Impact of Imbalance Pricing on Variable Renewable Energies with Different Prediction Accuracies: A Korean Case
Although the Korean government plans to increase its share of variable renewable energies (VREs), the Korean power market is not sufficiently mature to accommodate a large increase in VRE generation. Thus, the Korean system operator plans to introduce a two-settlement, and an imbalance settlement is...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-07-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/14/13/3976 |
| _version_ | 1797527974361169920 |
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| author | Heeseung Moon Dongsu Lee Jeongmin Han Yongtae Yoon Seungwan Kim |
| author_facet | Heeseung Moon Dongsu Lee Jeongmin Han Yongtae Yoon Seungwan Kim |
| author_sort | Heeseung Moon |
| collection | DOAJ |
| description | Although the Korean government plans to increase its share of variable renewable energies (VREs), the Korean power market is not sufficiently mature to accommodate a large increase in VRE generation. Thus, the Korean system operator plans to introduce a two-settlement, and an imbalance settlement is also under consideration, among several options. Therefore, this study analyzes how many incentives are given for prediction accuracy under several imbalance settlement schemes adopted from European and US power markets. Results show that the imbalance settlement consisting of threshold and penalty terms is useful for rule-makers, who can control revenue differences between the groups with different prediction accuracies by adjusting the two terms. The suggestion given in the paper will be useful for not only the Korean power market but also for the countries that plan to establish the imbalance settlement rules while increasing renewable energy. |
| first_indexed | 2024-03-10T09:51:29Z |
| format | Article |
| id | doaj.art-1331c3ef68b541998716da0f21490121 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T09:51:29Z |
| publishDate | 2021-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-1331c3ef68b541998716da0f214901212023-11-22T02:38:22ZengMDPI AGEnergies1996-10732021-07-011413397610.3390/en14133976Impact of Imbalance Pricing on Variable Renewable Energies with Different Prediction Accuracies: A Korean CaseHeeseung Moon0Dongsu Lee1Jeongmin Han2Yongtae Yoon3Seungwan Kim4Electric Power Network Economics Laboratory, Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Seoul 08826, KoreaSmart Energy Network Design Laboratory, Department of Electrical Engineering, Chungnam National University, 99 Daehak-ro, Daejeon 34134, KoreaSmart Energy Network Design Laboratory, Department of Electrical Engineering, Chungnam National University, 99 Daehak-ro, Daejeon 34134, KoreaElectric Power Network Economics Laboratory, Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Seoul 08826, KoreaSmart Energy Network Design Laboratory, Department of Electrical Engineering, Chungnam National University, 99 Daehak-ro, Daejeon 34134, KoreaAlthough the Korean government plans to increase its share of variable renewable energies (VREs), the Korean power market is not sufficiently mature to accommodate a large increase in VRE generation. Thus, the Korean system operator plans to introduce a two-settlement, and an imbalance settlement is also under consideration, among several options. Therefore, this study analyzes how many incentives are given for prediction accuracy under several imbalance settlement schemes adopted from European and US power markets. Results show that the imbalance settlement consisting of threshold and penalty terms is useful for rule-makers, who can control revenue differences between the groups with different prediction accuracies by adjusting the two terms. The suggestion given in the paper will be useful for not only the Korean power market but also for the countries that plan to establish the imbalance settlement rules while increasing renewable energy.https://www.mdpi.com/1996-1073/14/13/3976variable renewable energyforecast errorimbalance settlement |
| spellingShingle | Heeseung Moon Dongsu Lee Jeongmin Han Yongtae Yoon Seungwan Kim Impact of Imbalance Pricing on Variable Renewable Energies with Different Prediction Accuracies: A Korean Case Energies variable renewable energy forecast error imbalance settlement |
| title | Impact of Imbalance Pricing on Variable Renewable Energies with Different Prediction Accuracies: A Korean Case |
| title_full | Impact of Imbalance Pricing on Variable Renewable Energies with Different Prediction Accuracies: A Korean Case |
| title_fullStr | Impact of Imbalance Pricing on Variable Renewable Energies with Different Prediction Accuracies: A Korean Case |
| title_full_unstemmed | Impact of Imbalance Pricing on Variable Renewable Energies with Different Prediction Accuracies: A Korean Case |
| title_short | Impact of Imbalance Pricing on Variable Renewable Energies with Different Prediction Accuracies: A Korean Case |
| title_sort | impact of imbalance pricing on variable renewable energies with different prediction accuracies a korean case |
| topic | variable renewable energy forecast error imbalance settlement |
| url | https://www.mdpi.com/1996-1073/14/13/3976 |
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