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http://dx.doi.org/10.17661/jkiiect.2022.15.2.178

Cost Estimation Model for Introduction to Virtual Power Plants in Korea  

Park, Hye-Yeon (Department of Next Generation Smart Energy System, Gachon University)
Park, Sang-Yoon (Department of Electronic Engineering, Gachon University)
Son, Sung-Yong (Department of Electronic Engineering, Gachon University)
Publication Information
The Journal of Korea Institute of Information, Electronics, and Communication Technology / v.15, no.2, 2022 , pp. 178-188 More about this Journal
Abstract
The introduction of virtual power plants is actively being discussed to solve the problem of grid acceptability caused by the spread of distributed renewable energy, which is the key to achieving carbon neutrality. However, a new business such as virtual power plants is difficult to secure economic feasibility at the initial stage of introduction because it is common that there is no compensation mechanism. Therefore, appropriate support including subsidy is required at the early stage. But, it is generally difficult to obtain the cost model to determine the subsidy level because of the lack of enough data for the new business model. In this study, a survey of domestic experts on the requirements, appropriate scale, and cost required for the introduction of virtual power plants is conducted. First, resource composition scenarios are designed from the survey results to consider the impact of the resource composition on the cost. Then, the cost estimation model is obtained using the individual cost estimation data for their resource compositions using logistic regression analysis. In the case study, appropriate initial subsidy levels are analyzed and compared for the virtual power plants on the scale of 20-500MW. The results show that mid-to-large resource composition cases show 29-51% lower cost than small-to-large resource composition cases.
Keywords
Construction Cost; Distributed Energy Resources; Logistic regression model; Survey; Virtual Power Plant;
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