A Study on the Subside Policy of District Heating CHP System in a Competitive Electricity Market

전력분야 경쟁도입에 따른 열병합발전소 지원정책 고찰

Electric generation cost in district Heating CHP system has close relationship with the level of heating price. So far, the calculation of CHP generation cost has been based on cost recovery system in which revenue requirement deducted the revenue from heating-sales. The restructuring of electricity industry determines the market-clearing price every hour and made it impossible that the loss due to the above market cost can be attributed to the generation cost. Hence, the loss is compensated by energy subsidy program in public benefit charge. This analysis derives an efficient action plan for future subsidy program.