• 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.

• Environmental and Resource Economics Review
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• v.33 no.3
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• pp.203-239
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• 2024

The introduction of a regional differential electricity rate system is being discussed, and the LMP (Locational Marginal Price) method is mentioned as a promising alternative. Under this background, this study analyzed a mathematical model and suggests that the LMP method produces results that maximize social welfare. The analysis was conducted separately for long-term decision-making where transmission capacity can be expanded, and for short-term decision-making in which transmission capacity is given. The analysis for short-term decision-making was conducted for peak load situations where capacity is insufficient and for non-load situations with spare capacity. The results of the analysis suggested that the price to maximize social welfare is equal to the marginal power generation cost by region, and the difference in marginal cost by region reflects the value lost due to transmission loss and compensation for transmission network investment. In addition, if the transmission capacity is less than the optimal capacity, the compensation for transmission network investment exceeds the incremental cost, providing an incentive to invest in the transmission network. If the transmission capacity exceeds the optimal capacity, the compensation for transmission network investment becomes lower than incremental cost or zero and the investment is not recovered, suppressing the investment in transmission networks. The results are the same as the LMP method suggests, and this means that this method maximizes social welfare and provides an optimal transmission network investment signal. The above analysis results contribute to understanding the characteristics of LMP. In addition, this study discussed what changes are needed in the electricity market when introducing the LMP concept.

• Journal of Agricultural Extension & Community Development
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• v.11 no.2
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• pp.251-265
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• 2004

The agricultural sector's economic structure in Korea is regarded to encounter major barriers on the way toward revitalizing its economic prosperity. Among many, the energy-related problem is one of prime nuclei embedded in the country's agricultural sector. The ought-to-come structural changes in the country's agricultural energy system hinge upon the central government's policy direction as well as efforts of local governments and local farming community members. The indirect aids via 'cross subsidy' of electricity tariff rate and 'tax-exempt price' of oil fuels are two notable causes of the unsustainable energy consumption pattern in the country's agricultural sector. As measures, demand-side management(DSM) and energy-efficiency promotions are regarded to be the most attractive methods for energy conservation and economic productivity as well. Development of renewable energy sources are also receiving a great deal of attention for the long-term alternatives to the country's existing oil-based agricultural production mode. This study examines the contributive potential of DSM approaches and renewables-based technologies. With the critical evaluation on the concurrent adversities of the country's agricultural energy system, various sources of renewable energy-solar power, wind power, biomass, etc.-are examined for the purpose of technological and economical viability. As sufficient potentials of renewable energy sources are being estimated, both the system production cost and the installation cost for the county's rural areas are expected to lower in the long term. DSM options are also evaluated to be fruitful even in the short term. Both the public and civil arenas must galvanise each side's effort in order to promote these policy options and community potentials.

• Environmental and Resource Economics Review
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• v.19 no.1
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• pp.159-198
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• 2010

The Korean government is planning to introduce the Renewable Portfolio Standard (RPS) system to replace the currently used Feed-in-Tariff (FIT) system which is a subsidy-based mechanism to foster the renewable energy industry. The RPS system is a market-oriented system in which the power companies are obliged to use renewable energy sources to produce electricity by a certain ratio of their production level. They can either produce for themselves or simply purchase the REC (renewable energy certificate) in the market to implement. The objective of this article is to compare the RPS system with the current FIT system in terms of the implementing cost to achieve the policy goal to expand the share of renewable energy m the total power generation. The analysis is conducted using Linear Programming models. The results of this study imply several policy suggestions to successfully introduce the RPS system.

• Journal of KIBIM
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• v.5 no.4
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• pp.53-62
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• 2015

Korea has been at the forefront of green growth initiatives. In 2008, the government declared the new vision toward 'low-carbon society and green growth'. The government subsidies and Feed-in Tariff (FIT) increased domestic usage of solar power by supplying photovoltaic housing and photovoltaic generation systems. Since 2000, solar power industry has been the world's fastest growing source with the annual growth rate of 52.5%. Especially, BIPV(Building Integrated Photovoltaic) systems are capturing a growing portion of the renewable energy market due to several reasons. BIPV consists of photovoltaic cells and modules integrated into the building envelope such as a roof or facades. By avoiding the cost of conventional materials, the incremental cost of photovoltaics is reduced and its life-cycle cost is improved. When it comes to atypical building, numerous problems occur because PV modules are flat, stationary, and have its orientation determined by building surface. However, previous studies mainly focused on improving installations of solar PV technologies on ground and rooftop photovoltaic array and developing prediction model to estimate the amount of produced electricity. Consequently, this paper discusses the problem during a planning and design stage of BIPV systems and suggests the method to select optimal design of the systems by applying the national strategy and economic policies. Furthermore, the paper aims to develop BIM tool based on the engineering knowledge from experts in order for non-specialists to design photovoltaic generation systems easily.

• Journal of Korea Water Resources Association
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• v.52 no.8
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• pp.565-573
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• 2019

An optimization model of water intake planning is developed based on a linear programming (LP) for the intelligent water purification plant operation system. The proposed optimization model minimizes the water treatment costs of raw water purification by considering a time-delay of treatment process and hourly electricity tariff, which is subject to various operation constraints, such as water intake limit, storage tank capacity, and water demand forecasts. For demonstration, the developed model is applied to H water purification center. Here, we have tested three optimization strategies and the results are compared and analyzed in economic and safety aspects. The optimization model is expected to be used as a decision support tool for optimal water intake scheduling of domestic water purification centers.

• Environmental and Resource Economics Review
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• v.16 no.2
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• pp.275-311
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• 2007

Hydrogen energy is emphasized as a substitutable energy of carbon-based energy system in the future, since it is non-depletable and clean energy. Long term vision of Korean government on the national energy system is to promote hydrogen energy by 15% of final energy demand until 2040. This study analyzes economic impacts of hydrogen energy development employing a dynamic CGE model for Korea. Frontier technology such as hydrogen energy is featured as slow diffusion at the initial stage due to the learning effect and energy complementarity. Without government intervention, hydrogen energy would be produced upto 6.5% of final energy demand until 2040. However, if government subsidizes sales price of hydrogen energy by 10%, 20%, and 30%, share of hydrogen energy would increase 9.2%, 15.2%, and 37.7% of final energy demand. This result shows that the slow diffusion problem of hydrogen energy as frontier technology could be figured out by market incentive policy. On the other hand, production levels of transportation sector would increase while growth rate of oil and electricity sectors would decline. Household consumption would be affected negatively since increase of consumption due to the price decrease would be overwhelmed by income reduction owing to the increase of tax. Overall, GDP would not decrease or increase significantly since total production, investment, and export would increase even if household consumption declines.

• Journal of Energy Engineering
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• v.29 no.2
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• pp.68-78
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• 2020

According to the new climate change agreement, technology development to reduce greenhouse gases is actively conducted worldwide, and research on energy efficiency improvement in the field of power generation and transmission and distribution is underway [1,2]. Economic analysis of the operation method of storing and supplying surplus electricity using energy storage devices, and using energy storage devices as a frequency adjustment reserve power in regional cogeneration plants has been reported as the most profitable operation method [3-7]. Therefore, this study conducted an economic analysis for the installation of energy storage devices in the combined heat and power plant in the Czech Republic. The most important factor in evaluating the economics of battery energy storage devices is the lifespan, and the warranty life is generally 10 to 15 years, based on charging and discharging once a day. For the simulation, the ratio of battery and PCS was designed as 1: 1 and 1: 2. In general, the primary frequency control is designed as 1: 4, but considering the characteristics of the cogeneration plant, it is set at a ratio of up to 1: 2, and the capacity is simulated at 1MW to 10MW and 2MWh to 20MWh according to each ratio. Therefore, life was evaluated based on the number of cycles per year. In the case of installing a battery energy storage system in a combined heat and power plant in the Czech Republic, the payback period of 3MW / 3MWh is more favorable than 5MW / 5MWh, considering the local infrastructure and power market. It is estimated to be about 3 years or 5 years from the simple payback period considering the estimated purchase price without subsidies. If you lower the purchase price by 50%, the purchase cost is an important part of the cost for the entire lifetime, so the payback period is about half as short. It can be, but it is impossible to secure profitability through the economy at the scale of 3MWh and 5MWh. If the price of the electricity market falls by 50%, the payback period will be three years longer in P1 mode and two years longer in P2 and P3 modes.