Power Planning

Power Market

Sang-Jin Chung
+82-10-5234-6134
sjchung@kpx.or.kr

Power System

Korean Electricity Market

Operation

KEY STATISTICS (2010)

People served (million)

Sin-Dukheun Sin-Gapyung
Uijeongbu
Yangju

SungdongMigum
Chungbu
Seo-Incheon
Youngdeungpo Sin-Yangje
Dong-Seoul
Donghae
Youngseo
Incheon T/P, C/C Sin-Bupyung
Sin-Sungnam
Sin-Incheon
Gonjiam
Sin-Taebaek
Seo-seoul
Youngheung T/PSin-Sihung
Hwasung Sin-Youngin
Sin-Ansan
Pyungtaek T/P, C/C
Uljin N/P
Sin-suwon
Sin-Youngju
Dangjin T/P
Sin-Dangjin
Sin-AnsungSin-Jecheon
Ansan
Sin-Jincheon
Taean T/P
Cheongsong P/P
Chungwon
Sin-seosan
Boryeong T/P, C/C

Sin-onyang
Sinkaedong
Chungyang

Generating capacity (MW)

76,078

Peak loads (MW)

71,308

Total transmission lines (C-Km)

Yangyang P/P
Seo-Incheon C/C

50

Electricity traded annually (GWh)

Generators (above 20MW)

30,676
406,000

372 ea

CHARACTERISTICS

Sin-Youngil
Sin-Okcheon

Isolated power grid within Korean peninsular.

High growth rates of power consumption.
- Annual increase rates;
91-95: 10.9%, 96-00: 7.4%, 01-05: 6.6%,
06-10: 5.6%
Highly dependent on foreign energy resources;
- 96.4% of primary energy imported (232 million
toe, 08)
* Primary energy resources;
- Oil: 43.1%, Coal: 27.6%, LNG: 15.3%, Nuclear:
14.0%
2011 IRAN IGMC Power System
Operation Training Program

Sunsan
Buk-Daegu

Gunsan

Muju P/P

Sin-Gimje Sancheong P/P

Seo-Daegu
Sin-Kyeongsan

Goryeong

Sin-Namwon Euiryong
Youngwang N/P

In-Masan
Sin-Gwangju
Sin-Hwasun
Gwangyang

Haenam C/S
Yeosu N/P
Jeju T/P
Sanji
Jocheon
Hanrim CC
Dong-Jeju
Sungsan
AndukSin-Jeju
Hanla
NamjejuSeogwipo

Copyright 2011 by KPX co., Ltd. All rights reserved.

Ulsan TP, C/C

Sin-Onsan

Bukbusan

Sin-Gimhae
Sin-Gosung
Pusan C/C
Samcheonpo T/P
Hadong T/P

Sin-Gangjin

Wolseong N/P

DaeguUlju
Sin-Ulsan

Kori N/P
Sin-Yangsan

Nam-Pusan

(Unit : 10 MW)

Hwachun
Chuncheon 100

Sin-Incheon
Seo-Incheon
180

180

POSCO
180

Taean

115 50 45

Pyungtaek

300

Boryeong

50

90

Nuclear
590

Uljin

9
Chungju
Daechung

Seocheon

Andong

Cheongsong

60

60

70

Hadong

53 Yulchon
50

Imha

Ulsan

Sanchung

Yeosu

10

Sumjinkang

Honam

Wolseong

Hapchun

60
Muju

Chuam

17,716(23.3%)
Oil

41

(Unit : MW)

Donghae

Small Hydro (Pocheon etc)

Chungpyung

Yongdam

Youngkwang 590

Youngdong

33

40

40

Soyangkang

LGBugok

180
40

20

Capacity by Fuels

Kangreung

Bundang
Anyang

400 48 140

400

Chungpyung

45

Youngheung
247
Dangjin

90

Yangyang

12

Pucheon Seoul
Incheon 39

Euiam

Paldnag

Ilsan

11

400
Kwangyang
99

300

180 120

Samrangjin
Kori

Busan
Samcheonpo

40

314

278
Youngnam

LNG

5,805(7.6%)
Hydro

20,471
(26.9%)

5,524(7.3%)
Renewable
1,762(2.3%)

180

Coal
24,800
(32.6%)

53

* As of Dec 31, 2010

74

Jeju

Copyright 2011 by KPX co., Ltd. All rights reserved.

2011 IRAN IGMC Power System Operation Training Program

Characteristics

Yangyang P/P

Yangju

Seo-Incheon C/C

765kV

Main transmission system

Migum
Sungdong
Chungbu
Youngdeungpo
Sin-Yangje Dong-Seoul
Youngseo
Sin-Bupyung
Sin-Sungnam

Seo-Incheon
Incheon T/P, C/C

Mass transmission
system

345kV

Sin-Gapyung
Uijeongbu

Sin-Dukheun

Donghae

Sin-Incheon

Gonjiam
Seo-seoul
Sin-Sihung
Youngheung T/P
Hwasung
Sin-Youngin
Sin-Ansan
Pyungtaek T/P, C/C
Dangjin T/P

Sin-suwon
Sin-Ansung
Ansan

Uljin N/P

Sin-Youngju

Sin-Dangjin

Taean T/P

Sin-Taebaek

Sin-Jecheon

Sin-Jincheon
Cheongsong P/P
Chungwon

154kV
Distribution system

Sin-onyang

Sin-seosan

Sin-Youngil
Sinkaedong

Boryeong T/P, C/C

Sin-Okcheon

Chungyang

Sunsan
Buk-Daegu
Gunsan

- Connected to major
areas of consumption

Seo-Daegu

Muju P/P
Sancheong P/P

Sin-Gimje

Wolseong N/P
Sin-Kyeongsan

Goryeong

Daegu
Sin-Namwon

Ulju

Euiryong

Sin-Onsan

Youngwang N/P
In-Masan

Direct Current Line

Sin-Gosung

- Connect the main land

to Jeju Island

Sin-Hwasun
Gwangyang
Sin-Gangjin
Haenam C/S
Yeosu N/P

Second HVDC Line between main land

and Jeju island is being built by 2012
( 300MW 700MW)

Pusan C/C
Hadong T/P Samcheonpo T/P
Pusan C/C
Hadong T/P Samcheonpo T/P
Gwangyang Steel
Gwangyang Steel

Jeju T/P
Sanji

Hanrim CC

Copyright 2011 by KPX co., Ltd. All rights reserved.

Bukbusan

Sin-Gimhae

Sin-Gwangju

Anduk
Namjeju

Jocheon

Dong-Jeju
Sungsan
Sin-Jeju
Seogwipo

Hanla

2011 IRAN IGMC Power System Operation Training Program

Ulsan TP, C/C

Sin-Ulsan

Kori N/P
Sin-Yangsan

Nam-Pusan

(Unit: C-km/ Numbers of S/S)

765kV :
755 / 6
345kV : 8,552 / 88
154kV : 20,700 / 628
4

 A peak demand of 71GW occurred on Dec 15, 2010

6.8% increase compared to the last years peak.
Higher than expected due to the extended cold waves.

The capacity margin was just around 6.2% (the lowest since 2001)
Has gradually decreased due to the delayed construction in facilities.
May improve from 2012 with the generator additions.
(Unit:MW)

70,000
65,000

Reserve margin
12.2%

60,000
55,000
50,000

Peak demand

* As of Dec , 2010

51,260
(8.2%)

11.3%

54,630
(6.6%)

58,990
(8.0%)

(Growth rate)

66,800

62,790

(6.4%)

62,290
(5.6%)

71,308
(6.8%)

(0.8%)

10.5%
9.1%
7.9%

7.2%

6.2%

45,000
04
Copyright 2011 by KPX co., Ltd. All rights reserved.

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07

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2011 IRAN IGMC Power System Operation Training Program

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 Mandatory Pool
All generators( 1 MW) and retailers should trade(buy and sell)
electric power through the market ; All market participants should
register as the KPX member.
The market players are GENCOs(sellers) and KEPCO(the single buyer).

Generator Bidding Pool

Only the supply(generation) side bid into the pool with their generator
availabilities for each trading day.
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.
The market clearing is processed hourly base, prices and volumes are
fixed day-ahead for 24 hours of the following day.

Copyright 2011 by KPX co., Ltd. All rights reserved.

2011 IRAN IGMC Power System Operation Training Program

 Cost Based Pool (CBP)

The cost (not the price) of each generator is bid into the pool.
The generation cost is determined monthly by the Generation Cost Evaluation
Committee(GCEC) based on the fuel prices in the previous month.
As mentioned before the generators bid only their availability.

The System Marginal Price(SMP) is determined in the process of Price Setting

Scheduling.
SMP reflects actual production costs of generators(start-up, no-load, incremental cost).

The Capacity Payment(CP) is paid by for the availability declared(MW).

CP is paid to all generators(the Centrally Dispatching Units( 20 MW)) who submit
offer data, whether or not dispatched.
CP is determined at every year, and it is adjusted considering the level of reserve
margin which can be the signal of investments.
CON/COFF Payment are payed for the differences between the scheduled and the
actual generations.

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 ; GF/AGC
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 Payments

Compensation for ancillary services is paid according to their
contributions, i.e. GF/AGC service performances are assessd by the
performance index.
Co-optimization between energy and ancillary is possible.
The economic dispatch principle (merit order) is fully met, i.e. the roles
of each types of the generator is fulfilled according to their functions.
i.e. the Base load(Coal) : Max. energy output.
Peaker(LNG): Effective load following by providing AGC
servicethe
.
Copyright 2011 by KPX co., Ltd. All rights reserved.

2011 IRAN IGMC Power System Operation Training Program

 Number of participants has increased due to the growth of the renewables,

especially, the solar power (104 members in 07 422 members in 10)
Despite global economic recession, trade volume is increasing steadily.
Trade volume is 441TWh (Average increase rate for the last 4 years 5 %)
Trade payments is $28 Billion (Average increase rate for the last 4 years: 14 %)
* 6 Gencos, KEPCOs subsidiaries, take 91.7% of the total trade volume in 2010.
Number of Members
(Unit : No.)

302

422

Trade Volumes
(Unit : TWh)

392

441

Trade Payments
(Unit : Billion Dollar)

374

23

28

18

104

07 08 10

07 08 10

07 08

10

* As of December, 2010
Copyright 2011 by KPX co., Ltd. All rights reserved.

2011 IRAN IGMC Power System Operation Training Program

 Market/Purchasing Prices

($/MWh)

< Market Price/Purchasing Price >

Steadily rising since the establishment of the

market.
The market price jumped in 2008 due to high
increase of fuel prices.
Market prices were maintained at high levels,
however, the average settlement prices kept at
a marginally increased level thanks to the
nuclear power.
< Retail tariffs by the usages >

Retail prices
Stable even with the high fuel prices.
This is because retail tariffs are regulated by the
government, and KEPCOs financial status are not
good in recent years due to the high purchasing price
Cross subsidy between the tariffs according to the
usages make it difficult to progress the market
evolutions.

Copyright 2011 by KPX co., Ltd. All rights reserved.

2011 IRAN IGMC Power System Operation Training Program

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