MART

KPX MART
Smart KPX, KPX

512, Yeongdong-Daero, Gangnam-Gu, Seoul, 135-791, Korea TEL 02.3456.6500 FAX 02.3456.6569 www.kpx.or.kr
 Smart KPX

MISSION
To operate a fair and efficient electric power market
To operate a stable electric power system

VISION
To lead a future energy society by providing the best service

2020 STRATEGY
To establish 3 strategic directions, 6 strategic objectives,
and 12 strategic assignments

2 3
KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

 Smart KPX

Organization chart
[2 divisions, 5 departments, 2 offices, 1 dispatch center, and 2 branches/ 301 persons in total]

KPX stays awake around the clock

to ensure the future of electric power industry.
In order to improve the efficiency of the electric power industry which has been the basis of South Korea's Board of Directors
industries, the power generation sector of the Korea Electric Power Corporation (KEPCO) was separated
into 6 companies in April, 2001 in accordance with the government policy. This is when Korea decided to KPX
introduce a competitive structure to the electric power industry that had been monopolized by the state for
Executive director
more than 40 years. Accordingly, the electric power market was newly established and KPX was founded
as a non-profit public organization on April 2, 2001. This was done based on the Electricity Business Law
with the purpose of operating a fair and transparent electric power market and system as well as Non-executive director
establishing a long-term basic plan for electricity supply and demand.

Power market operation

Non-executive auditor

4 Power system operation 5

KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

Current status of members
Regular members
Establishment of the basic plan for long-term electricity supply and demand Associate members Total
Retail supplier Generation company*
1 409 2 422
 Smart Business

Power market operation process

Generation companies KPX

(supply bidding) (demand forecast)

Establishment of price setting schedule

Operation of
power market
Market price setting

Power transmission, fuel constraint Establishment of operation schedule

Operation
of power
system
Real-time operation

Metering

preliminary settlement of power trading

Operation of
Final settlement of power trading
power market
6 7
KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

Invoicing
Payment flow

Payment
 Smart Business

Market price Market operation system

Bidding system

Method of determining the market price

Scheduler system

Metering system

Settlement system
Market price setting procedure

Bidding Price setting schedule Price calculation Selection Market price

> (unconstrained > for each > of units qualified > setting
Demand forecast schedule) generator for price setting (SMP)

Deciding electricity price and demand

148.04won
60,000 ▼

50,000 Wholesale
Market price
LNG Combined Cycle Demand
40,000
43.07won
▼ Domestic coal KPX will make an advanced power market by systematically analyzing and improving the performances
30,000 and problems in current power market operation.
Bituminous coal

20,000
8 9
KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

10,000
Nuclear

0
1 3 6 9 12 15 18 21 24
 Smart Business

The power system mainly consists of generators, transmission lines and substations, and
distribution lines.
●
KPX comprehensively controls and manages all the above systems and electric power supply on
Yangyang P/P
●
a stable basis. ● ● Sin-yangyang

● ●
●
●Sin-Gapyung ●
Sin-Dekneun Ynagju Uljeongbu
Sin/Seo-Incheon C/C ● ● ● ●
● chungbu ● ●Migum
Sin-Paju Sungdong● ● Donghae
Seo-Incheon ● ● ●
Youngdeungpo● Sin-Yangje
● ●
Incheon T/P, C/C 신부평 ● ● Dong-Seoul
● Youngseo ●
Sin-Incheon ● ●
Sin-Sihung Sin-Sungnam● Gonjiam ●
●
Youngheung T/P ● Sin-Taebaek
Seo-seoul ● ●
● ● ●
Sin-Youngln ●
Sin-Ansan ● ● ●
Pyungtaek T/P, C/C ● Hwasung
●
Sin-Ansung
●
Sin-Suwon ● ●
Dangjin T/P ● ● ● ●● Uljin N/P
Sin-Dangjin● Seo-Ansung Sin-Jecheon
● Ansan ●
Transmission Taean T/P ●
●
● Sin-Jincheon ● Sin-youngju
●
●
Sin-Tangjung
system network ●
●
● chungwon
●
Cheongsong P/P
● Sin-onyang
●
●
Boryeong T/P, C/C ●
● Sin-kaedong ● Sin-Youngl ●
Chungyang ● ●
● ●
Sunsan
● ● ●
Sin-Okcheon
●
● ●
● Gunsan Sin-Pohang
● ● ●
● Seo-Daegu Buk-Daegu
Muju P/P Wolseong N/P
● ● ● ● Sin-Kyeongsan
● Sin-Glmje ● ●
Sancheong P/P ● Daegu
Goryeong ● Ulju ● Ulsan T/P, C/C
● Sin-Namwon ● Eulryong Sin-Ulsan ●
● ● ● Sin-Onsan
● ●
●
●Sin-masan Korl N/P
Bukbusan●
● ●Sin-Yangsan
Youngwang N/P Sin-Gimhae
●Sin-Gwangju ● ●
Nam-Pusan
● Pusan C/C
광양 Samcheonpo T/P
Sin-Hwasun ● ● Sin-Gosung
● Hadong T/P
Gwangyang Steel

Sin-Gangjin ● Yeosu T/P

Gwangyang C/C
Haenam C/S ●

10 11
Jeju T/P ●
KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

Jeju C/S
Power quality compliance performance %)
Namjeju T/P
Hanrim CC
● Division compliance criteria 2008 2009 2010
Voltage Reference voltage±4kV 99.98 99.99 99.99
Frequency 60±0.1Hz 99.92 99.94 99.96
 Smart Business

Real-time monitoring
and control of power facilities Transmission Line

Nuclear 20units 30,423c-km

No. of Substation 722

Thermal, LNG CC 429units KPX Central Dispatch Center

Load curve on Peak day

Jeju Branch Cheonan Branch

No. of Transformers 2,267
Hydro 56 units
& Pumped Storage

Backup for the Central

69units of generators, Dispatch Center,

12 substations operation of 154KV Renewable

transmission line for non-
metropolitan area 2,573units
(Hydro excluded)

Power demand pattern

KPX operates a perfect and stable power system based on its accumulated know-how and
Seasonally Daily
Weekday expertise.
Summer
Saturday
12 13
winter
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2011 SMART KPX BROCHURE

Sunday
spring/autumn

2 4 6 8 10 12 14 16 18 20 22 24 2 4 6 8 10 12 14 16 18 20 22 24
 Smart Business

Establishing a basic plan for the electricity supply and demand system

KPX Working level Subcommittee

Demand forecast
Demand forecast

Generation expansion plan

Demand side management
electricity
supply and
demand
committee
Supply reliability assessment Generating Capacity

Transmission System
Basic plan for electricity
supply and demand (draft)

14 15
Ministry of Electricity Finalize
KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

Public
Knowledge policy review and
hearing
Economy board announce
 Smart Business

Demand forecast The 5th basic plan for electricity supply and
demand

Demand forecast and procedure

The 5th basic plan for electricity supply and demand

MW 120,000 25 (%)

110,000 20

100,000
15
90,000
10
80,000

5
70,000

60,000
0
Current status and prospect of electricity supply and Year 2010 2012 2015 2018 2020 2022 2024
demand Peak demand 69,886 74,414 80,009 85,810 89,225 92,111 95,038
Installed capacity 73,247 79,839 92,465 101,311 106,897 110,070 112,294
Reserve rate(%) 4.8 7.3 15.6 18.1 19.8 19.5 18.2

KPX biennially establishes a long-term electricity supply and demand plan that considers future
uncertainties and economic growth rate in order to stabilize electric power supply, which is a
driving force behind the nation's economy.

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2011 SMART KPX BROCHURE

 Smart Future

A road map to become an energy trading hub

KPX will become an energy trading hub by constructing a smart grid, pushing ahead to be
designated as an institution to trade carbon emission credits, vitalizing demand resource
market and developing the next generation power system and market operation system.

Advancement
into a hub
Accumulation institution of
of energy energy trading
Construction trading
of energy capability
trading
foundation
Long-term
Mid-term 2015~2030
Short-term 2012~2014
2011

Completion to improve
Construction of power market system
intelligent electricity Successful operation Expansion of smart grid
Advancement of system
of Jeju Smart Grid through smart grid
network operating technology
Test Bed stronghold districts
(Smart Grid) (renewable /distributed
resources)

Designated as an Designated as an
institution to trade Trial operation Regular operation of
institution to operate
of GHG emission GHG emission
carbon emission carbon emission credit
credit trading credit trading
credits trading

Demand side Construction of

management according Expansion of demand Vitalization of demand integrated foundation
resource market resource market for demand resource
to demand response
(load reduction target: (annually 700,000- market and
(demand resource 560,000KW) 1,000,000kW) power market
market) (5% of peak demand)

18 19
Constructing Next generation EMS
Localization of K-EMS
KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

establishment Development
an advanced Securing of
based on K-EMS of smart EMS and MOS
power IT foundation world-level IT reliability
Localization of MOS
 Smart Future

Construction of Smart Grid Pushing ahead with a plan to be designated as Korea carbon emission exchange
Smart grid integrating ICT technology (smart) into electricity network (Grid) is the next generation The carbon emissions trading scheme is a market-based mechanism to minimize the cost of
of electricity networking to optimize energy efficiency by enabling suppliers and consumers to reducing greenhouse gas emissions. South Korea is expected to belong in a group of countries
exchange real-time information on electricity. that will be imposed with the mandatory emission reduction targets starting in 2012. Accordingly,
KPX takes responsibility for the intelligent electricity service (electricity market and system KPX has prepared for emissions trading by implementing the simulation trading of carbon
operation) which is a core infrastructure of smart grid. It will play a leading role in constructing emissions credits
the smart grid by creating an open power market optimized for the smart grid environment and
by developing operation technology for the electricity system.
Overview of carbon emissions trading scheme

Background and necessity Overview of smart grid Shortage

Response to climate change
Surplus

emissions
allocation

allocation
emissions
Improvement of energy efficiency emission Emissions
Emissions trading
exchange
Creation of new growth engine KPX

Role of KPX
Role of KPX Perfect preparation to begin emissions trading
Construction of integrated open energy market Construction of the integrated operation center for the
system Jeju Smart Grid Test Bed

20 Construction of a cooperative system with institutions at home and abroad 21

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2011 SMART KPX BROCHURE

 Smart Future

Vitalization of electricity demand response market Construction of the foundation for advanced electric power IT
The demand response market is an advanced demand management system where consumers can The IT environment in the electricity industry has changed into standardization, system connection,
voluntarily bid for load reduction volume and compensation amount. Because of this, consumers high-speed two-way communication, and security strengthening, and etc., for the purpose of
can save electricity during peak hours and receive compensation while KPX can secure required intellectualizing the electric network (smart grid). KPX plans to actively push ahead with developing
reserves, serving a double advantages. and introducing advanced IT technologies which enable KPX’ s IT system like EMS and MOS, and
others to play a key role in intellectualizing the electric network.

Operation procedure of power demand response market

KPX Consumer

Major electric IT system

Determination of Available reduction
volume and price EMS(Energy Management System)
load reduction
volume Preparation
Price setting for load reduction

Real-time data Execution

of load reduction MOS(Market Operation System)
aquisition

Calculation of actual
reduction volume

Settlement Cash receiving

Current status of electric IT technology development

Role of KPX
System establishment and vitalization of power demand resource market

Establishment of a regular demand response market system and construction of Introduction of Korea Energy Management System[K-EMS]
the infrastructure to integrate power market

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2011 SMART KPX BROCHURE

 Smart Management

Since KPX established in 2001 as Asia’s first institution for power market and system
operation, it has actively conducted international cooperation activities with various power
exchanges with advanced countries and world leading electric businesses around the world. KPX has operated the education center since 2003, cultivating
professionals in power trading and system operation fields.
ANL 2005.12.9
PJM 2007.3.30
KPX Education Center
RTE 2007.12.12
CRIEPI 2006.10.17
ESCJ 2006.5.25
CAISO 2004.4.22 ERCOT 2003.2.26
KYUSHU EPCO 2005.3.15

EVN 2006.10.17
PEMC 2006.6.8

Additionally, since 2008, KPX has implemented customized training and consulting
services for international customers to support KEPCO & generation companies'
overseas business.
CAMMESA 2005.1.25

Institution signed a cooperative agreement or MOU with KPX

Name of nation and institution Date
Domestic education experiences
Electric Reliability Council of Texas (ERCOT) in the US, an independent system operator Feb., 2003
California Independent System Operator (CAISO) in the US, an independent system operator Apr., 2004
CompañÌa Administradora del Mercado Mayorista Eléctrico (CAMMESA) in Argentina, a power exchange Jan., 2005
KYUCHU Electric Power Company (EPCO) in Japan Mar., 2005
US Argonne National Laboratory (ANL) Dec., 2005
Electric Power System Council of Japan (ESCJ) May, 2006
Philippine Electricity Market Corporation (PEMC) June, 2006
Central Research Institute of the Electric Power Industry (CRIEPI) of Japan Oct., 2006
Electricity of Vietnam (EVN) Oct., 2006
US Pennsylvania, Jersey, Maryland Power Pool (PJM) Mar., 2007
24 French RTE (Reseau de Transport d'Electricite) Dec., 2007 Overseas business experiences 25
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2011 SMART KPX BROCHURE

MOU with PJM (smart grid) June, 2009
MOU with Chicago Climate Exchange (CCX) (pollution credits) June, 2009
MOU with Singapore Energy Market Company (EMC) (electric power market) Jan., 2010
MOU with Iran Grid Management Company (IGMC) (system operation) Mar., 2010
MOU with ASEAN countries (electric power plan, electricity system) Aug., 2010
-Electricité du Cambodge (EDC) in Cambodia, Electricité de Laos (EDL) in Laos, Perusahaan Listrik Negara (PLN) in Indonesia
 Smart Management

1. Current status of electric facilities 2. operation of electric power system

Statistics of power (as of the end of December, 2010)
Electricity supply and demand
system and market Generating facilities by fuel
80,000MW

operation Nuclear
17,716MW
70,000MW

reserve
capacity
23.3% LNG 20,471MW 60,000MW 6,000MW
oil
5,805MW
50,000MW 5,000MW

7.6%
26.9%
hydro 40,000MW 4,000MW
5,430MW Total Year 2004 2005 2006 2007 2008 2009 2010
7.1% Available
57,528 60,818 65,183 66,778 68,519 72,071 75,747
76,078MW capacity(MW)
2.4% Peak
demand(MW) 51,264 54,631 58,994 62,285 62,794 66,797 71,308
renewables Reserve
1,856MW capacity(MW) 6,264 6,187 6,189 4,493 5,725 5,274 4,439

Peak day July 29 (Thu) Aug.17(Wed) Aug.16(Wed) Aug.21(Tue) July 15(Tue) Dec.18(Fri) Dec.15(Wed)
32.6%

coal 24,800MW Electricity quality

100.00%

99.80%

99.60%

99.40%

Transmission and transformation facilities 99.20%

Division Transmission line(c-km) Transformer capacity(MVA) 99.00%

Year 2004 2005 2006 2007 2008 2009 2010

765kV 835 27,115
Voltage standards
345kV 8,580 108,096
compliance rate 99.96 99.96 99.99 99.99 99.98 99.99 99.99
154kV 20,777 120,683 (reference voltage±4kV)

66kV 253 423 Frequency standards

compliance rate 99.74 99.70 99.79 99.87 99.92 99.94 99.96
180kV(HVDC) 231 - (60±0.1Hz)

Total 30,676 256,318

Load factor and capacity factor

80%

26 27
70%
KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

Distribution facilities
Division Distribution line(c-km) Transformer capacity(MVA) 60%
22.9kV 428,259 101,692 Year 2004 2005 2006 2007 2008 2009 2010
Load factor 76.2 76.2 73.8 73.9 76.6 74.1 76.0
Capacity factor 66.5 67.5 66.9 67.9 67.7 67.8 73.3
 Smart Management

3. Operation of power market

Settlement cost by fuel source Power trading amount by company

kWh 200 7,000

180
6,000

160

5,000
140

4,000
120

100 3,000

80
2,000

60

1,000
40

20 0
2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010

Trends of system marginal price by year/month Trends of monthly power trading amount

2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010
kWh) 170 3,500

2010

2009
130 2009

3,000
2010

100 2008

2,500

90
2008

2007

80 2006 2,000
2007

2006
70
2005
1,500
2005

28 2004 29
60
KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

2004 1,000

50

40 500
Jan. Feb. Mar. Apr. May. June. July. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. June. July. Aug. Sep. Oct. Nov. Dec.
 Smart Management

The past nine years went by quickly but in that time the performances that KPX
achieved were valuable. KPX will continue to make efforts to bring about a smart
world with bountiful energies.

2009~2010
Apr.02, 2009 Held the Korea-Japan Electricity Technology
Symposium.
June 09, 2009 Concluded the smart grid cooperative
2006~2008 agreement with PJM.
June 15, 2009 Concluded the multilateral MOU with Chicago
Oct. 29, 2006 Held the 11th Annual General Meeting of the Climate Exchange.
Association of Power Exchanges. July 07, 2009 Established and announced the brand
Nov.25, 2006 Won the grand prize in public sector of the slogan.
22nd Kyunghyang Electricity Energy Award. Sep.10, 2009 Won the grand prize in process sector of the
Dec.01, 2006 Published KPX 5-year history. National Productiveness Award.
Dec.12, 2006 Announced the 3rd basic plan for long-term Jan.01, 2010 Executed price system by region in power
electricity supply and demand. market.
2004~2005 Dec.14, 2006 Established 2020 long-term management Jan.28, 2010 Concluded the power market MOU with EMS.
strategy. Apr.14, 2010 The 5th chairman and CEO (Myeongcheon
Mar.12, 2004 Completed Jeju Branch new building. Dec.20, 2006 Organized KPX Welfare Service Corps Yeom) inaugurated.
Aug.09, 2004 Started the electricity statistics system (Bandi Corps). Apr.17, 2010 Commercially operated 765kV Sintaebaek,
service Jan.19, 2007 Won the grand prize of the 7th National Seosan, Singapyeong T/L (765kV east-west
Public Innovation Competition. line connected).
Sep.03, 2004 Won the grand prize in leadership of the
national productiveness innovation Mar.30, 2007 Concluded the cooperative agreement with Aug.04, 2010 Prime Minister, Unchan Jeong visited KPX.
competition led by the Ministry of PJM and exchanged human resources. Oct.04, 2010 Conducted a power market training project
Commerce, Industry and Energy. June 15, 2007 Completed the Cheonan Branch building. for ASEAN countries.
Dec.30, 2004 Announced the 2nd basic plan for long- June 21, 2007 Held the 3rd Seoul International Conference Oct.15, 2010 Concluded the autonomous agreement for
term electricity supply and demand. for Electricity Market. the maintenance of the Korean Energy
May 30, 2005 The 3rd chairman and CEO (SuhunPark) Management System (K-EMS).
Sep.11, 2007 Won the grand prize of the 2007 National
2001~2003 inaugurated. Productiveness Innovation Competition Oct.31, 2010 Successfully developed the Korean Energy
June 29, 2005 Designated as a 2004 superior institution (public corporation sector - presidential Management System (K-EMS).
Apr.02,2001 KPX established. by the government’ s management citation). Nov.05, 2010 Constructed Jeju Smart Grid Test Bed.
The first chairman and CEO (Yeonggi evaluation (2nd place in financial revenues) Jan.01, 2008 Established and operated an enterprise risk Nov.22, 2010 Obtained the government certification for the
Baeak) inaugurated. July 06, 2005 Held an international conference of the management system (ERM). superior institution to cultivate human
Sep.13, 2001 Installed and started operating the next electricity market and system operation. Jan.25, 2008 Held the completion ceremony of the resources (Best HRD)
generation EMS interim system. Sep.28, 2005 Had the groundbreaking ceremony of the Cheonan Branch building and started Dec.15, 2010 Passed the peak electricity of 70,000MW for
Sep.30, 2001 Completed backup system for cost-based Cheonan Branch building. operating the facilities. the first time (70,000MW at 18:00 o’ clock).
power pool Nov.08, 2005 Concluded Korean EMS development June 12, 2008 The 4th chairman and CEO (Ilhwan Oh) Dec.20, 2010 Conducted an invitational training project for
May 02, 2002 The 2nd chairman and CEO agreement (Ministry of Commerce, Industry inaugurated. Iranian GMC in power system operation field
(Yeongjun Kim) inaugurated. and Energy). Sep.09, 2008 Won the Knowledge Economy Minister Prize Dec.22, 2010 Won the Presidential Prize of the Labor
July 31, 2002 Completed and started operating next Nov.08, 2005 Won the Prime Minister Prize in public in labor management cooperation sector of Management Coexistence Cooperation
generation EMS main system. sector of the 21st Kyunghyang Electricity the National Productiveness Award. Award.
Aug.17, 2002 Announced the 1st basic plan for long- Energy Award. Nov.04, 2008 Announced the sustainable management. Dec.29, 2010 Announced the 5th basic plan for electricity
term electricity supply and demand. Nov.19, 2005 Obtained Quality Management System ISO Dec.05, 2008 Won the Prime Minister Prize of the Korea IT supply and demand.
30 9001 certification in system operation 31
Oct.31, 2002 Decided to build Jeju Dispatch Center. Innovation Award.
(Korea Standards Association).
KOREA POWER EXCHANGE

2011 SMART KPX BROCHURE

Jan.01, 2003 Established an e-finance transfer system. Dec.31, 2008 Announced the 4th basic plan for long-term
May 31, 2003 Installed MOS backup system. Dec.06, 2005 Won the grand prize in innovative electricity supply and demand.
July 25, 2003 Announced the ethics charter and the management of the 2005 Korea
code of conduct. Management Award (Korea Standards
Aug.04, 2003 Purchased the site to build the Cheonan Association).
Branch.
Sep.30, 2003 Completed MOS main system.