Status and perspective of transmission pricing scheme in Korean electricity market

Abstract

This paper thoroughly investigates how best it would be to send an adequately accurate locational price signal with the congestion costs incorporated into the transmission pricing rule when the electricity market, in which costs are recovered from all transmission users on an equivalent basis, is not unduly maintained. This paper attempts to make a supportive and self-explanatory proposal that it could fit the Korean cost-based pool (CBP) that satisfactorily sharpens the locational price signal.