Journal of the Korean Institute of Electrical and Electronic Material Engineers (한국전기전자재료학회논문지)

The Korean Institute of Electrical and Electronic Material Engineers (한국전기전자재료학회)
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Evaluating Economic Feasibility of Solar Power Generation Under the RPS System Using the Real Option Pricing Method: Comparison Between Regulated and Non-regulated Power Providers

실물옵션을 활용한 RPS 실시에 따른 태양광 발전의 경제성 평가: 공급의무 발전사와 일반 발전사와의 비교

  • Kim, Eun-Man (Department of Energy Economics and Policy, Korea Polytechnic University) ;
  • Kim, Myung-Soo (Department of Photovoltaic Engineering, Far East University)
  • 김은만 (한국산업기술대학교 에너지정책학과) ;
  • 김명수 (극동대학교 태양광공학과)
  • Received : 2013.08.07
  • Accepted : 2013.08.24
  • Published : 2013.09.01
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Abstract

This study reviewed how the changes of the government policy on solar power generation projects affected the annual mandatory quotas of the regulated power providers under the RPS (renewable portfolio standard) system and analysed economic feasibility of the investment for meeting their quotas as compared to the case of non-regulated power providers. The analysis results showed that under the discount rate of 7.5%, which was used for the annual national electricity plans for the recent years, both the regulated and non-regulated power providers achieved economic feasibility under both the NPV (net present value) method and the real option pricing method. It was also shown that higher profitability was attained by non-regulated power providers than by their regulated counterparts, which can be attributable to the fact that regulated providers are required to out-source 50% of the total quota. The results of this study are considered to be useful for establishing a meaningful mid term or long term strategy for the future of solar power generation linked to the current RPS system.

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References

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