• Proceedings of the KIEE Conference
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• 2005.07a
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• pp.745-747
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• 2005

After restructuring electricity industry, national long term electricity plans moved to "Basic plan of electricity supply and demand" from "Long term power development plan". The main point is a change of path from plan of power development at national level to plan of electricity supply and demand at company level. A proposal by generation company is surveyed and reflected to the basic plan of electricity supply and demand. The second plan shows over 40% reserves in result of the proposals. It is the time to evaluating the proposal which covers market function in the basic plan of electricity supply and demand at the stage of market change. This research presents the need of evaluation of proposals and the methods of evaluation. Also it presents the alternative planning procedure to reflecting the evaluation methods.

• Proceedings of the KIEE Conference
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• 2006.07a
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• pp.418-419
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• 2006

After electricity power industry restructuring, "Long term power development plan", setting up by government, is replaced by "Basic plan of electricity supply and demand". In this basic plan, one of the most important factors is assessment of appropriate capacity margin. The benefit of GENCO is decided by the market price, and the price is largely affected by the level of reserve margin. As a consequence, appropriate reserve margin is determined by market power. However, Cost Based Pool(CBP) is a limited competitive market, and government policy for supply and demand is very important factor or reserve margin determination. This paper points out issues about existing reserve margin assessment method which is used in basic plan and suggests improved assessment method. In the case study, capacity margin is calculated by proposed assessment method and result shows the advantages of suggested method.

• Journal of Energy Engineering
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• v.16 no.1 s.49
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• pp.22-31
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• 2007

This paper addresses methodology in order to consider CHP (Combined Heat and Power) capacity in the Basic Plan of Long Term Electricity Supply & Demand and presents effects on it. The method performs state in extent that do not change maximum in the Basic Plan of Long Term Electricity Supply & Demand. For analysis that occurs some advantage this method compares with Basic Plan of Long Term Electricity Supply & Demand. It includes EES (Expected Energy Served), Fuel consumption, amount of $CO_{2}$ emission reduction.

• Journal of Korea Planning Association
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• v.53 no.7
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• pp.67-86
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• 2018

This paper attempted to analyze impacts of transition in electricity generation system on a national economy and environmental level in Korea using a recursive computable general equilibrium(CGE) model. In particular, the paper presented a hybrid model combining the top-down CGE model with the bottom-up model which describes the structure of electricity production in detail. The impacts were analyzed by two policy scenarios base on the basic plan for electricity supply and demand proposed by the Korean government. As a result, the paper specifically showed that there exists a trade-off relationship in the policy-making between economic efficiency and environmental level. The paper also suggested that the transition in electricity generation system should be done more gradually and carefully.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.67 no.1
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• pp.16-21
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• 2018

As a result of the Fukushima disaster and climate change due to excessive greenhouse gases, international energy affairs are currently focused on establishing safe and environment-friendly policies. To achieve this, Republic of Korea has established a plan for environment-friendly energy supplies. It is expected that policy enforcement will be accompanied by an increase in energy supply costs. An analysis of energy supply costs is necessary before the establishment of any national energy policy. This paper analyzes and compares the energy supply costs accompanying environmental and nuclear energy policies, based on the Korean National Energy Master Plan and the Basic Plan for Long-Term Electricity Supply and Demand, in order to understand the implications of these national energy policies.

• Environmental and Resource Economics Review
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• v.28 no.1
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• pp.147-176
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• 2019

This paper uses research on the Levelized Cost of Electricity (LCOE) in South Korea to conduct a simulation analysis on the impact of nuclear power dependency and usage rates on the social costs of power generation. We compare the $7^{th}$ basic plan for long-term electricity supply and demand, which was designed to increase nuclear power generation, to the $8^{th}$ basic plan for long-term electricity supply and demand that decreased nuclear power generation and increased renewable energy generation in order to estimate changes in social costs and electricity rates according to the power generation mix. Our environmental generation mix simulation results indicate that social costs may increase by 22% within 10 years while direct generation cost and electricity rates based on generation and other production costs may increase by as much as 22% and 18%, respectively. Thus we confirm that the power generation mix from the $8^{th}$ basic plan for long-term electricity supply and demand compared to the $7^{th}$ plan increases social costs of generation, which include environmental external costs.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.583-615
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• 2014

Including the rolling black out in 2011, Korea has suffered from rapid increase of electricity consumption and demand forecasting failure for last five years. In addition, because of the Fukushima disaster, high fuel prices, and introduction of new generation sources such as renewables, the uncertainty on a power supply strategy increases. Consequently, a stable power supply becomes the new agenda and a revisino of strategy for new power generation sources is needed. In the light of this, we appraises the sixth basic plan for long term electricity demand and supply considering the changes of foreign and domestic conditions. We also simulate a strategy for the new power generation sources using a portfolio analysis method. As results, a diversity of power generation sources will increase and the share of renewable power generation will be surged on the assumptions of a cost reduction of renewable power sources and an increase of fuel costs. Particularly, on the range of a risk level(standard deviation) from 0.06 and 0.09, the efficient frontier has the most various power sources. Besides, the existing power plan is not efficient so that an improvement is needed. Lastly, the development of an electricity storage system and energy management system is necessary to make a stable and efficient power supply condition.

• Journal of Energy Engineering
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• v.18 no.2
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• pp.114-124
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• 2009

The Ministry of Knowledge and Economy (MKE) establishes the Basic Plan for Long-Term Electricity Supply and Demand(BPE) biannually, a governmental plan for the stable electricity supply. This study investigated the effects of the electric demand forecast on the energy mix. A simplified simulation model was developed, which replaces the WASP program developed by the KPX and verified by comparing both results. Three different electric demand scenarios were devised based upon the 2005 electric demand forecast: Proper, 5 % higher, and 5% lower. The simplified model calculates the energy mix for each scenario of the year 2005. Then it calculates the energy mix for the proper electric demand forecast of the year 2007 using the energy mixes of the three scenarios as the initial conditions, so that it reveals the effect of electric demand forecast of the previous BPE on the energy mix of the next BPE. As the proper electric demand forecasts of the year 2005 and 2007 are the same, there is no change in the previous and the next BPEs. However when the electric demand forecasts were 5% higher in the previous BPE and proper in the next BPE, some of the planned power plant construction in the previous BPE had to be canceled. Similarly, when the electric demand forecasts were 5% lower in the previous BPE and proper in the next BPE, power plant construction should be urgently increased to meet the increased electric demand. As expected the LNG power plants were affected as their construction periods are shorter than coal fired or nuclear power plants. This study concludes that the electric demand forecast is very important and that it has the risk of long term energy mix.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.63 no.4
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• pp.455-460
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• 2014

South Korea's power consumption is increasing every year. For stable electric power supply, more generation facilities are needed. But it is not easy to build nuclear power generation facilities, so provision of renewable energy is thought of as the solution. For the system's stable management, practical use of energy storing system is needed. Currently, pumping up electric power station is considered most useful. In this study, we have calculated the least amount of energy storing device by considering the renewable energy, HVDC, and change in power for the appliance of ESS in Jeju system, according to The 6th Basic Plan for Long-term Electricity Supply and Demand. Also we have calculated the amount of the battery and about the load equalizing effect to use battery as power storing device. Finally, we have calculated the reduction of electricity generation and the reduction of $CO_2$ emission with this study.

• KDI Journal of Economic Policy
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• v.34 no.2
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• pp.55-93
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• 2012

In Korea, energy policies are actualized through various energy-related plans. Recently, however, as high-ranking plans, which are very vision-oriented, continually set higher sector-by-sector goals, subordinate action plans, which require consistency, encounter distortions in their establishment process. Also, each subordinate action plan reveals limitations in terms of securing flexibility of the plan in responding to uncertainties of the future. These problems pose potential risks such as causing huge social costs. In this regard, with an aim to provide empirical evidence for discussions on improving the procedure for developing and executing Korea's energy plans, this study mainly analyzes the Basic Plan on Electricity Demand and Supply-one of the most important subordinate action plans-in order to explain the problems of the Basic Plan in a logical manner, and potential problems that could occur in the process of sustaining consistency between the Basic Plan and its higher-ranking plans. Further, this paper estimates the scale of social costs caused by those problems assuming realistic conditions. According to the result, in the case of where maximum electric power is estimated to be 7% (15%) less than the actual amount in the Basic Plan on Electricity Demand and Supply, the annual generation cost will rise by 286 billion won and (1.2 trillion won) in 2020. Such social costs are found to occur even when establishing and executing the Basic plan according to the target goal set by its higher-ranking plan, the National Energy Master Plan. In addition, when another higher-ranking GHG reduction master plan requires the electricity sector to reduce emissions by additional 5% in the GHG emissions from the right mix in electricity generation with 'zero' cost of carbon emission, the annual generation cost will rise by approximately 915 billion won in 2020. On the other hand, the analysis finds that since economic feasibility of electric powers in Korea varies significantly depending on their type, Korea is expected to face very small potential social costs caused by uncertainties over the future price of carbon dioxide in the process of establishing the Basic Plan.