An Analysis on the Adequate Level of Capacity Price from a Long-Term Generation Expansion Planning Perspective: the Case of Korea

  • Kim, Hyoungtae (Dept. of Electrical and Computer Engineering, Pusan National University) ;
  • Lee, Sungwoo (Dept. of Electrical and Computer Engineering, Pusan National University) ;
  • Kim, Tae Hyun (Dept. of Electrical and Computer Engineering, Pusan National University) ;
  • Shin, Hansol (Dept. of Electrical and Computer Engineering, Pusan National University) ;
  • Kim, Wook (Dept. of Electrical and Computer Engineering, Pusan National University)
  • Received : 2018.04.30
  • Accepted : 2018.09.17
  • Published : 2018.11.01


Capacity payment mechanism has been adopted as the incentive scheme to achieve resource adequacy in Korean electricity market, however, the level of capacity price has been controversial due to its insufficient extent to incur financial loss for certain generators. Therefore, a new method is proposed to estimate the proper level of capacity price incorporating profitability of market participants and resource adequacy in this paper. The proposed method is successfully applied to test system based on Korean power system.


Supported by : Korea Institute of Energy Technology Evaluation and Planning (KETEP)


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