New & Renewable Energy (신재생에너지)

Korean Society for New and Renewable Energy (한국신·재생에너지학회)
권호 표지
DOI QR코드

DOI QR Code

Study on the Development of an Evaluation Index for the Local Economy Activation of Community Investment Renewable Energy Projects

대규모 주민참여형 재생에너지 사업의 지역경제 활성화 평가지표 개발 연구

  • Received : 2021.05.07
  • Accepted : 2021.06.15
  • Published : 2021.06.25
Download PDF
⟨ Previous Next ⟩

Abstract

In Korea, various community investment renewable project models are being implemented to increase community acceptance of renewable energy. An important factor for enhancing local acceptance is that renewable energy projects have a positive effect on revitalizing the local economy such as income increase or job creation for residents and local companies. To maximize the local economic effect of large-scale community investment renewable energy projects, this study developed an evaluation index for local economy activation, whose indicators are the local return on investment, local companies' participation, local job creation, regional cooperation, transparency, and governance. Analysis of existing evaluation indicators and current renewable projects, financial analysis, and expert interviews were used in this research. The pilot evaluation determined that, the local economic effect was high in the following order: a fund investment wind project (Gangwon), benefit-sharing wind project (Jeju), and general wind project. In particular, residents' investment amount, the number of participating residents, and the amount and transparency of the regional cooperation fund were key factors to expand the effect of local economy activation. This evaluation index could be used in public bidding for renewable energy projects such as offshore wind zoning areas of local government.

Keywords

Acknowledgement

본 연구는 대통령직속 소득주도성장특별위원회 지원 연구의 일환으로 수행되었습니다.

References

  1. MOTIE, 2017, "Implementation plan for renewable energy 3020(2017.12.)", http://www.motie.go.kr/motiee/presse/press2/bbs/bbsView.do?bbs_seq_n=159996&bbs_cd_n=81.
  2. MOTIE, 2020, "Renewable energy national shareholder project support start", Press Release, http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_cd_n=81&cate_n=1&bbs_seq_n=163280.
  3. Korea Government, 2020, "K-New Deal comprehensive plan(2020.07.)", https://www.korea.kr/news/pressReleaseView.do?newsId=156401053.
  4. World Bank, 2019, "Improving the investment climate for renewable energy through benefit sharing, risk management, and local community engagement", World Bank Group, Washington, DC, http://hdl.handle.net/10986/32748.
  5. Ernst & Young, 2014, "Strategic options for delivering ownership and benefit sharing models for wind farms in NSW", NSW Office of Environment and Heritage, https://www.environment.nsw.gov.au/resources/communities/EY-wind-farm-shared-benefits.pdf.
  6. Rudolph, D.P., Haggett, C., and Aitken, M., 2014, "Community benefits from offshore renewables: Good practice review", University of Edinburgh, https://www.climatexchange.org.uk/media/1536/full_report_-_community_benefits_from_offshore_renewables_-_good_practice_review.pdf.
  7. Action Renewables et al., 2015, "Communities and renewable energy", UK Government, https://www.economy-ni.gov.uk/sites/default/files/publications/deti/Communities%20and%20Renewable%20Energy%20-%20A%20Study_0.pdf.
  8. Lane, T. and Hicks, J., 2017, "Community engagement and benefit sharing in renewable energy development: A guide for applicants to the Victorian renewable energy target auction", Department of Environment, Land, Water and Planning, Victorian Government, Melbourne, https://www.energy.vic.gov.au/__data/assets/pdf_file/0027/91377/Community-Engagement-and-Benefit-Sharing-in-Renewable-Energy-Development.pdf.
  9. Rebel Group, 2009, "Benefit sharing mechanisms in renewable energy", RESHARE.
  10. Kim, Y., Im, H., Yun, S., and Yoon, T., 2021, "The impact of the community investment renewable development project on the local economy: In the aspects of residential income, and local company revenue", New. Renew. Energy, 17(1), 61-75. https://doi.org/10.7849/ksnre.2021.2030
  11. Allan, G., McGregor, P., and Swales, K., 2011, "The importance of revenue sharing for the local economic impacts of a renewable energy project: A social accounting matrix approach", Regional Studies, 45(9), 1171-1186. https://doi.org/10.1080/00343404.2010.497132
  12. Jung, S., and Lee, S., 2018, "Research on building a benefit sharing system to improve the renewable energy acceptance", Korea Energy Economics Institute.
  13. Lee, K., and Yun, S., 2018, "Positive effects and problematic conditions of adopting the benefit sharing mechanism in renewable energy projects: Focusing on the case of onshore wind farms in Jeju Island", Space and Environment, 28(3), 227-270. https://doi.org/10.19097/KASER.2018.28.3.227
  14. Lantz, E., 2008, "Economic development benefits from wind power in Nebraska: a report for the nebraska energy office", US Department of Energy Publications, 24.
  15. Sastresa, E. L., Uson, A. A., Bribian, I. Z., and Scarpellini, S., 2010, "Local impact of renewables on employment: assessment methodology and case study", Renew. Sustain. Energy Rev., 14(2), 679-690. https://doi.org/10.1016/j.rser.2009.10.017
  16. Henriques, C.O., Coelho, D.H., and Cassidy, N.L., 2016, "Employment impact assessment of renewable energy targets for electricity generation by 2020-An IO LCA approach", Sustain. Cities Soc., 26, 519-530. https://doi.org/10.1016/j.scs.2016.05.013
  17. Kahouli, S., and Martin, J.C., 2018, "Can offshore wind energy be a lever for job creation in France? Some insights from a local case study", Environ. Model. Assess., 23(3), 203-227. https://doi.org/10.1007/s10666-017-9580-4
  18. Lim, S., Park, S., and Yoo, S., 2014, "The economic effects of the new and renewable energies sector", J. Energy Eng., 23(4), 31-40. https://doi.org/10.5855/ENERGY.2014.23.4.031
  19. Kang, J., Lee, J., and Park, J., 2017, "A Comparative analysis on the economic effects between new and renewable- and thermal-power generation in Korea", J. Energy Eng., 26(3), 51-63. https://doi.org/10.5855/ENERGY.2017.26.3.051
  20. Kim, G., and Seo, Y., 2019, "Analysis of the ripple effect of the expansion of renewable energy in the national economy (1/4)", Korea Energy Economics Institute.
  21. Jenniches, S., 2018, "Assessing the regional economic impacts of renewable energy sources-A literature review", Renew. Sustain. Energy Rev., 93, 35-51. https://doi.org/10.1016/j.rser.2018.05.008
  22. Ko, J., Park, H., and Ye, M., 2018, "Development of local government evaluation model to achieve energy vision 2030 of Gyeonggi-do", Policy Research 2018-45, Gyeonggi Research Institute.
  23. Jeju Ordinance on Wind Power Project Permit and District Designation, 2017, https://www.law.go.kr/LSW/ordinInfoP.do?ordinSeq=1280538.
  24. Sinan-un Ordinance on New and Renewable Energy Development Benefit Sharing, 2021, https://www.law.go.kr/LSW/ordinInfoP.do?ordinSeq=1582655&gubun=ELIS.
  25. Haenam-gun Ordinance on support and promotion of New and Renewable Energy Power Generation Projects, 2015, https://www.law.go.kr/LSW/ordinInfoP.do?ordinSeq=1038851&gubun=ELIS.
  26. Jeollanam-do Ordinance on Renewable Energy Industry Promotion and Citizens Participation, 2020, https://www.law.go.kr/LSW/ordinInfoP.do?ordinSeq=1485035&gubun=ELIS.
  27. U.S. Department of Energy Office of Minority Business & Economic Development, 2017, "Guide to advancing opportunities for community benefits through energy project development", https://www.energy.gov/sites/prod/files/2017/09/f36/CBA%20Resource%20Guide.pdf.
  28. Scottish Government, 2019, "Scottish government good practice principles for community benefits from onshore renewable energy developments", https://www.gov.scot/publications/scottish-government-good-practice-principles-community-benefits-onshore-renewable-energy-developments/.
  29. UK Department of Energy & Climate Change, 2014, "Community benefits from onshore wind developments: Best practice guidance for England", https://www.gov.uk/government/publications/community-benefits-andengagement-guidance-for-onshore-wind.
  30. Denmark Government, 2009, "Promotion of renewable energy act", https://ens.dk/sites/ens.dk/files/Vindenergi/promotion_of_renewable_energy_act_-_extract.pdf.
  31. UK Department of Energy & Climate Change, 2015, "Government response to the shared ownership taskforce", https://www.gov.uk/government/publications/government-response-to-the-shared-ownership-taskforce.
  32. Clean Energy Wire, 2021, "First mandatory resident participation option for German wind farm as auction problems continue", https://www.cleanenergywire.org/news/first-mandatory-resident-participation-option-german-wind-farm-auction-problems-continue?pk_campaign=daily_newsletter_2021-01-20&pk_keyword=firstmandatory-resident-participation-option-german-wind-farm-auction-problems-continue&pk_source=newsletter&pk_medium=email&pk_content=title.
  33. Saemangeum Development Corporation, 2019, "Saemangeum onshore solar power plant zone 1 power generation project contest guidelines", https://sdco.or.kr/portal/kor/bbs/view.do?menuId=M0030030001&boardSeq=325.
  34. Saemangeum Development Corporation, 2020, "Saemangeum onshore solar power plant zone 3 power generation project contest guidelines", https://sdco.or.kr/portal/kor/bbs/view.do?menuId=M0030030001&boardSeq=753.
  35. Gunsan-si, 2019, "Request for proposal for selecting a power generation company of "Saemangeum onshore solar power plant zone 2 power generation project".
  36. Japan Ministry of Economy, Trade and Industry, Agency for Natural Resources and Energy Port Bureau, and Ministry of Land, Infrastructure, Transport and Tourism, Transport and Tourism Port Bureau, 2019, "Operational guidelines for the private recruitment system in general sea areas", https://www.mlit.go.jp/common/001292755.pdf.
  37. IRENA, 2019, "Renewable energy auctions: Status and trends beyond price", International Renewable Energy Agency, Abu Dhabi, https://www.irena.org/publications/2019/Dec/Renewable-energy-auctions-Status-and-trends-beyond-price.
  38. Jones Day, 2018, "Taiwan offshore wind farm projects: Guiding investors through the legal and regulatory framework", White Paper, https://www.jonesday.com/en/insights/2018/02/taiwan-offshore-wind-farm-projects-guiding-investo.
  39. Korean Government, 2020, "Offshore wind power development plan that works with residents and coexists with the fishery industry, 2020, https://www.mof.go.kr/iframe/article/view.do?articleKey=34881&boardKey=10&menuKey=376¤tPageNo=1.
  40. Ko, T., and Lim, J., 2013, "Plans to increase the income of local residents from establishment of wind farms", Jeju Development Institute, https://www.jri.re.kr/contents/index.php?mid=0401&job=detail&seq=1186&gubun=2.
  41. Jeju Ordinance on the fund to share the wind resource in Jeju Special Self-Governing Province, 2016, https://www.law.go.kr/ordinInfoP.do?ordinSeq=1242085.
  42. IRENA, 2015, "Renewable energy auctions a guide to design", International Renewable Energy Agency, Abu Dhabi, https://www.irena.org/publications/2015/Jun/Renewable-Energy-Auctions-A-Guide-to-Design.