IEEE Power & Energy Magazine - November/December 2014 - 75

demand, bids for energy, the price-setting schedule (PSE),
system marginal price (SMP) calculations, operating schedules, real-time power system operation security, metering, and
settlements. The SMP is set by hourly marginal costs based
on the PSE, where the determined SMP is announced before
3 p.m. of the trading day-ahead. Based on the announced SMP,
the pumped-storage power generator submits its pumping plan
to the Korean Power Exchange (KPX) by 4 p.m. of the trading day-ahead. The real-time operation schedule on the trading
day reflects pumping power and system constraints, including
transmission constraints and fuel constraints. On the trading
day, power is generated according to the real-time power system conditions. The generation production is then measured in
real time and is settled by the hourly market price. Figure 26
shows the market operation procedure in South Korea.

figure 25. The Asian "supergrid" scenario.
table 5. Investment cost outlook for new generation
capacity, in billions of KRW; the table uses a
constant price as of the beginning of 2012, excludes
investments in renewables and RCES or CES, and
excludes uncertainty mitigation capacity.

Investment Cost Outlook
Tables 5 and 6 describe the investment cost outlook for new
generation capacity planned by the Sixth BPE and the overall
investment cost outlook, respectively. For the new capacity in
Table 5, a total of KRW16 trillion is expected to be invested to
achieve the generation capacity expansion plan of 11,980 MW
(14 total units: ten coal-fired units and four LNG-fired units).
Table 6 summarizes the investment cost of both new projects
and the cost of fixed capacity already under construction. The
total cost is 70 trillion KRW for a generation capacity expansion plan of 50,923 MW of capacity (from a total of 57 units:
11 nuclear units, 25 coal-fired units, and 21 LNG-fired units),

Classification

2013-2017

2018-2022

Total

Nuclear

0

0

0

Coal

8,232.1

4,234.5

12,466.6

LNG

3,171.5

0

3,171.5

Total

11,403.6

4,234.5

15,638.1

Power Generation
Company

KPX

Demand Forecast

Generation
Cost
Calculation

Construction Cost
for a Standard Generator

Capacity Cost: Annual
Variable Cost: Monthly

Data Submission

Fuel Cost

One Day Ahead
Scheduling
-Historical Data
-Weather Data
(Temperature, etc.)

-Determining the Market Price

Offer

-Determining the Generators
to Be Dispatched

Announcing
Schedules

Available Capacity
Preparation
for Generator Operation

Trading Day

Real-Time Dispatch

Dispatch Order

Generation Output Control

26 Days After Trading

Settlement

Invoice

Payment

figure 26. Market operation procedure in South Korea (source: KPX).
november/december 2014

ieee power & energy magazine

75



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