IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v61y2013icp1046-1054.html
   My bibliography  Save this article

Assessing welfare impact of entry into power market

Author

Listed:
  • Cho, In-Koo
  • Kim, Hyunsook

Abstract

This paper calculates the welfare impact of a new entrant based on the location of entry in the Korean electricity market. We use two different models. One is the optimal fuel mix model to estimate the effect of a new entry in the long run. The other is the variable cost minimization model to assess the contribution of an existing installed private generator in the short run. A specific private generator, which has a cost advantage, saves a substantial amount of system-wide variable costs. We show that the right location for a new entrant can save power generation costs significantly, even if a new entrant does not have a cost advantage.

Suggested Citation

  • Cho, In-Koo & Kim, Hyunsook, 2013. "Assessing welfare impact of entry into power market," Energy Policy, Elsevier, vol. 61(C), pages 1046-1054.
    • Handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:1046-1054
    DOI: 10.1016/j.enpol.2013.05.124
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513004850
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2013.05.124?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. In-Koo Cho & Hyunsook Kim, 2007. "Market Power and Network Constraint in a Deregulated Electricity Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 1-34.
    2. Kim, Hyunsook & Kim, Sung-Soo, 2012. "The resource adequacy scheme in the Korean electricity market," Energy Policy, Elsevier, vol. 47(C), pages 133-144.
    3. Kim, Hyunsook & Kim, Sung-Soo, 2010. "The optimal fuel mix and redistribution of social surplus in the Korean power market," Energy Policy, Elsevier, vol. 38(12), pages 7929-7938, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Levin, Todd & Botterud, Audun, 2015. "Electricity market design for generator revenue sufficiency with increased variable generation," Energy Policy, Elsevier, vol. 87(C), pages 392-406.
    2. Kim, Hyunsook & Kim, Sung-Soo, 2010. "The optimal fuel mix and redistribution of social surplus in the Korean power market," Energy Policy, Elsevier, vol. 38(12), pages 7929-7938, December.
    3. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2019. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Energy Economics, Elsevier, vol. 80(C), pages 1059-1078.
    4. Koltsaklis, Nikolaos E. & Nazos, Konstantinos, 2017. "A stochastic MILP energy planning model incorporating power market dynamics," Applied Energy, Elsevier, vol. 205(C), pages 1364-1383.
    5. Kim, Eun-Hwan & Park, Yong-Gi & Roh, Jae Hyung, 2019. "Competitiveness of open-cycle gas turbine and its potential in the future Korean electricity market with high renewable energy mix," Energy Policy, Elsevier, vol. 129(C), pages 1056-1069.
    6. Kim, Hyunsook & Kim, Sung-Soo, 2012. "The resource adequacy scheme in the Korean electricity market," Energy Policy, Elsevier, vol. 47(C), pages 133-144.
    7. Fridolfsson, Sven-Olof & Tangerås, Thomas P., 2009. "Market power in the Nordic electricity wholesale market: A survey of the empirical evidence," Energy Policy, Elsevier, vol. 37(9), pages 3681-3692, September.
    8. Simona Bigerna, Carlo Andrea Bollino and Paolo Polinori, 2016. "Market Power and Transmission Congestion in the Italian Electricity Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    9. Atkins, Karla & Chen, Jiangzhuo & Anil Kumar, V.S. & Macauley, Matthew & Marathe, Achla, 2009. "Locational market power in network constrained markets," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 416-430, May.
    10. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2018. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Working Paper Series in Production and Energy 27, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    11. Hansol Shin & Tae Hyun Kim & Kyuhyeong Kwag & Wook Kim, 2021. "A Comparative Study of Pricing Mechanisms to Reduce Side-Payments in the Electricity Market: A Case Study for South Korea," Energies, MDPI, vol. 14(12), pages 1-19, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:1046-1054. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.