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http://dx.doi.org/10.5855/ENERGY.2015.24.3.067

Measuring the benefits from integrated energy business-based combined heat and power plant as a decentralized generation source with a focus on avoiding the damages caused by large-scale transmission facilities  

Kim, Hyo-Jin (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Choi, Hyo-Yeon (Department of Economics, Korea University)
Yoo, Seung-Hoon (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Publication Information
Journal of Energy Engineering / v.24, no.3, 2015 , pp. 67-73 More about this Journal
Abstract
Almost base-loaded power plants such as flaming coal and nuclear energy require large-scale transmission facilities (LTFs) in order to send electricity to remote consumption areas. As well known, LTFs incur various social costs. However, a decentralized generation source such as integrated energy business (IEB)-based combined heat and power (CHP) plant is located in nearby electricity-consuming area, and thus it does not demand LTFs, providing the benefits from avoiding the damages caused by them. This study attempts to measure the benefits of avoiding the damages from the LTFs by the use of the contingent valuation (CV) method. To this end, a national survey of randomly chosen 1,000 households was implemented and the public's willingness to pay (WTP) for substituting consumption of electricity generated from flaming coal-fired power plant, currently a dominant generation source in Korea, with that produced from IEB-based CHP plant. The results show that the WTP for the substitution is estimated to be about 41.4 won per kWh. Considering that this value amounts to 33% of the average price of residential electricity in 2014, the external benefit of the IEB-based CHP as a decentralized generation appears to be large.
Keywords
flaming coal-fired power generation; integrated energy business; combined heat and power generation; damages caused by transmission facilities; benefits of avoidance; contingent valuation method;
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Times Cited By KSCI : 2  (Citation Analysis)
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