New Energy Horizons "Charting the Course to a New Energy Future" Opportunities and Challenges

DSM and DR Strategies for Sudden Demand Increases in the South Korean Power System

Sang-Seung Lee

S. S. Lee is with the KESRI, Bldg. 130, Seoul National University, Seoul, 151-742, Korea (e-mail: [email protected]).

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 2 INTRODUCTION New Energy Horizons Opportunities and Challenges

This paper presents demand-side management (DSM) and demand response (DR) strategies for sudden demand in the South Korean Power System increases in response to the temperature rises.

Total Demand = Fixed Demand + Flexible Demand

In extreme weather such as high temperatures, the supply/demand balance of a power system becomes more and more difficult to operate.

In these situations, DSM and DR can play major roles in either controlling the needs of new intermittent resource capacity or adjusting the load consumption in real time to face production variations.

Simulations were performed for an inter-area power flow considering DSM/DR operation for generation/load variation using the Korea Electric Power Corporation (KEPCO) 2020 power system planning data for South Korea.

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 3 Power system strategies in the South Korea New Energy Horizons Opportunities and Challenges

Fig. 1. A configuration of facility and real-time dispatch operation in the South Korean power system [10].

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 4 The Power System Status in South Korea [10-12] New Energy Horizons Opportunities and Challenges

In 2035, Korean power demand will be reduced by more than 15%, and power generation will be supplied with distributed generation resources over 15% of the total generation.

According to common consensus between industry and social activity associations, the greenhouse gas will be reduced over 20% in comparison with current emission quantities.

Moreover, to relieve the electrical energy concentration of energy consumption, the bituminous coal for the generation will be subjected to heavy taxes, and taxes for LNG and kerosene will lighten. Finally, the relative energy prices will be adjusted.

According to the 5th basic plan for electricity supply and demand (BPE), peak demand is expected to increase annually by an average of 2.2% (based on target demand) between 2011 and 2040, showing a gradual increase as in advanced countries.

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 5 The Power System Status in South Korea [10-12] New Energy Horizons Opportunities and Challenges

Fig. 2. The 5th basic plan for the electricity supply and demand [10-12].

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 6 The Power System Status in South Korea [10-12] New Energy Horizons Opportunities and Challenges

Fig. 3. A basic plan for the electricity supply and demand Fig. 4. Power system and market operation process [10]. system [10].

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 7 The DR & DSM Prospects in Korean Power System New Energy Horizons Opportunities and Challenges The system establishment and vitalization of the power demand resource market has been realized by a competitive price-bidding mechanism in DR market in July, 2008.

Fig. 5. The KPX DR resource plan and virtual DR architecture

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 8 The DR & DSM Prospects in Korean Power System New Energy Horizons Opportunities and Challenges

Reduction DSM settlement Company cost

Installation of saving facilities Power market bidding in factory and large- scale building

Reduction plan of 1,900 MW until 2017

Fig. 6. Reduction plan by the DSM in Korea

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 9 The DR Program Classification New Energy Horizons Opportunities and Challenges

The DR program can be classified into three parts: the incentive-based DR, the price-based DR, and the reliability-based DR, according to the characteristics and the implementation methods.

In the incentive-based DR, a contract is established between the DR operator and the DR participants, and offers incentives or charges penalties.

The price-based DR program is based on the market price resulting from the relationship between the supply and demand. In the case of a price-based DR program, customers can take an effect as an incentive to reduce their demand in order to save on electricity tariffs.

A reliability-based DR is a program executed for demand reduction in the expected time of a power shortage, utilizing previously collected resources used for the case of expecting a similar power shortage to one that occurred the previous day.

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 10 The Power System Status in South Korea [10-12] New Energy Horizons Opportunities and Challenges Table I The Target for the DSM in South Korean Power System (2009-2024) [10-12]

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 11 Sudden Increase in Demand by Temperature [10] New Energy Horizons Opportunities and Challenges In South Korea, the power consumption has increased annually by 5% due to relatively low electricity rates and increasing air-conditioning and heating power demand in hot and cold weather.

On September 15 in 2011, when the temperature of Seoul rose to 31℃ and the late summer heat was unrelenting, the electricity demand rapidly increased to 66 million kW, exceeding the expected demand of 64 million kW. Naturally, the authorities had to prepare for an emergency.

The electricity demand rapidly rose from the morning and consistently increased throughout the afternoon. As a result, the reserve electricity decreased to 240,000 kW at 3 PM, and the KPX urgently started adjusting loads.

The adjustment continued from 3:11 to 7:56 in the evening over the course of 4 hours and 45 minutes, and about 7.53 million households experienced a power outage due to the adjustment.

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 12 The Power System Status in South Korea [10-12] New Energy Horizons Opportunities and Challenges

Table II The Power Flow Output Data considering DR Operation for the Total Generation/Load Variations in South Korea

Area line Normal Generation -3% Generation +3% Load -3% Load +3% Generation +4% and Load +4%

1-2 (Seoul - South Seoul) 816 711 788 711 689 796 1-3 (Seoul - Incheon) -588 -495 -677 -495 -514 -482 1-4 (Seoul - Suwon) 733 693 793 639 652 817 1-5 (Seoul - Jecheon) -7,130 -7,111 -6,605 -7,111 -7,054 -7,648 2-3 (South Seoul - Incheon) -540 -488 -566 -488 -497 -497 2-4 (South Seoul - Suwon) -4,784 -4,864 -3,997 -4,864 -4,460 -4,963 2-5 (South Seoul - Jecheon) -1,401 -1,478 -1,116 -1,478 -1,419 -1,574 3-4 (Incheon - Suwon) -1,592 -1,593 -1,444 -1,593 -1,554 -1,664 4-5 (Suwon - Jecheon) 904 651 971 651 590 775 4-6 (Suwon - Daegeon) -8,028 -8,157 -7,003 -8,157 -7,676 -8,425 5-6 (Jecheon - Daegeon) -130 -416 123 -416 -382 -251 5-9 (Jecheon - Daegu) -9,457 -9,564 -9,001 -9,564 -9,655 -10,360 6-7 (Daegeon - Jeonju) -414 -1,111 -272 -1,111 -1,053 -1,029 6-9 (Daegeon - Daegu) -384 -513 -299 -513 -487 -502 7-8 (Jeonju - Gwangju) -2,795 -2,941 -2,458 -2,941 -2,831 -2,640 7-9 (Jeonju - Daegu) -75 -172 25 -172 -162 -201 7-11 (Jeonju - Changwon) 467 -6 843 -6 -13 -90

8-11 (Gwangju - Changwon) -2,077 -2,412 -1,656 -2,412 -2,374 -1,796

9-10 (Daegu - Busan) -1009 -1,417 -589 -1,417 -1,362 -2,819 9-11 (Daegu - Changwon) -28 -447 325 -447 -433 -282 10-11 (Busan - Changwon) -1,154 -1,807 -460 -1,807 -1,727 -97

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA Countermeasures for Rotating Outage No. 13

by Temperature Rise in the Korean Power SystemNew Energy Horizons Opportunities and Challenges • The installed reserve margin in the facility plan will increase up to 22% of the total installation capacity based on 2027 to relive supply/demand uncertainty and to obtain secure reserve margins, considering the reduction of operating rate according to the safety reinforcement of nuclear power plants, enlargement of preventive maintenance, and reduction of demand uncertainty.

• A new facility will be constructed considering counterpart facilities for the uncertainty to allow supply failure. New construction of nuclear power plants will reserve one’s decision until the confirmation of the second energy basic plan. Renewable energy is targeted for 12% of the total generation in 2027. Composite generation resources will minimize the social or economic costs of coal and LNG.

• The prospects of power supply constitution in 2027 are in the order of coal ( 28.7%), nuclear (22.7%), renewable (20.2%), and LNG (20.1%) based on rated capacity.

• The peak contributions are in the order of coal (34.7%), nuclear (27.4%), and LNG ( 24.3%).

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA Countermeasures for Rotating Outage No. 14

by Temperature Rise in the Korean Power SystemNew Energy Horizons Opportunities and Challenges

• DSM should be reinforced by policy (with direction) and be considered to set the facility construction plan considering various social costs. Detailed methodology should be provid ed to activate distributed generation instead of the construction of large-scale generation facilities.

• The future substitutes should set up a distributed resource plan for relieving the pr oblems of power imbalance and the shortage of power in the metropolitan areas in South Korea.

• The various related interests should participate in the system in the course of est ablishing the BPE by correcting the related laws (and procedures).

• The BPE (basic plan for electricity) should propose a study on the previously required ca pacity of construction intention and new generation facilities, and should reinforce the fun ction of earlier information provisions.

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 15 CONCLUSION New Energy Horizons Opportunities and Challenges

This paper presented demand-side management (DSM)/demand response (DR) strategies for the sudden demand increase by the temperature rise in the South Korean power system in order to solve its present problems.

In extreme weather such as high temperatures, the supply/demand balance of a power system becomes more and more difficult to operate.

An integrated system was established and operated in Dec. 2009, and the DR potential in South Korea is expected to be 4% (3,000 MW) of the total load.

In these situations, DSM and DR can play major roles in either controlling the needs of new intermittent resource capacity, or adjusting the load consumption in real time to face production variations.

IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA No. 16

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IEEE PES General Meeting 2014, July 27 - 31, 2014 National Harbor, MD (Washington, DC Metro Area), Maryland, USA