• Transactions on Electrical and Electronic Materials
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• v.18 no.6
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• pp.350-358
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• 2017

Recently, owing to increased interest in low-carbon energy supplies, renewable energy sources such as photovoltaics and wind turbines in distribution networks have received considerable attention for generating clean and unlimited energy. The presence of energy storage systems (ESSs) in the promising field of active distribution networks (ADNs) would have direct impact on power system problems such as encountered in probabilistic distributed generation (DG) model studies. Hence, the optimal procedure is offered herein, in which the simultaneous placement of an ESS, photovoltaic-based DG, and wind turbine-based DG in an ADN is taken into account. The main goal of this paper is to maximize the net present value of the loss reduction benefit by considering the price of electricity for each load state. The proposed framework consists of a scenario tree method for covering the existing uncertainties in the distribution network's load demand as well as DG. The collected results verify the considerable effect of concurrent installation of probabilistic DG models and an ESS in defining the optimum site of DG and the ESS and they demonstrate that the optimum operation of an ESS in the ADN is consequently related to the highest value of the loss reduction benefit in long-term planning as well. The results obtained are encouraging.

• Industrial Engineering and Management Systems
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• v.9 no.2
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• pp.107-120
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• 2010

In today's uncertain economic environment, the evaluation of safety for investment alternatives is of practical importance in manufacturing companies. This paper examines a method of quantitatively evaluating profitability and risk for multiple alternatives using the total-cost unit-cost domain. The paper assumes such factors as unit sales price, sales and production volume, unit variable cost, fixed cost, and yield for each alternative. The paper incorporates the relationship between production capacity and demand, distinguishing between cases of production capacity surplus and shortage for each year over the entire planning horizon. The paper investigates the case in which the values of each factor independently move in the direction of decreasing profit each year, and clarifies the procedure of comparing safety among multiple investment alternatives on a single consolidated total-cost unit-cost domain. The difficulty of the problem lies in the method of consolidating multiple total-cost unit-cost domains into a single domain since the combination of years of capacity surplus and shortage depends upon the change values in each factor under consideration. A systematic method of evaluating profitability as well as risk is presented, and the validity of the proposed method is verified using a numerical example.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.386-389
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• 2013

Under climate change and urbanization, rainwater harvesting (RWH) systems are emerging as an alternative source of water supply because of growing concern about water sustainability. RWH systems can satisfy the various watering needs and provide the environmental benefits of lessening the damages from flood, drought, and runoff. The economic success of a RWH system is vitally concerned with the determination of the design capacity of storage tank to be built in the system. The design capacity is determined by the factors of average annual rainfall, period of water scarcity, and water price during the whole life-cycles. Despite the high uncertainties inherent in these factors, the current engineering design of RWH system construction often assumes that storage tanks should be built all at once. This assumption implicitly ignores the managerial flexibility in responds to the future as new information comes out-the right to build storage tanks stage by stage depending on the evolution of demand. This study evaluates the value of a multistage storage tank construction using a real option approach. A case study involving a typical RWH system construction in Jeonju, the Republic of Korea is conducted. The managerial flexibility obtained from the real option perspective allows engineers to develop investment strategies to better cope with the issue of water sustainability.

• 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.

• Land and Housing Review
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• v.12 no.2
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• pp.33-45
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• 2021

Due to recent changes in government policy, officetels have received attention as alternative assets, along with the uplift of office and apartment prices in Seoul. However, the current officetel price indexes use small-size samples and, thus, there is a critique on their accuracy. They rely on valuation prices which lag the market trend and do not properly reflect the volatile nature of the property market, resulting in 'smoothing'. Therefore, the purpose of this paper is to create the officetel price index using transaction data. The data, provided by the Ministry of Land, Infrastructure and Transport from 2005 to 2020, includes sales prices and rental prices - Jeonsei and monthly rent (and their combinations). This study employed a repeat sales model for sales, jeonsei, and monthly rent indexes. It also contributes to improving conversion rates (between deposit and monthly rent) as a supplementary indicator. The main findings are as follows. First, the officetel price index and jeonsei index reached 132.5P and 163.9P, respectively, in Q4 2020 (1Q 2011=100.0P). However, the rent index was approximately below 100.0. Sales prices and jeonsei continued to rise due to high demand while monthly rent was largely unchanged due to vacancy risk. Second, the increase in the officetel sales price was lower than other housing types such as apartments and villas. Third, the employed approach has seen a potential to produce more reliable officetel price indexes reflecting high volatility compared to those indexes produced by other institutions, contributing to resolving 'smoothing'. As seen in the application in Seoul, this approach can enhance accuracy and, therefore, better assist market players to understand the market trend, which is much valuable under great uncertainties such as COVID-19 environments.