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http://dx.doi.org/10.21218/CPR.2021.9.2.059

A Study on the Economic and Social Benefits of the Microgrid Business Model in Island Areas : Consumer's Community Solar Participation in Development  

Lee, SangHee (Energy Environment Policy and Technology, The Graduate School of Energy and Environment (Green School), Korea University (KU))
Lee, Hae-Seok (Energy Environment Policy and Technology, The Graduate School of Energy and Environment (Green School), Korea University (KU))
Kim, Kyung Nam (Energy Environment Policy and Technology, The Graduate School of Energy and Environment (Green School), Korea University (KU))
Publication Information
Current Photovoltaic Research / v.9, no.2, 2021 , pp. 59-73 More about this Journal
Abstract
The purpose of this study is to develop a business model that efficiently converts diesel power generation systems to renewable energy microgrids (MG) in large-scale islands. Most of the previous studies on the conversion of renewable energy MG in islands had limitations dealing with efficiency from the perspective of suppliers. However, the microgrid has the characteristic of getting benefits through the interaction between the consumer and the supplier. In addition, the efficient MG business model from the perspective of new institutional economics is a structure in which consumers and suppliers jointly participate. Therefore, this study assumed that the MG business model in which the supplier's MG and the consumer's community solar participated would benefit all participants, and verified the assumptions using domestic island data. In terms of supplier investment, the cost of power supply (LCOE) of assumed model was calculated to be 14.0% lower than that of the diesel model and 3.7% lower than that of the supplier-only MG model. From the perspective of consumer investment, electricity bills are expected to be reduced by more than 200,000 won per household per year through self-generation of solar power. Social benefits are expected to reduce external environmental costs. The CO2 emissions of the assumed model were calculated to be 39.5% lower than the diesel model and 1.5% lower than the supplier-only MG model. Therefore, the MG business model with consumer participation proposed in this study is expected to be an efficient alternative to renewable energy MG conversion in domestic islands, and is meaningful as an energy plan that improves the benefits of local residents.
Keywords
Microgrid business model; Community solar; Interaction; Participatory development; CBA;
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