# Implementation of a Demand-Side Management Solution for South Korea's Demand Response Program
## 2 Materials and Methods
### Development of Demand-Side Management Solution (DSMS)  
To realize the trading mechanism of a demand response market, as shown in Figure 1, the structure of a demand-side management solution is designed, as shown in Figure 2. The DSMS directly captures usage data by sensor every 5 min from demand resources such as a house, building, apartment, and factory. After that, these usage data are sent to the KPX server every 5 min. If a power shortage occurs, the KPX sends a reduction order to the DSMS. When the request is generated from KPX, the DSMS calculates the CBL of the DR duration time and, then, contacts the DR resources to request the contracted power reduction amount, and after that, demand curtailment begins. In the system operation process, consumers are required to cut down on demand within an hour of the dispatch order. The DSMS also calculates the RRMSE (relative root mean square error), the CBL (customer baseline load) of the DR resources, regularly to keep the DR resources in the Korea electricity market. \begin{table}
\begin{tabular}{c c c c c c} \hline \hline
**Year** & **2010** & **2011** & **2012** & **2013** & **2014** \\ \hline No. of consumers & 90 & 119 & 158 & 159 & 159 \\ \hline Capacity available for curtailment (MW) & 2219 & 3049 & 3612 & 3615 & 3615 \\ \hline Curtailed energy (MWh) & 513 & 690 & 785 & 556 & 682 \\ \hline \hline \end{tabular}
\end{table} 
Table 1: Consumers and curtailed power before market opening [23]. \begin{table}
\begin{tabular}{c c c c c c c c} \hline \hline
**Year** & **2014.12–** & **2015.06–** & **2015.12–** & **2016.06–** & **2016.12–** & **2017.06–** & **2017.12–** & **2018.06–** \\  & **2015.05** & **2015.11** & **2016.05** & **2016.11** & **2017.05** & **2017.11** & **2018.05** & **2018.11** \\ \hline No. of DR aggregators & 11 & 15 & 14 & 15 & 14 & 17 & 20 & 22 \\ \hline No. of consumers & 861 & 1323 & 1519 & 1970 & 2223 & 3195 & 3580 & 3592 \\ \hline Capacity available for Curtailment (MW) & 1520 & 2444 & 2889 & 3272 & 3885 & 4352 & 4271 & 4222 \\ \hline Curtailed energy (MWh) & 117,075 & 91,034 & 98,898 & 293,955 & 113,661 & 62,110 & 121,206 & - \\ \hline \hline \end{tabular}
\end{table} 
Table 2: Consumers and curtailed power after market opening (provided by KPX, July 2018). Figure 2: The structure of a demand-side management solution. The CBL is the prediction of the amount of electricity that would generally be used if electricity consumption had not been reduced by the KPX directive [27]. Figure 3 shows the power consumption and CBL of the desired date and time. The bar graph illustrates power usage at 5 min, 10 min, and 30 min, respectively and the line means the CBL of every hour. At the bottom, the dialog box shows contracted curtail power, CBL, load, result of curtailed power, and remained contracted curtail power in order. Figure 4 illustrates a customer baseline load (CBL) calculation. The CBL is an average hourly energy consumption calculated as follows: According to the KPX guideline, the CBL calculation method is either MAX 4/5 or Mid 6/10. The Max 4/5 method is calculated using the electricity usage in normal working for 5 consecutive days. To calculate the CBL, first, the smallest electricity usage day of the 5 days is excluded, then, the average usage for 4 days is used as Max 4/5 CBL. The Mid 6/10 method is calculated based on the power electricity usage in normal working for 10 consecutive days. Two days are excluded from the top and bottom usage of the 10 days, respectively. The average usage of the remaining six days is used as Mid 6/10 CBL. Table 3 explains how to calculate the CBL as MAX 4/5. First, D-2 is the smallest electricity usage day, therefore, this day is excluded. Then, the average usages of the remained 4 days are added, and then divide by 4 [27]. Figure 4: Customer baseline load calculation. Figure 3: Dashboard of power usage. To estimate the DR reduction value, the pattern of regular power use should be fairly uniform, and an objective evaluation technique is required.