| Title |
A Study on Improvement of Capacity Payment using Fuzzy Theory in CBP Market |
| Authors |
김종혁(Kim, Jong-Hyuk) ; 김발호(Kim, Bal-Ho) |
| Keywords |
Capacity payment ; Fuzzy theory ; Triangular fuzzy number ; LOLP ; Peak demand |
| Abstract |
This paper presents a method for improvement of capacity payment in CBP(cost based pool) market. Capacity payments have been used as common mechanisms in various pools for compensating generators recognized to serve a for reliability purpose. Ideal pricing for capacity reserves by definition achieves a balance between economic efficiency and investment incentives. That is, prices must be kept close to costs, but not so low as to discourage investment. However, the price set is not easy. This paper concludes with market design recommendations that apply fuzzy theory for improvement of capacity payment. Following this model, market participants decided on their own based on their forecast to the market demand and the payment for it. |