Kim Jip argues for regional power pricing reflecting grid reality
A public hearing on industrial regional electricity rates has brought renewed attention to a regional wholesale pricing system that has been anticipated for years.
Our take
Who gains from regional wholesale power pricing in Korea, storage near Seoul or in the regions?
Storage outside the capital region gains from Korea's planned regional wholesale price through cheaper daytime charging in a power exchange mock run, but mainland regional pricing is not yet in force.
The mock separates prices only in hours when transfer lines into the capital region reach their limit, and the exchange says that basis is still under review. What decides is how much of the price gap the final settlement rule leaves in place instead of offsetting it.
For investors — Merchant storage investors and optimisers should model storage outside the capital region on lower daytime charging prices rather than higher discharge prices, and treat the mock results as a review basis, not a settlement rule.
Solar developers outside the capital region should expect the same change to lower midday wholesale prices, which matters for any revenue linked to the spot price.
Watch: Ongoing discussions and public hearings regarding the implementation of a regional wholesale electricity pricing system.
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