Demand response operation rules based on reliability for South Korean power system

This paper describes the demand response operation rules based on reliability for the South Korean power system. Due to the increasing electric power demand, the methods used to increase power generation have reached a limit becoming a social, economic and environmental problem. The conventional DR program in South Korea has a history of contracts, creating many disadvantages. Because of this, this paper introduces a more effective DR program than the conventional one in order to protect participant returns. The incentive based DR program offers an incentive when the participants fulfill their contracts or remits a penalty when the participants do not fulfill them. There are some elements that separate the incentive based DR from the price based DR; the penalty, the mandatory requirements, the necessity of the customer baseline load (CBL), the DR event pre-call, and the incentive. This paper also designs DR operation rules based on reliability, suitable for resource planning.