Browse > Article
http://dx.doi.org/10.7849/ksnre.2022.0016

Analysis of Factors Driving the Participation of Small Scale Renewable Power Providers in the Power Brokerage Market  

Li, Dmitriy (Department of Economics, Chonnam National University)
Bae, Jeong Hwan (Department of Economics, Chonnam National University)
Publication Information
New & Renewable Energy / v.18, no.3, 2022 , pp. 32-42 More about this Journal
Abstract
Rapid spread of intermittent renewable energy has amplified the instability and uncertainty of power systems. The Korea Power Exchange (KPX) promoted efficient management by opening the power brokerage market in 2019. By combining small-scale intermittent renewable energy with a flexible facility through the power brokerage market, the KPX aims to develop a virtual power plant system that will allow the conversion of existing intermittent renewable energy into collective power plants. However, the participation rate of renewable power owners in the power brokerage market is relatively low because other markets such as the small solar power contract market or the Korea Electric Power Corporation power purchase agreement are more profitable. In this study, we used a choice experiment to determine the attributes affecting the participation rate in the power brokerage market for 113 renewable power owners and estimate the value of the power brokerage market. According to the estimation results, a low smart meter installation cost, low profit variations, long contract periods, and few clearances increased the probability of participation. Moreover, the average value of the power brokerage market was estimated to be 2.63 million KRW per power owner.
Keywords
Small-scale intermittent renewable energy; Power brokerage market; Choice experiment; Willingness to pay(WTP);
Citations & Related Records
연도 인용수 순위
  • Reference
1 Energypedia, "Flexibility (Power system)", Accessed 15 March 2022, https://energypedia.info/wiki/Flexibility_(Power_System).
2 Hensher, D.A., Rose, J.M., and Greene, W.H., 2015, "Applied choice analysis 2nd ed.", Cambridge University Press, Cambridge.
3 Min, I.S., and Choi, P.S., 2012, "Advanced panel data analysis for STATA", Jipilsa, Paju.
4 Seong, J.Y., and Kim, S.J., 2019, "Future development of small scale power brokerage market", WooRi Finance Research Institute, https://signal.sedaily.com/Common/FileDownload?fileName=%EC%86%8C%EA%B7%9C%EB%AA%A8_%EC%A0%84%EB%A0%A5%EC%A4%91%EA%B0%9C%EC%8B%9C%EC%9E%A5%EC%9D%98_%ED%96%A5%ED%9B%84_%EB%B0%9C%EC%A0%84%EB%B0%A9%ED%96%A5.pdf&fullPath=/Service/Branch/Signal/Report/2019/04/08/%EC%86%8C%EA%B7%9C%EB%AA%A8_%EC%A0%84%EB%A0%A5%EC%A4%91%EA%B0%9C%EC%8B%9C%EC%9E%A5%EC%9D%98_%ED%96%A5%ED%9B%84_%EB%B0%9C%EC%A0%84%EB%B0%A9%ED%96%A5.pdf.
5 Holmes, T.P., and Adamowicz, W.L., 2003, "AttributeBased methods", In: A Primer on Nonmarket Valuation. Champ, Patricia A.; Boyle, K. J. Brown, Thomas C. (eds), Kluwer Academic Publishers, Dordrecht, pp. 171-219.
6 KPX(Korea Power Exchange), 2020, "A Study on the Optimal Incentive Design for Flexibility of Small-Scale Distributed Resources", Internal Basic Study.
7 Ahn, J.G., and Kim, N.I., 2019, "A study on the revitalization of supply-type VPP: Using the small-scale power brokerage market", Primary Report of Korea Energy Economics Institute, http://www.keei.re.kr/web_keei/d_results.nsf/0/1495A86A688EAA9D4925853E00187DD1/$file/%EA%B8%B0%EB%B3%B8%2019-15_%EA%B3%B5%EA%B8%89%ED%98%95%%EA%B0%80%EC%83%81%EB%B0%9C%EC%A0%84%EC%86%8C(VPP)%%ED%99%9C%EC%84%B1%ED%99%94%%EB%B0%A9%EC%95%88%%EC%97%B0%EA%B5%AC_%EC%86%8C%EA%B7%9C%EB%AA%A8%EC%A0%84%EB%A0%A5%EC%A4%91%EA%B0%9C%EC%8B%9C%EC%9E%A5%%ED%99%9C%EC%9A%A9%EC%9D%84%%EC%A4%91%EC%8B%AC%EC%9C%BC%EB%A1%9C.pdf.
8 Kublia, M., Loock, M., and Wustenhagen, R., 2018, "The flexible prosumer: Measuring the willingness to co-create distributed flexibility", Energy Policy, 114, 540-548.   DOI
9 Bae, J.H., 2018, "An analysis of consumer preference on the introduction of green electricity purchasing system in distributed areas", Korea Energy Economic Review, 17(1), 287-316.   DOI
10 Kim, Y.H., 2018, "Citizens' participation in the promotion of small scale distributed resources", Association Policy Forum for the Creation of Green Electricity Market for Citizen Participation, https://www.enet.or.kr/?module=file&act=procFileDownload&file_srl=59003&sid=ecf0235cb3b741037ac9dddfb2bc4d3c&module_srl=148.
11 Bae, J.H., and Rishi, M., 2018, "Increasing consumer participation rates for green pricing programs: A choice experiment for South Korea", Energy Economics, 74, 490-502.   DOI
12 Hensher, D.A., Rose, J.M., and Greene, W.H., 2005, "Applied choice analysis: A primer", Cambridge University Press, Cambridge.
13 Train, K.E., 2009, "Discrete choice methods with simulation", Cambridge University Press, Cambridge.
14 EPSIS (Electric Power Statistics Information System), 2022, "Annual statistics of power generation by power sources", Accessed 15th May 2022, http://epsis.kpx.or.kr/epsisnew/selectEkgeGepTotChart.do?menuId=060101.
15 Korean Government, 2020, "2050 Carbon neutral strategy in South Korea".
16 MOTIE (Ministry of Trade, Industry and Energy), 2020, "9th Basic plan for electricity supply and demand (2020~2034)" Public Announcement [2020-741].