• The Korean Journal of Community Living Science
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• v.27 no.2
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• pp.281-294
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• 2016

This study was conducted to promote consumer interest in Geothermal Heat Pump (Ground Source Heat Pump, GSHP) and district heating and cooling (District Heating & Cooling, DHC) systems, which are competing with each other in the heating and cooling field. Considering not only the required cost data of energy itself, but also external influence factors, the optimal mix ratio of these two energy systems was studied as follows. The quantitative data of the two energy systems was entered into a database and the non-quantitative factors of external influence were applied in the form of coefficients. Considering both of these factors, the optimal mix ratio of GSHP and DHC systems and minimum Life Cycle Cost (LCC) were obtained using an algorithm model design. The Optimal Energy Mix of GSHP & DHC (OEMGD) algorithm was developed using a software program (Octave 4.0). The numerical result was able to reflect the variety of external influence factors through the OEMGD algorithm. The OEMGD model found that the DHC system is more economical than the GSHP system and was able to represent the optimal energy mix ratio and LCC of mixed energy systems according to changes in the external influences. The OEMGD algorithm could be of help to improve the consumers' experience and rationalize their energy usage.

• Environmental and Resource Economics Review
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• v.20 no.2
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• pp.335-356
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• 2011

In this paper, we attempted to suggest a way to evaluate appropriateness and efficiency for the energy consumption structure. For this, based on Markowitz (1952)' mean-variance portfolio model, we constructed an optimal fossil fuel mix. In constructing the optimal mix, we first defined returns on fossil fuels (oil, coal and natural gas) as TOE (Ton of Oil Equivalent) per $1. Then, by using the dynamic latent common factor model, we decomposed the growth rates of the returns on each fossil fuel into two parts : the common part and the idiosyncratic part. Finally, based on the results from the dynamic latent common factor model, we constructed the optimal fossil fuel mix implied by the mean-variance portfolio model. Our results indicate that for the fossil fuel mix to be on the efficient frontier, it is crucial to reduce oil consumption as low as possible. Moreover, our results imply that it is more efficient to increase natural gas consumption rather than coal consumption in reducing oil consumption. These results are in line with the strategies for the future energy consumption structure pursued by Korea and indicate that reduction in oil use can improve overall efficiency in energy consumption.

• Journal of Korean Institute of Industrial Engineers
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• v.39 no.3
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• pp.183-191
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• 2013

We address the power generation mix problem that considers not only nuclear and fossil fuels such as oil, coal and LNG but also renewable energy technologies. Unlike nuclear or other generation technologies, the expansion plan of renewable energy is highly uncertain because of its dependency on the government policy and uncertainty associated with technology improvements. To address this issue, we conduct a delphi survey and forecast the capacity of renewable energy. We further propose a stochastic mixed integer programming model that determines an optimal capacity expansion and the amount of power generation using each generation technology. Using the proposed model, we test eight generation mix scenarios and particularly evaluate how much the expansion of renewable energy contributes to the total costs for power generation in Korea. The evaluation results show that the use of renewable energy incurs additional costs.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.61 no.4
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• pp.522-533
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• 2012

This paper presents an adaptive strategy of GENCOs for reducing the greenhouse gas by fuel mix change. Fuel mix stands for generation capacity portfolio composed of different fuel resources. Currently, the generation sector of power industry in Korea is heavily dependent on fossil fuels, therefore it is required to change the fuel mix gradually into more eco-friendly way based on renewable energies. The generation costs of renewable energies are still expensive compared to fossil fueled resources. This is why the adaptive change is more preferred at current stage and this paper proposes an optimal strategy for capacity planning based on multiple environmental scenarios on the time horizon. This study used the computer program tool named GATE-PRO (Generation And Transmission Expansion PROgram), which is a mixed-integer non-linear program developed by Hongik university and Korea Energy Economics Institute. The simulations have been carried out with the priority allocation method in the program to determine the optimal mix of NRE(New Renewable Energy). Through this process, the result proposes an economic fuel mix under emission constraints compatible with the greenhouse gas mitigation policy of the United Nations.

• Journal of Electrical Engineering and Technology
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• v.13 no.1
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• pp.513-520
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• 2018

Since Paris Climate Change Conference in 2015, many policies to reduce the emission of greenhouse gas have been accelerating, which are mainly related to renewable energy resources and micro-grid. Presently, the technology development and demonstration projects are mostly focused on diversifying the power resources by adding wind turbine, photo-voltaic and battery storage system in the island-type small micro-grid. It is expected that the large-scaled micro-grid projects based on the regional district and town/complex city, e.g. the block type micro-grid project in Daegu national industrial complex will proceed in the near future. In this case, the economic cost or the carbon emission can be optimized by the efficient operation of energy mix and the appropriate construction of electric and heat supplying facilities such as cogeneration, renewable energy resources, BESS, thermal storage and the existing heat and electricity supplying networks. However, when planning a large residential town or city, the concrete plan of the energy infrastructure has not been established until the construction plan stage and provided by the individual energy suppliers of water, heat, electricity and gas. So, it is difficult to build the efficient energy portfolio considering the characteristics of town or city. This paper introduces an energy mix optimization(EMO) method to determine the optimal capacity of thermal and electric resources which can be applied in the design stage of the real large-scaled residential town or city, and examines the feasibility of the proposed method by applying the real heat and electricity demand data of large-scale residential towns with thousands of households and by comparing the result of HOMER simulation developed by National Renewable Energy Laboratory(NREL).

• Environmental and Resource Economics Review
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• v.28 no.2
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• pp.201-229
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• 2019

This paper estimates the effects of generation mix changes in the $7^{th}$ and $8^{th}$ Basic Plan for Long-term Power Supply and Demand from two aspects: economic efficiency through electricity prices and environmental performance through $CO_2$ and air pollutants(NOx, SOx, PM) emissions. Particularly, we examined additional generation mix conversion paths that take into account the trade-off between economic efficiency and environmental performance through scenario analysis. According to our results, the conversion from the $7^{th}$ plan to the $8^{th}$ plan should increase the electricity prices in the mid- and long-term, while reducing GHG and air pollutants emissions at the same time. The alternative generation mix that combines $7^{th}$ and $8^{th}$ plans shows that there exists a path to mitigate the trade-off between economic and environmental in the long-term. It will be next to impossible to derive a optimal generation mix that simultaneously considers the core values, such as supply stability, environmental performance, economic efficiency, energy safety and energy security, when establishing the power supply and demand plan. However, by exploring the effects of various generation mix paths and suggesting near-optimal paths, people can best choose their direction after weighhing all the paths when deciding on a forward-looking generation mix in the long term.

• IE interfaces
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• v.17 no.3
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• pp.269-281
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• 2004

How to maintain the optimal electric power generation mix is one of the important problems in electric power industry. The objective of this study is to develop a computer model which can be used to forecast the investment in power generation unit by the plant owners after restructuring of electric power industry. Restructuring of electric power industry will make difference in decision making process of investment in power generation unit. After Privatiazation of Power Industry, Gencos will think that profit is the most important factor among all others attracting the investment in the industry. Coal power generation is better than LNG CCGT in terms of profit. However, many studies show that LNG CCGT will be main electric power generation source because the rest of factors other than profit in LNG CCGT are superior than Coal power generation. The impacts of the various government policies can be analyzed using the computer model, thus the government can formulate effective policies for achieving the desired electric power generation mix.

• Journal of Korean Society for Quality Management
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• v.18 no.2
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• pp.69-80
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• 1990

This paper highlights the economic effects of nuclear power plants standardization in Korea. The major effects of nuclear power plants standardization appear in the reduction of time-related costs. By using this major economic effects of standardization, an optimal plant mix of electric power until the year 2005 is suggested by means of WASP computer model. And the effects between the standardized case and the non-standardized case is compared.

• IE interfaces
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• v.21 no.1
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• pp.75-84
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• 2008

It is a difficult task for decision makers(DMs) to choose an appropriate release plan which balances the conflicts between water storage and hydro-electric energy generation in a multi-reservoir operation problem. In this study, we proposed a DEA-based ranking procedure by which the DM can rank the potential alternatives and select the best solution among the Pareto-optimal solutions. The proposed procedure can resolve the problem of mix inefficiency that may cause errors in measuring the efficiency of alternatives. We applied the proposed procedure to the multi-reservoir operation problem for the Geum-River basin and could choose the best efficient solution from the Pareto-set which were generated by the Coordinated Multi-Reservoir Operating Model.

• Environmental and Resource Economics Review
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• v.11 no.2
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• pp.211-231
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• 2002

This paper summarizes the results of a study that assess how a demand side management (DSM) system addresses key economic and environmental challenges facing in the Korean natural gas sector considering; ${\bullet}$ high discrepancies of seasonal consumption volume and of load factor in unmatured domestic LNG market, ${\bullet}$ unfavorable and volatile international LNG market, imposing with the contestable "take-or-pay" contract terms, ${\bullet}$ low profile of LNG and existence of market barriers against an optimal fuel mix status in the industrial energy sector. A particular focus of this study is to establish an 'extended' DSM system in the unmatured gas market, especially in industry sector, that could play a key role to assure an optimum fuel mix scheme. Under the concept of 'extended' DSM, a system dynamics modeling approach has been introduced to explore the option to maximize economic benefits in terms of the national energy system optimization, entailing different ways of commitments accounting for different DSM measures and time delay scenarios. The study concludes that policy options exist that can reduce inefficiencies in gas industry and end-use system at no net costs to national economy. The most scenarios find that, by the year 2015, it is possible to develop a substantial potential of increased industrial gas end-uses under more reliable and stable load patterns. Assessment of sensitivity analysis suggests that time delay factor, in formulating DSM scenarios, plays a key role to overcome various market barriers in domestic LNG market and provides a strong justification for the policy portfolios 'just in time' (time accurateness), which eventually contribute to establish an optimum fuel mix strategy. The study indicates also the needs of advanced studies based on SD approach to articulate uncertainty in unmatured energy market analysis, including gas.