demand amp Capacity Margin
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
NamjejuSeogwipoAndukSin-Jeju
HanlaSungsan
JocheonDong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
UijeongbuSungdong
HwasungSin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-GangjinHaenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PPMuju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-MasanSin-Gimhae
Bukbusan
Pusan CC Nam-Pusan
Kori NPSin-Onsan
Ulsan TP CC
Wolseong NPSeo-DaeguBuk-Daegu
Sunsan
GoryeongDaeguSin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Sin-Yangsan
Sin-Youngin
Sin-SungnamDong-Seoul
Migum
Gonjiam
CHARACTERISTICS Isolated power grid within Korean peninsular
High growth rates of power consumption
- Annual increase rates middot lsquo91-rsquo95 109 lsquo96-rsquo00 74 lsquo01-rsquo05 66 lsquo06-rsquo10 56
Highly dependent on foreign energy resources
- 964 of primary energy imported (232 million toe lsquo08)
Primary energy resources - Oil 431 Coal 276 LNG 153 Nuclear 140
KEY STATISTICS (2010) People served (million) 50 Generating capacity (MW) 76078 Peak loads (MW) 71308 Total transmission lines (C-Km) 30676 Electricity traded annually (GWh) 406000 Generators (above 20MW) 372 ea
4
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Bundang
Seoul
Sanchung
HapchunCheongsong
IncheonPucheon
Pyungtaek
Anyang
Youngkwang
Chungju
Chuam
Yeosu
Honam Kwangyang
Sumjinkang
YongdamMuju
SeocheonBoryeong
POSCO
Sin-Incheon Paldnag
Chungpyung
Euiam
ChuncheonHwachun
Hadong
Samrangjin
SamcheonpoBusan
Kori
Andong
Yangyang
Kangreung
Uljin
Imha
Youngnam
Wolseong
Small Hydro (Pocheon etc)
Soyangkang
Ilsan
Youngheung
TaeanLGBugok
Ulsan
Daechung
Dangjin
Seo-Incheon YoungdongDonghae
Yulchon
Jeju
(Unit 10 MW)
53180
99
120
180
5048
45 905045
180 180
180
90
4033
74
50
40
400 300
180
300
400
40
247140
39
400
115
53
590
278
314590
6
60
10011
128
720
2
3
2
959
60
41
40
60 10
70
65Chungpyung
As of Dec 31 2010
Capacity by Fuels(Unit MW)
Nuclear17716(233
)Oil5805(76
)Hydro5524(73
)Renewable1762(23) Coal
24800(326)
LNG20471(269)
5
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Characteristics
Direct Current Line- Connect the main land to Jeju Island
345kVMain transmission system
Distribution system- Connected to major areas of consumption
154kV
Second HVDC Line between main land and Jeju island is being built by 2012( 300MW rArr 700MW)
765kVMass transmission system
(Unit C-km Numbers of SS)
154kV 20700 628345kV 8552 88765kV 755 6Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
Namjeju SeogwipoAnduk Sin-Jeju
Hanla
Sungsan
Jocheon
Dong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
Uijeongbu
Sungdong
Hwasung
Sin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-Gangjin
Haenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PP
Muju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-Masan
Sin-Gimhae
Bukbusan
Pusan CCNam-Pusan
Kori NP
Sin-Onsan
Ulsan TP CC
Wolseong NPSeo-Daegu
Buk-DaeguSunsan
GoryeongDaegu
Sin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Gwangyang Steel
Sin-Yangsan
Sin-Youngin
Sin-Sungnam
Dong-Seoul
Migum
Gonjiam
Hadong TPSamcheonpo TPPusan CC
Gwangyang Steel
6
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
A peak demand of 71GW occurred on Dec 15 2010bull68 increase compared to the last yearlsquos peak bullHigher than expected due to the extended cold waves
The capacity margin was just around 62 (the lowest since 2001)bullHas gradually decreased due to the delayed construction in facilities
bullMay improve from 2012 with the generator additions
45000
50000
70000 (UnitMW)
65000
60000
55000
rsquo04 rsquo05 rsquo06 rsquo07 rsquo08 rsquo10
62790(08)
62290(56)
54630(66)51260
(82)
58990(80)
Reserve margin
As of Dec 2010 71308(68)
Peak demand(Growth rate)
122 113
105
72 91
62
66800(64)
79
rsquo09
7
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power SystemElectricity MarketIIII
Key Features Market Operations - Procedures- Biddings- Load Forecasting- Generation Scheduling - Metering- Settlement
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Mandatory Poolbull All generators(ge 1 MW) and retailers should trade(buy and sell) electric power through the market All market participants should register as the KPX member
bull The market players are GENCOs(sellers) and KEPCO(the single buyer)
Generator Bidding Poolbull Only the supply(generation) side bid into the pool with their generator availabilities for each trading day
bull The buyer does not bid and the purchaser KEPCO acts as a price taker in the market KPX forecasts the hourly electricity demand for the trading day
bull The market clearing is processed hourly base prices and volumes are fixed day-ahead for 24 hours of the following day
9
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
NamjejuSeogwipoAndukSin-Jeju
HanlaSungsan
JocheonDong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
UijeongbuSungdong
HwasungSin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-GangjinHaenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PPMuju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-MasanSin-Gimhae
Bukbusan
Pusan CC Nam-Pusan
Kori NPSin-Onsan
Ulsan TP CC
Wolseong NPSeo-DaeguBuk-Daegu
Sunsan
GoryeongDaeguSin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Sin-Yangsan
Sin-Youngin
Sin-SungnamDong-Seoul
Migum
Gonjiam
CHARACTERISTICS Isolated power grid within Korean peninsular
High growth rates of power consumption
- Annual increase rates middot lsquo91-rsquo95 109 lsquo96-rsquo00 74 lsquo01-rsquo05 66 lsquo06-rsquo10 56
Highly dependent on foreign energy resources
- 964 of primary energy imported (232 million toe lsquo08)
Primary energy resources - Oil 431 Coal 276 LNG 153 Nuclear 140
KEY STATISTICS (2010) People served (million) 50 Generating capacity (MW) 76078 Peak loads (MW) 71308 Total transmission lines (C-Km) 30676 Electricity traded annually (GWh) 406000 Generators (above 20MW) 372 ea
4
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Bundang
Seoul
Sanchung
HapchunCheongsong
IncheonPucheon
Pyungtaek
Anyang
Youngkwang
Chungju
Chuam
Yeosu
Honam Kwangyang
Sumjinkang
YongdamMuju
SeocheonBoryeong
POSCO
Sin-Incheon Paldnag
Chungpyung
Euiam
ChuncheonHwachun
Hadong
Samrangjin
SamcheonpoBusan
Kori
Andong
Yangyang
Kangreung
Uljin
Imha
Youngnam
Wolseong
Small Hydro (Pocheon etc)
Soyangkang
Ilsan
Youngheung
TaeanLGBugok
Ulsan
Daechung
Dangjin
Seo-Incheon YoungdongDonghae
Yulchon
Jeju
(Unit 10 MW)
53180
99
120
180
5048
45 905045
180 180
180
90
4033
74
50
40
400 300
180
300
400
40
247140
39
400
115
53
590
278
314590
6
60
10011
128
720
2
3
2
959
60
41
40
60 10
70
65Chungpyung
As of Dec 31 2010
Capacity by Fuels(Unit MW)
Nuclear17716(233
)Oil5805(76
)Hydro5524(73
)Renewable1762(23) Coal
24800(326)
LNG20471(269)
5
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Characteristics
Direct Current Line- Connect the main land to Jeju Island
345kVMain transmission system
Distribution system- Connected to major areas of consumption
154kV
Second HVDC Line between main land and Jeju island is being built by 2012( 300MW rArr 700MW)
765kVMass transmission system
(Unit C-km Numbers of SS)
154kV 20700 628345kV 8552 88765kV 755 6Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
Namjeju SeogwipoAnduk Sin-Jeju
Hanla
Sungsan
Jocheon
Dong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
Uijeongbu
Sungdong
Hwasung
Sin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-Gangjin
Haenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PP
Muju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-Masan
Sin-Gimhae
Bukbusan
Pusan CCNam-Pusan
Kori NP
Sin-Onsan
Ulsan TP CC
Wolseong NPSeo-Daegu
Buk-DaeguSunsan
GoryeongDaegu
Sin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Gwangyang Steel
Sin-Yangsan
Sin-Youngin
Sin-Sungnam
Dong-Seoul
Migum
Gonjiam
Hadong TPSamcheonpo TPPusan CC
Gwangyang Steel
6
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
A peak demand of 71GW occurred on Dec 15 2010bull68 increase compared to the last yearlsquos peak bullHigher than expected due to the extended cold waves
The capacity margin was just around 62 (the lowest since 2001)bullHas gradually decreased due to the delayed construction in facilities
bullMay improve from 2012 with the generator additions
45000
50000
70000 (UnitMW)
65000
60000
55000
rsquo04 rsquo05 rsquo06 rsquo07 rsquo08 rsquo10
62790(08)
62290(56)
54630(66)51260
(82)
58990(80)
Reserve margin
As of Dec 2010 71308(68)
Peak demand(Growth rate)
122 113
105
72 91
62
66800(64)
79
rsquo09
7
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power SystemElectricity MarketIIII
Key Features Market Operations - Procedures- Biddings- Load Forecasting- Generation Scheduling - Metering- Settlement
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Mandatory Poolbull All generators(ge 1 MW) and retailers should trade(buy and sell) electric power through the market All market participants should register as the KPX member
bull The market players are GENCOs(sellers) and KEPCO(the single buyer)
Generator Bidding Poolbull Only the supply(generation) side bid into the pool with their generator availabilities for each trading day
bull The buyer does not bid and the purchaser KEPCO acts as a price taker in the market KPX forecasts the hourly electricity demand for the trading day
bull The market clearing is processed hourly base prices and volumes are fixed day-ahead for 24 hours of the following day
9
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Bundang
Seoul
Sanchung
HapchunCheongsong
IncheonPucheon
Pyungtaek
Anyang
Youngkwang
Chungju
Chuam
Yeosu
Honam Kwangyang
Sumjinkang
YongdamMuju
SeocheonBoryeong
POSCO
Sin-Incheon Paldnag
Chungpyung
Euiam
ChuncheonHwachun
Hadong
Samrangjin
SamcheonpoBusan
Kori
Andong
Yangyang
Kangreung
Uljin
Imha
Youngnam
Wolseong
Small Hydro (Pocheon etc)
Soyangkang
Ilsan
Youngheung
TaeanLGBugok
Ulsan
Daechung
Dangjin
Seo-Incheon YoungdongDonghae
Yulchon
Jeju
(Unit 10 MW)
53180
99
120
180
5048
45 905045
180 180
180
90
4033
74
50
40
400 300
180
300
400
40
247140
39
400
115
53
590
278
314590
6
60
10011
128
720
2
3
2
959
60
41
40
60 10
70
65Chungpyung
As of Dec 31 2010
Capacity by Fuels(Unit MW)
Nuclear17716(233
)Oil5805(76
)Hydro5524(73
)Renewable1762(23) Coal
24800(326)
LNG20471(269)
5
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Characteristics
Direct Current Line- Connect the main land to Jeju Island
345kVMain transmission system
Distribution system- Connected to major areas of consumption
154kV
Second HVDC Line between main land and Jeju island is being built by 2012( 300MW rArr 700MW)
765kVMass transmission system
(Unit C-km Numbers of SS)
154kV 20700 628345kV 8552 88765kV 755 6Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
Namjeju SeogwipoAnduk Sin-Jeju
Hanla
Sungsan
Jocheon
Dong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
Uijeongbu
Sungdong
Hwasung
Sin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-Gangjin
Haenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PP
Muju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-Masan
Sin-Gimhae
Bukbusan
Pusan CCNam-Pusan
Kori NP
Sin-Onsan
Ulsan TP CC
Wolseong NPSeo-Daegu
Buk-DaeguSunsan
GoryeongDaegu
Sin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Gwangyang Steel
Sin-Yangsan
Sin-Youngin
Sin-Sungnam
Dong-Seoul
Migum
Gonjiam
Hadong TPSamcheonpo TPPusan CC
Gwangyang Steel
6
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
A peak demand of 71GW occurred on Dec 15 2010bull68 increase compared to the last yearlsquos peak bullHigher than expected due to the extended cold waves
The capacity margin was just around 62 (the lowest since 2001)bullHas gradually decreased due to the delayed construction in facilities
bullMay improve from 2012 with the generator additions
45000
50000
70000 (UnitMW)
65000
60000
55000
rsquo04 rsquo05 rsquo06 rsquo07 rsquo08 rsquo10
62790(08)
62290(56)
54630(66)51260
(82)
58990(80)
Reserve margin
As of Dec 2010 71308(68)
Peak demand(Growth rate)
122 113
105
72 91
62
66800(64)
79
rsquo09
7
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power SystemElectricity MarketIIII
Key Features Market Operations - Procedures- Biddings- Load Forecasting- Generation Scheduling - Metering- Settlement
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Mandatory Poolbull All generators(ge 1 MW) and retailers should trade(buy and sell) electric power through the market All market participants should register as the KPX member
bull The market players are GENCOs(sellers) and KEPCO(the single buyer)
Generator Bidding Poolbull Only the supply(generation) side bid into the pool with their generator availabilities for each trading day
bull The buyer does not bid and the purchaser KEPCO acts as a price taker in the market KPX forecasts the hourly electricity demand for the trading day
bull The market clearing is processed hourly base prices and volumes are fixed day-ahead for 24 hours of the following day
9
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Characteristics
Direct Current Line- Connect the main land to Jeju Island
345kVMain transmission system
Distribution system- Connected to major areas of consumption
154kV
Second HVDC Line between main land and Jeju island is being built by 2012( 300MW rArr 700MW)
765kVMass transmission system
(Unit C-km Numbers of SS)
154kV 20700 628345kV 8552 88765kV 755 6Jeju TP
Yangju
Seo-Incheon
Youngheung TP
Hanrim CC
Namjeju SeogwipoAnduk Sin-Jeju
Hanla
Sungsan
Jocheon
Dong-Jeju
Sanji
Seo-Incheon CC
Incheon TP CCSin-Incheon
Sin-Sihung
Sin-Bupyung
Sin-Dukheun
ChungbuYoungdeungpo
Youngseo
Seo-seoul
Uijeongbu
Sungdong
Hwasung
Sin-suwonPyungtaek TP CC
AnsanSin-DangjinDangjin TP
Taean TP
Sin-onyang
Boryeong TP CC Chungyang
Gunsan
Sin-Gimje
Youngwang NP
Sin-Gwangju
Sin-Hwasun
Sin-Gangjin
Haenam CSYeosu NP
GwangyangHadong TP
Sin-Namwon Euiryong
Sancheong PP
Muju PP
Sin-OkcheonSinkaedong
Chungwon
Sin-Jincheon
Sin-Gosung
Samcheonpo TP
In-Masan
Sin-Gimhae
Bukbusan
Pusan CCNam-Pusan
Kori NP
Sin-Onsan
Ulsan TP CC
Wolseong NPSeo-Daegu
Buk-DaeguSunsan
GoryeongDaegu
Sin-Kyeongsan
UljuSin-Ulsan
Sin-Youngju
Sin-Youngil
Cheongsong PP
Uljin NP
Donghae
Yangyang PP
Sin-Jecheon
Sin-Gapyung
Sin-Ansung
Sin-seosan
Sin-Yangje
Sin-Ansan
Sin-Taebaek
Gwangyang Steel
Sin-Yangsan
Sin-Youngin
Sin-Sungnam
Dong-Seoul
Migum
Gonjiam
Hadong TPSamcheonpo TPPusan CC
Gwangyang Steel
6
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
A peak demand of 71GW occurred on Dec 15 2010bull68 increase compared to the last yearlsquos peak bullHigher than expected due to the extended cold waves
The capacity margin was just around 62 (the lowest since 2001)bullHas gradually decreased due to the delayed construction in facilities
bullMay improve from 2012 with the generator additions
45000
50000
70000 (UnitMW)
65000
60000
55000
rsquo04 rsquo05 rsquo06 rsquo07 rsquo08 rsquo10
62790(08)
62290(56)
54630(66)51260
(82)
58990(80)
Reserve margin
As of Dec 2010 71308(68)
Peak demand(Growth rate)
122 113
105
72 91
62
66800(64)
79
rsquo09
7
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power SystemElectricity MarketIIII
Key Features Market Operations - Procedures- Biddings- Load Forecasting- Generation Scheduling - Metering- Settlement
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Mandatory Poolbull All generators(ge 1 MW) and retailers should trade(buy and sell) electric power through the market All market participants should register as the KPX member
bull The market players are GENCOs(sellers) and KEPCO(the single buyer)
Generator Bidding Poolbull Only the supply(generation) side bid into the pool with their generator availabilities for each trading day
bull The buyer does not bid and the purchaser KEPCO acts as a price taker in the market KPX forecasts the hourly electricity demand for the trading day
bull The market clearing is processed hourly base prices and volumes are fixed day-ahead for 24 hours of the following day
9
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
A peak demand of 71GW occurred on Dec 15 2010bull68 increase compared to the last yearlsquos peak bullHigher than expected due to the extended cold waves
The capacity margin was just around 62 (the lowest since 2001)bullHas gradually decreased due to the delayed construction in facilities
bullMay improve from 2012 with the generator additions
45000
50000
70000 (UnitMW)
65000
60000
55000
rsquo04 rsquo05 rsquo06 rsquo07 rsquo08 rsquo10
62790(08)
62290(56)
54630(66)51260
(82)
58990(80)
Reserve margin
As of Dec 2010 71308(68)
Peak demand(Growth rate)
122 113
105
72 91
62
66800(64)
79
rsquo09
7
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power SystemElectricity MarketIIII
Key Features Market Operations - Procedures- Biddings- Load Forecasting- Generation Scheduling - Metering- Settlement
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Mandatory Poolbull All generators(ge 1 MW) and retailers should trade(buy and sell) electric power through the market All market participants should register as the KPX member
bull The market players are GENCOs(sellers) and KEPCO(the single buyer)
Generator Bidding Poolbull Only the supply(generation) side bid into the pool with their generator availabilities for each trading day
bull The buyer does not bid and the purchaser KEPCO acts as a price taker in the market KPX forecasts the hourly electricity demand for the trading day
bull The market clearing is processed hourly base prices and volumes are fixed day-ahead for 24 hours of the following day
9
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power SystemElectricity MarketIIII
Key Features Market Operations - Procedures- Biddings- Load Forecasting- Generation Scheduling - Metering- Settlement
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Mandatory Poolbull All generators(ge 1 MW) and retailers should trade(buy and sell) electric power through the market All market participants should register as the KPX member
bull The market players are GENCOs(sellers) and KEPCO(the single buyer)
Generator Bidding Poolbull Only the supply(generation) side bid into the pool with their generator availabilities for each trading day
bull The buyer does not bid and the purchaser KEPCO acts as a price taker in the market KPX forecasts the hourly electricity demand for the trading day
bull The market clearing is processed hourly base prices and volumes are fixed day-ahead for 24 hours of the following day
9
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Mandatory Poolbull All generators(ge 1 MW) and retailers should trade(buy and sell) electric power through the market All market participants should register as the KPX member
bull The market players are GENCOs(sellers) and KEPCO(the single buyer)
Generator Bidding Poolbull Only the supply(generation) side bid into the pool with their generator availabilities for each trading day
bull The buyer does not bid and the purchaser KEPCO acts as a price taker in the market KPX forecasts the hourly electricity demand for the trading day
bull The market clearing is processed hourly base prices and volumes are fixed day-ahead for 24 hours of the following day
9
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Cost Based Pool (CBP)bull The cost (not the price) of each generator is bid into the poolndash The generation cost is determined monthly by the Generation Cost Evaluation Committee(GCEC) based on the fuel prices in the previous month
ndash As mentioned before the generators bid only their availabilitybull The System Marginal Price(SMP) is determined in the process of Price Setting Scheduling ndash SMP reflects actual production costs of generators(start-up no-load incremental cost)
bull The Capacity Payment(CP) is paid by for the availability declared(MW) ndash CP is paid to all generators(the Centrally Dispatching Units(ge 20 MW)) who submit offer data whether or not dispatched
ndash CP is determined at every year and it is adjusted considering the level of reserve margin which can be the signal of investments
CONCOFF Payment are payed for the differences between the scheduled and the actual generations
10
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Marginal Loss Factor(MLF) for the transmission loss introduced( rsquo07)
- To minimize the long-term social cost by the incentives to generation investment in heavy load center (Generation+Transmission)
- To operate optimally the resources in the short-term by considering the locational value of generations The transmission losses are considered
- MLFs are applied to generator nodes Application to the load nodes is not necessary because the KEPCO is the single buyer
- As the stranded costs were incurred a relaxation factor was introduced to prevent the abrupt change of generator revenues(10 increase in each year)
Definition of MLF
-
11
Change of generation at the reference bus MLF = ------------------------------------------------------- Change of load at a specific bus = 1 + Loss Load increment where Loss change of total loss in the network Load increment incremental load at a certain bus
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Types of of Ancillary Services 1) Frequency Control GFAGC 2) Generation Reserves Operational reserves provided by fast start generators
3) Black Starts 1 or 2 Self start-up generators per region
4) Voltage Regulation Service Obligation of reactive power supply
Ancillary Services PaymentsbullCompensation for ancillary services is paid according to their contributions ie GFAGC service performances are assessd by the performance index
bullCo-optimization between energy and ancillary is possible bullThe economic dispatch principle (merit order) is fully met ie the roles of each types of the generator is fulfilled according to their functions
ie the Base load(Coal) Max energy output the Peaker(LNG) Effective load following by providing AGC service
12
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
The reference capacity payment(RCP) is adjusted according to the forecasted capacity margin by regions (metropolitanotherJeju island) when it is beyond a reasonable value ie12
The seasonalhourly coefficients are applied to RCP to ensure the sufficient generation capacity in peak times
All the offered capabilities of the centrally dispatched generators(over 20 MW) are compensated by hourly based RCP regardless of their actual operations
13
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 14
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 15
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Daily Biddingbull Contentsndash Hourly availabilityndash Technical characteristics
bull Bidding timendash Closing time AM 1000 trading-day ahead(D-1)ndash Term 34 hours (1900 D-1 ~ 0400 D+1) Default Data is used if generators donrsquot submit their data due to communication failures or human errors
Re-Offersbull Starting Time 1001 AM before the trading daybull Closure Time l (one) hour before the trading hour ldquoRe-offerrdquo is allowed only when the generator has faults and it cannot meet the declared availability
16
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Real-timeReal-time DispatchDispatch
(D-0)(D-0)
A Day-ahead A Day-ahead MMarketarket( D-1 )( D-1 )
Daily bidamp offermade by standing bid procedure
5 am 10am
Daily bid SubmissionGate Closure
16pm
Pumping bidGate Closure
15pm
SMPDisclosur
e
Trading hour
20pm
18pm
System Operation ScheduleDisclosure
19pm
Bid change Closure1 hour before trading hour faults outages
17
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 18
P(MW)P(MW)
CCii ($hour)($hour)
No-load -
Cost
Generation Cost [WonkWh] = Heat rate [kcalkWh] Fuel cost [Wonkcal]
- Gencos submit monthly the fuel cost data to the Committee
- Fuel consumption rates are measured at 25 50 75 100 of the gen output level during the performance test
Cost curve Determine the efficiency coefficients(abc)
Cost(CCost(Cii) = ) = (aP(aP22 + bP + c + bP + c) x Fuel ) x Fuel CostCost $hour Gcalhour $hour Gcalhour $Gcal$Gcal
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Forecasting toolbull Load forecasting system (LOFY)
Application bull For the fairness and transparency of the market pricing the output of LOFY is used without any adjustments or modifications
bull However for the operational generation schedule specific knowledge experiencesjudgement of the engineer who is in charge is added
Using databasebull Weather forecasting data (Korea Meteorological Administration)
bull Historical load data (using similar day pattern data)
LOFY was developed by the KEPRI(Korea Electric Power Research Institute) and updated their historical data base every year 19
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Generation Scheduling Program
Delivered by ALSTOM-ESCA (now ALSTOM-Grid) 1999bullin 2010 changed into New RSC with MIP(Mixed Integer Program) solution
Major Functions bull Market-based scheduling and day-ahead dispatch scheduling
bull The price setting is made by the unconstrained schedule and the generator dispatch planning by the constrained schedule
20
RSC( Resource Scheduling and Commitment) determines the generator startstop operations and also the generation outputs which can minimize the total generation cost while balancing supply and demand
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedulingbull The cost data bidding data and forecasted load data are input for generation scheduling
bull Least cost generation scheduling reflects only the technical characteristics of generators
bull When the scheduling is finished the hourly SMPrsquos are published at 300 PM
System Operational Schedulingbull The forecasted load data can be adjusted for the system operational scheduling
bull All the system constraints such as the reserve margin transmission limits fuel restrictions co-generation for district heat supply are reflected in the scheduling
bull The scheduling result(startsstops dispatch targets) are notified to Gencos before 600 PM to prepare their operations 21
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Price Setting Schedule System Operational Schedule
Features
To produce the hourly SMP in the market
To produce the actual operational schedule in consideration of various constraints of the power system
InputData
bull Hourly forecasted load (34 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating units
bull Hourly forecasted load (24 hrs)bull Generation cost curvebull Generator availabilitybull Technical characteristics of the generating unitsbull Transmission constraintsbull Reserve constraintsbull Heat supply and fuel constraintsbull Hydro and pump storage constraints
Objective Function Total Generation Cost Minimization
Disclosure Time
bull Published at 1500 (D ndash 1)
bull Published at 1800 (D ndash 1)
22
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 23
Gen 1 (30W)Gen 2 (31W)Gen 3 (32W)Gen 4 (33W)Gen 5 (34W)Gen 6 (40W)Gen 7 (41W)Gen 8 (42W)Gen 9 (43W)
Gen 11 (80W)Gen 12 (81W)Gen 13 (82W)
Gen 14 (150W)Gen 15 (200W)
ltTotal Capgt
biding
Gen 10 (44W)
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
Gen 1 (30 )Gen 2 (31 )Gen 3 (32 )Gen 4 (33 )Gen 5 (34 )Gen 6 (40 )Gen 7 (41 )Gen 8 (42 )Gen 9 (43 )Gen 11 (80 )Gen 12 (81 )Gen 13 (82 )
Gen 15 (200 )
4h 15h
SMP (WonkWh)
hour
Forecasted
Load
helliphelliphelliphellipltBiding Capgt
Pricing
Nuclear
Coal
LNG
EtcNew
addition(GT)
CP based onMarginalplant
SMP Based onMarginalcost
ForecastedLoad
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
How do we set the market price (SMP) (2)
(Time)
(Unit WonkWh)
(Unit10MW)
Low
High
0100 0400 0900 1200 1500 1900 2100 2400Power demand(10MW) 3730 3320 4770 5500 5690 5420 5420 4740
Market price(wonkWh) 7041 3267 13189 14221 14221 1384 14221 11865
24
Power demand
Market price
Available supply capacity
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
All kinds of constraints should be considered in the real time bull All the data should be updated based on the initial operational schedule such as the load forecasts generator availability changes(Re-Offers) heat supply and fuel constraints and hydro and pump storage operations etc
bull SCADA data is very important at this stages for the system stability analysis
bull Schedule energy (generation and dispatch-able load) regulation and operating reserves every 5 minutes to -
minimize cost balance load meet regulation and reserve requirements satisfy transmission constraints satisfy generatorload constraints
25
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Optimal dispatch by inter-connection MOS with EMSbull 5-min optimal constrained dispatch using MOS(ABB)bull Ancillary serve requirements is met by the MOS-EMS coupling bull AGC base points are given by MOS and economic participation factors as well
bull Coupled operation between the AGC operation scheme of the existing EMS and the MOS economic dispatch algorithms
Requirements of MOS-EMS Coupling①Transform the CBP cost data into the MOS bidding data(10 prices and outputs)
rarr The bidding data transformation server does this②Accuracies of the Load ForecastState Estimation are possible by the reliable
SCADA RTU performance and the network modeling techniques ③The on-line monitoring of MOS operation is required 26
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 27
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 28
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Day-ahead Market
Price(SMP)
Schedule
Load Forecast
Cost Based
Bid Curve
Capacity Bid
Real Time System Operation
A S Bid
Generation
Capacity Prices
AS Prices
Energy
Scheduled
MeteredCapacity
A S
Settlements+
-
29
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
IPPs SMP is paid for trading volumesbull Giving incentives for independent power producers and inducing the invests for the base load generations
KEPCO Subsidiary Gencos RRC is applied instead of the full SMPbull Can not give all the settlement revenues due to KEPCOrsquo revenue shortfalls
bull Financial balancing among six power generation subsidiariesRRC Regulated revenue coefficients are different according to the generator typesClassification Variable Cost Fixed Cost
(WonkW-hour)
IPPS SMP746KEPCO Subsidiary
(by generator types)Variable cost+(SMP-VC)timesRRC
30
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System Recent Market Results
ⅢⅢTrends of Electricity TradingMarket Prices amp Retail Tariffs Summary of the Market Experiences
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
Trade Volumes(Unit TWh)
Trade Payments(Unit Billion Dollar)
rsquo07 rsquo08rsquo10 rsquo07 rsquo08rsquo10
1823
28Number of Members
(Unit No)
rsquo07 rsquo08rsquo10 As of December 2010
104
302422
374392
441
Number of participants has increased due to the growth of the renewables especially the solar power (104 members in lsquo07 rArr 422 members in lsquo10)
Despite global economic recession trade volume is increasing steadilybull Trade volume is 441TWh (Average increase rate for the last 4 years 5 ≒)
bull Trade payments is $28 Billion (Average increase rate for the last 4 years 14 )
6 Gencos KEPCOrsquos subsidiaries take 917 of the total trade volume in 2010
32
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program
MarketPurchasing Pricesbull Steadily rising since the establishment of the market
bull The market price jumped in 2008 due to high increase of fuel prices
bull Market prices were maintained at high levels however the average settlement prices kept at a marginally increased level thanks to the nuclear power
Retail pricesbull Stable even with the high fuel pricesbull This is because retail tariffs are regulated by the government and KEPCOrsquos financial status are not good in recent years due to the high purchasing price
bull Cross subsidy between the tariffs according to the usages make it difficult to progress the market evolutions
lt Retail tariffs by the usages gt
lt Market PricePurchasing Price gt
($MWh)
33
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 34
Electricity market reduces the electricity production cost and maximizes the resource availabilitybull Economic dispatch is possible based on generation costbull Increasing the efficiency of OampM works of the generating facility
bull Improving the rate of using low-cost facility(nuclear coal) (Capacity factor of nuclear and coal power plants are increased after operation of
CBP market as 339p and 27p respectively)
Accomplish the efficiency of investmentbull The substitution effect of new generation because the maximum capacity of generators were increased and maintenance schedules were shortened
- About 1000MW substitution effect of new base load generator were occurred after the market opening
bull OM cost were cut down owing to the competition
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
Power PlanningPower Market
Power System
Market IssuesⅣⅣ
Cross Subsidy between CustomersDemand Response
Vesting Contract
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Copyright 2011 by KPX co Ltd All rights reserved
2011 IRAN IGMC Power System Operation Training Program 36
Vesting Contract between Gencos and KEPCO has been suggested for the existing generators which were commissioned before the market opening(Because their construction cost has been already recovered and should be paid less compared the new generations)
Cross subsidized tariffs between the electricity users results in inefficient use of the electricity in the beneficiaries bull It seems that some users waste the electricity at heating because of low electricity prices compared with other form of energy
Demand response mechanism in the market will contribute to the optimal use of the electricity in generalsbull By using the market price(if possible the real-time price) as the economic signal smart grid initiatives will have a bright future in the industry
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-
Power PlanningPower Market
Power System
THANK YOU
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Slide 7
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- Slide 12
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Slide 18
- Slide 19
- Slide 20
- Slide 21
- Slide 22
- Slide 23
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Slide 28
- Slide 29
- Slide 30
- Slide 31
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- Slide 37
-