Transcript 슬라이드 제목 없음

2007. 10. 15
Korea Power Exchange
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Korean Electric Industry Overview(1)
 No Inter-Connection
- Isolated electric power system
 Highly dependent on foreign
energy resources (Gas, Oil)
- Imported fuels 97%
 Rapid growth in electricity
demand (about 6.8%/year)
- Recent 5 years (’01~’05)
- about 9.7% (’91~’00)
 Peak Electricity Demand
- 62,285MW(Aug. 21, 2007)
 Total Generating Capacity
- 67,196MW(August, 2007)
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Korean Electric Industry Overview(2)
 Area of South Korea : 99,601 km2
 GDP : 897.4 Billion USD(’06, 12th Largest in the World)
 Population: 49 million (Seoul Metro. Area : 24mil. ’07)
 Electric Power Industry Overview
 17.62 million customers (December, ‘06)
 832 Generating Units (July, ‘07)
 765kV/345kV/154kV/(66kV), DC180kV
 Installed Capacity : 67,196 MW (August, ‘07)
 Electricity Consumption per Capita: 7,191 kWh(‘06)
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Electric Power Supply and Demand
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Generation Capacity in South Korea
By Generating Fuels
Oil
8.8%
Nuclear
Hydro
67,196MW
26.4%
KHNP
18,250 (27.2%)
(as of 2007.10, MW,%)
8.2%
CC,LNG
26.9%
Coal
29.7%
Private
762 (11.3%)
5 Genco’s
41,330 (61.5%)
By Genco’s
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Power System Network in South Korea
일산
영동
신덕은
신가평
양주 의정부
양양
신인천CC
중부 성동 미금
서인천
동해
영서
청평
인천 신부평
한종 신인천
신양재 동서울
영흥
서서울
분당곤지암
신시흥
신태백
신성남 신용인
평택
화성
신제천
신당진
신영주
신안성
아산
당진
LG부곡
청원
태안
신온양
선산
신서산
청송
신옥천
청양
보령
서천
서대구
신계룡
울주
군산
무주
신김제
신남원
산청
신경산
고령
신마산
영광
삼천포
하동
광양
광양cc
신화순
해남
Hydro/PP: 656 / 456
Total : 6,720 / 832
신강진
율촌
호남
여수
신포항
월성
울산
영남
신울산
신온산
북부산
삼랑진
의령
신광주
Nuclear : 1,772 / 20
Thermal : 2,527 / 220
CC(Gas) :1,755 / 136
울진
신김해
고리
신양산
남부산
765kV
345kV
해저케이블
154kV
신고성
( Unit : km / Station)
765kV :
755 / 5
345kV : 8,279 / 80
154kV : 20,242 / 561
제주
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Power System Facility Configuration
154/22.9 kV
Transmission Lines 765,345,154kV
HV Customers
22.9kV
Transformer
Generator
Eligible Customers
345kV,154kV
Captive
Customers
220V, 380V
Generators
Transmission
Network
Distribution
Network
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Electric industry liberalization in South Korea
 Industry structure before the liberalization start in 1999
– KEPCO monopolized 94% of installed generation capacity of 47,053MW, and 100%
of transmission & distribution (Government owned utility)
– A small number of IPP’s sold electricity to KEPCO, a single buyer.
– Tariff based on usage (Residential, Commercial, Industrial, agricultural)
 Objectives of the liberalization
– To enhance the efficiency of the electricity supply industry
– To effectively finance new generation capacity
– To increase consumer benefits and improve service quality
 Guiding Principles of Electricity Industry liberalization
–
–
–
–
Unbundling of electricity business into Generation, Transmission, Distribution, Supply
Mandatory Pool
Regulatory Body
Independent System & Market Operator
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Electric Industry Liberalization Plan in ‘99
PHASE II
PHASE I
PHASE III
Generation
Wholesale
Retail
Competition
Competition
Competition
Split the generation
sector into six Gencos
and introduce
competition
 KEPCO maintains
transmission and
distribution sector

2001


Introduce competition into the
distribution unbundled from
KEPCO
The transmission system
serves as a common carrier
2004


The distribution will
be privatized.
Regional supply
monopoly will be
eliminated.
2009
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What has been done thus far in South Korea
 Liberalization process to date
–
–
–
–
1999. 01 “The basic plan for restructuring of the electric power industry” unveiled
2000. 12 Necessary Legislations were enacted
2001. 04 KOREC and KPX established, 6 Genco’s were spun off
2004. 06 Distribution Spin-off suspended by Biz, Labor & Government
•
•
Impact of Electricity Market crisis in U.S. (California)
Concern about Price Volatility and Unstable Supply in the future Wholesale Market
– 2006. 09 Transformed Regional Distribution & Sales Branches of KEPCO into
9 Independent Business Divisions and Internal Competition among them
 Current State and Effects of the Liberalization
–
–
–
–
–
Cost-Based Pool Model is being continued
Genco’s and Distribution & Sales divisions are Not yet privatized
Investments are not effectively on time
Managerial efficiency in the Generation Sector has been improved
Power System Quality has been improved than before
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Industry role map in the electricity market
Government
Gencos
C E S3)
Self-Gen
IPPs
(Community
Energy Supplier)
MOCIE1)
CHP
Electricity Industry
Team
. ESI Policy
. Long-Term Adequacy
(Generation and
Transmission)
. Control of KEPCO’s
Manpower and Budget
2)
KOREC
(Regulator)
. Issue Licenses
. Approve the Tariffs
. Supervise Market &
System Operations
. Approve Market Rule
Wholesale Market(KPX)
- Market Operation
- System Operation
- Long-Term Adequacy
KEPCO
Transmission Business
Distribution Business
Retail Business
Connection
OR
Intra –
Network
Power & Heat
. Approve Transmission
& Distribution Code
. Privatize state-own
Gencos and et cetra
End Users or Customers
1)
2)
MOCIE: Minister for Commerce & Industry
KOREC(Korea Electricity Commission) was established
on April 27, 2001, but have not been separated from
government.
3) CES has right to supply electricity and heat to the specific area
and it should own generation plant and can sell or buy
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unserved or excessive electric power to/from KPX or KEPCO
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Market Structure Change in 2001
 Competition was introduced into generation sector which
takes 65%~70% of electricity cost.
KOMIPO
WP
KOSEP
Generation
(65-70%)
KOSPO
KPX
KHNP
Transmission (10%)
Distribution (10%)
Retail
(10~15%)
Consumer
KEWP
Transmission
Distribution
Retail
Consumer
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Current Electricity Market Structure
◈ Competition in generation (2001~ )
 Genco’s compete among themselves
in the Generation Pool.
 Major Genco’s are subsidiary
companies of KEPCO
 KEPCO manages transmission and
distribution sectors.
 Eligible customers can buy electricity
directly from Gencos.
Gencos
Gencos
(KEPCO)
(Private)
Bid
Bid
IPPs
Bid
Generation Pool
PPA
Customers
KEPCO(T&D)
Eligible
Customers
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Key Features of the Market(1)
 All generators and retailers should trade electricity through the market.
 Generators bid into the pool with their available capacity of each generator
and each trading daily
 KEPCO is the only purchaser in the market
 Eligible Customers are allowed to buy electricity directly from the
pool(2003.1)
 Some PPA holders do not participate in the market
 Dispatch schedule is made by the predetermined costs of each generator.
 Generation Cost Evaluation Committee(GCEC) determines the variable
costs of each generator.
 GCEC evaluates the construction cost and fixed costs of each generator.
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Key Features of the Market(2)
 Generators are paid by system marginal price(SMP) plus capacity
payment
 SMP reflects actual production costs(start-up, no-load, incremental cost)
of the latest generator brought into operation
 CP is paid to all generators offering, whether or not dispatched
 CP ensures capital costs recovery and underpins further investments
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Electricity Market Business Process
Generators
KPX
Demand Forecast
Prod. Cost
Evaluation
Fixed Cost
Fixed : Yearly
Var. : Monthly
Submit
Variable Cost
Scheduling
Offer
Available Cap.
• SMP
• Commitment
Notify
Gen. Ready
Day ahead
Trading day
Historical data
Weather data
Real-time Dispatch
Dispatch Instruction
Gen. Operation
After 26 days
Settlement
Invoice Notification
Payment
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Electricity Market Timeline
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Market Volume by Fuel Type
As of 2006
Others 871
0.4%
Hydro 4,843
1.3%
LNG 57,251
(16.1%)
Nuclear
42,114
(40%)
Total
Oil 15,305
(4.3%)
354.9
354.9 TWh
TWh
Others 77
0.3%
Nuclear
5,829
(28.6%)
Hydro 536
2.7
%
LNG 6,340
(31.1%)
Total
Total
20,357
18,924Bwon
Oil 1,925
( 9.5%)
Coal 134,480
(37.9%)
Traded Energy (GWh)
Coal 5,650
(27.8%)
Traded Volume (Million US$)
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Market Participants (Trading Members)
Total : 90 Members
Generation Type
Registered (83)
KEPCO (TAO + PSB)
Generators(54)
- KEPCO Subsidiary(6)
- Renewables (43)
- IPP(5)
Distributed Gen
3,723 MW
(5.5%)
Renewables
304 MW
(0.4%)
Distributed Gen. (27)
Community Service[1]
Total
67,196 MW
Associates(7)
PPA Generators(3)
Under Cosntruction(1)
Community Service[3]
As
of ’07.09.14
Generators
63,169 MW
(94.1%)
As
of ’07.09.14
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Electricity Market Price in South Korea
US Cents/kWh
9.30
10.00
9.00
8.00
7.00
5.35
6.00
5.00
6.31
6.12
4.72
3.70 3.63
3.94 3.93
4.214.06
2001
2002
2003
5.04
4.00
3.00
2.00
1.00
0.00
Average Market Price
2004
2005
2006
Average Settlement Price
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Consumer(Retail) Price in South Korea
US Cents/kWh
13.00
12.00
10.50
10.18
10.38
10.15
10.42
10.75
11.00
10.00
9.00
8.00
7.00
5.79
5.55
5.67
5.66
5.66
5.82
6.00
5.00
4.00
3.00
2.00
1.00
0.00
2001
2002
2003
2004
Residential
Industrial
2005
2006
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Issues in the Korean electricity Market
 Electric industry liberalization program has been stopped for long time
o Phase 1 model(Cost Based Pool) has been maintained for more than 6 years
o CBP was designed for simplicity and quick implementation during the
transitory period (need some amendments to be a sustainable market)
 CBP has revealed the limitation as a temporary system lacking of
detailed provisions in the market design
o
o
o
o
Low efficiency due to the dual market structure (Base & Non-base load markets)
Lack of locational signal in consideration of transmission losses
Possibility of over-investment with inappropriate capacity payment
Lack of incentives to save fuel costs
 Extensive improvement works in market rules and trading arrangements
were carried out in 2006 to make a sustainable electricity market
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Recent Changes in Market Settlement
 Energy Payment
o
o
Marginal Loss Factors are applied to price setting and settlement
Adjusted settlement price for the Base-load (Nuclear, Coal) Energy
• Settlement prices of baseload power plants are negotiated with parties,
based on the advice of an independent committee to protect Korean
electricity consumers
 Ancillary Services Payment
o Regulation reserve services are compensated for their contribution
 Capacity Payment
o To further refine the signal, the payment amount is weighted to reflect the
value of capacity across the year and the locations
o
Locational(Seoul Metropolitan/ Non-Metropolitan/ Jeju-island) and
seasonal (Peak/Medium/Off-peak) reserve requirements are applied
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Issues to be challenged in the future
 Introducing bilateral contracts in Energy Market
• Bilateral purchasing agreements between the generating
companies and KEPCO(Vesting Contract, Off-Take Contract)
 Zonal Pricing in Energy Market
 Ex-post pricing for real-time market
• Multi-settlement with Day-ahead market and real-time only
 Ancillary Service settlement
• By Whom and how much should AS payment be paid?
 Real time cost offer or/and limited price bidding
 Forward Capacity Market
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Thank You!
Byung Kyo Choi
Tel: 82-2-3456-6504, [email protected]
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