Korea Power Exchange Cost-Based Pool

Republic of Korea (mainland power system). Status: operational.

Wholesale design: Mandatory cost-based pool with KEPCO as the principal single buyer. KPX prepares day-ahead schedules from verified variable costs and determines the system marginal price; capacity and ancillary payments are rule-based rather than separate open auctions.

Operator
Korea Power Exchange (KPX)
Nominal frequency
60 Hz
Where energy trades

Where does energy trade in Korea Power Exchange Cost-Based Pool?

Energy in Korea Power Exchange Cost-Based Pool trades in 2 layers: day-ahead cost-based energy schedule and system marginal price settlement.

What a battery can sell

What ancillary services can a battery sell in Korea Power Exchange Cost-Based Pool?

Korea Power Exchange Cost-Based Pool has 6 ancillary-service products, across 4 families — frequency containment, automatic frequency restoration, manual frequency restoration and operating reserve: Downward Frequency Reserve, Fast-Response Resource, Frequency-Control Reserve, Primary Reserve, Secondary Reserve, Tertiary Reserve. Response timing, direction and eligibility for each are in the cards below, as the official sources state them.

Facts below are stated as the official sources state them. A missing line means the source does not state that value — never that the value is zero.

Frequency containment

  • Primary Reserve 1차예비력

    operational

    Provide the first automatic frequency response after a fault.

    Direction
    raise; lower
    Full activation
    10 s
    Sustain
    at least 5 min
    Trigger / range
    Frequency deviation; available capacity is assessed at plus/minus 0.2 Hz deviation.
    Eligibility
    Centrally dispatched generators on governor-free control and qualifying electricity-storage devices.
    Typical procurement
    1000 MW

Automatic frequency restoration

  • Secondary Reserve 2차예비력

    operational

    Restore frequency after transient recovery and replace primary response following a contingency.

    Direction
    raise; lower
    Full activation
    10 min
    Sustain
    at least 30 min
    Trigger / range
    KPX AGC signal following a contingency.
    Eligibility
    Centrally dispatched AGC-capable generating units.
    Typical procurement
    1400 MW

Manual frequency restoration

  • Tertiary Reserve 3차예비력

    operational

    Replace faster reserves and restore operating margin after a contingency.

    Direction
    raise
    Full activation
    30 min
    Trigger / range
    KPX dispatch instruction.
    Eligibility
    Centrally dispatched generating units capable of starting/ramping within the required time.
    Typical procurement
    1400 MW

    The Market Rules specify availability within 30 minutes but the cited definition does not state one universal sustain duration.

Operating reserve

  • Downward Frequency Reserve 하향주파수조정예비력

    operational

    Provide controlled downward response when supply exceeds demand.

    Direction
    lower generation; raise load
    Full activation
    10 min
    Sustain
    at least 30 min
    Trigger / range
    KPX AGC/remote output-control signal.
    Eligibility
    Eligible centrally dispatched resources with downward regulation capability.
    Typical procurement
    1200 MW

  • Fast-Response Resource 속응성자원

    operational

    Provide additional start-capable generation outside the core operating-reserve taxonomy for extended system needs.

    Direction
    raise
    Full activation
    20 min
    Sustain
    at least 4 h
    Trigger / range
    KPX dispatch instruction.
    Eligibility
    Centrally dispatched generators capable of starting within 20 minutes and sustaining four hours.
    Typical procurement
    No stable minimum requirement was supported by the cited rule extract.

  • Frequency-Control Reserve 주파수제어예비력

    operational

    Maintain frequency during normal operation using AGC and remotely controlled storage.

    Direction
    raise; lower
    Full activation
    5 min
    Sustain
    at least 30 min
    Trigger / range
    KPX AGC/remote output-control signal.
    Eligibility
    Eligible centrally dispatched generating units and storage with AGC/remote-control capability.
    Typical procurement
    700 MW
Getting paid to exist

Does Korea Power Exchange Cost-Based Pool have a capacity mechanism?

No central capacity market. Korea Power Exchange Cost-Based Pool has 1 capacity/adequacy arrangement — KPX Capacity Payment — and it works differently.

KPX Capacity Payment

operational

Eligible generators receive rule-based capacity payments within the cost-based pool. There is no separate competitive forward-capacity auction with a clearing price and delivery obligation comparable to Japan's market.

Auction held in 2025
No — No capacity auction for this market was found to have been held during 2025 in the sources reviewed.

No capacity auction result exists for calendar 2025; published KPX statistics are aggregate administrative payments, not auction outcomes.

Caveats

Technical notes

KPX administratively secures operating-reserve categories and settles eligible centrally dispatched resources under the Market Rules.

Where this comes from

Official sources

Rules

Service specification

Market explainer

Current as of · from the Global Electricity Market Catalogue v1.2.0 (compiled to , CC BY 4.0). Facts belong to the linked official authorities; verify the current rules before design or bidding decisions.

Questions

Common questions about Korea Power Exchange Cost-Based Pool

Who operates Korea Power Exchange Cost-Based Pool?
Korea Power Exchange (KPX) operates Korea Power Exchange Cost-Based Pool, covering Republic of Korea (mainland power system).
Was a qualifying capacity event held in Korea Power Exchange Cost-Based Pool in 2025?
No. KPX Capacity Payment: no qualifying 2025 event is recorded. No capacity auction for this market was found to have been held during 2025 in the sources reviewed.
How is energy traded, priced and settled in Korea Power Exchange Cost-Based Pool?
Korea Power Exchange Cost-Based Pool: Mandatory cost-based pool with KEPCO as the principal single buyer. KPX prepares day-ahead schedules from verified variable costs and determines the system marginal price; capacity and ancillary payments are rule-based rather than separate open auctions.
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