• Korean System Dynamics Review
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• v.3 no.1
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• pp.43-60
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• 2002

This paper describes the forecast of wholesale price in competitive Korean electricity market using the system dynamics approach. The system dynamics concepts have been implemented with the Ithink software. This software facilitates the development of stock and flow model with information feedback. Using this model, the future wholesale electricity price can be computed hour by hour, quarterly, and yearly. This model also gives the energy planner the opportunity to create different scenarios for the future of deregulated wholesale markets in Korea. Also It will lead to increased understanding of competitive wholesale market as a complex, dynamic system. Research results show that the plant construction appeared in waves of boom and bust in Korean electricity market like real estate construction. That is, the Korea wholesale market's new power plants and the market price will appear the Boom and Bust cycle. It is very similar behavior as real estate industry. In case of consideration of DSM program, The DSM savings lead to a somewhat different timing of the booms in construction and of price spikes. But the DSM programs do not eliminated the fundamental dynamics of the boom and bust. And the wholesale price is maintained at the lower level compared to the case of without DSM program. However, the unexpected result is found that due to the lower market price, Investor make significantly less investment in new CCs, which leads to the higher wholesale price after 2010. It suggests that the DSM Policy must be implemented with the dynamics of competitive Electricity Market.

• Environmental and Resource Economics Review
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• v.25 no.1
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• pp.113-140
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• 2016

Achieving the two goals of providing stable remuneration and promoting market based incentive for generation capacity with only one kind of capacity price is a difficult proposition. This paper suggests a market design in which two different kinds of capacity prices are used to achieve these goals. It maintains the current capacity price that is determined administratively based on the fixed cost of the gas-turbine generator. A second capacity price is added that covers generators with higher fixed costs and lower fuel costs such as combined-cycle gas turbine, coal-powered, and nuclear generators. This second capacity price is conditional on a lower energy price ceiling and determined by the interaction of the market supply and a demand schedule derived from the optimal fuel mixed principle.

• Environmental and Resource Economics Review
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• v.31 no.4
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• pp.645-668
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• 2022

Hydrogen energy is emerging as an important means of carbon neutrality in the various sectors including power, transportation, storage, and industrial processes. Fuel cell power plants are the fastest spreading in the hydrogen ecosystem and are one of the key power sources among means of implementing carbon neutrality in 2050. However, high volatility in system marginal price (SMP) and renewable energy certificate (REC) prices, which affect the profits of fuel cell power plants, delay the investment timing and deployment. This study applied the real option methodology to analyze how the dual uncertainties in both SMP and REC prices affect the investment trigger price level in the irreversible investment decision of fuel cell power plants. The analysis is summarized into the following three. First, under the current Renewable Portfolio Standard (RPS), dual price uncertainties passed on to plant owners has significantly increased the investment trigger price relative to one under the deterministic price case. Second, reducing the volatility of REC price by half of the current level caused a significant drop in investment trigger prices and its investment trigger price is similar to one caused by offering one additional REC multiplier. Third, investment trigger price based on gray hydrogen and green hydrogen were analyzed along with the existing byproduct hydrogen-based fuel cells, and in the case of gray hydrogen, economic feasibility were narrowed significantly with green hydrogen when carbon costs were applied. The results of this study suggest that the current RPS system works as an obstacle to the deployment of fuel cell power plants, and policy that provides more stable revenue to plants is needed to build a more cost-effective and stable hydrogen ecosystem.

• Proceedings of the Korean Geotechical Society Conference
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• 2010.09a
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• pp.504-511
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• 2010

After facing the fact such as fossil-fuel depletion, global warming, the Kyoto Protocol coming into force of mandatory reductions of carbon dioxide, the world is actively promoting the spread of the solar, wind, tidal, geothermal and other clean renewable energy technology development. Among them, wind power is the only alternative energy to secure a comparable price competition with fossil fuels because cheaper price power generation than other renewable energy when creating large-scale wind farm, thus wind power is the fastest growing industries in the world in the renewable energy field. Especially the offshore wind power is showing rapid growth as most of the wind power sector because of less changes of wind speed, no restrictions of land use, and large-scale development of offshore wind power. In this paper, the field of site selection and spatial location analysis techniques for development of large-scale offshore wind farm are discussed primarily. This paper shows overview of offshore wind power and establishment procedure for development of offshore wind farm.

• Environmental and Resource Economics Review
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• v.25 no.2
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• pp.179-197
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• 2016

The development of overseas resource is a driving force to secure the energy security in Korea with low sufficiency rate of energy. This paper analyzes the effect of overseas oil resource development on the economy by presenting a real business cycle model with consolidated energy price index. A linear-quadratic dynamic programming is adopted to raise computational transparency and efficiency. The analysis shows that the overseas oil resource development project during 2010 and 2012 decreases the energy price by 1.2% per annum which effect is equivalent to the positive 0.47% to the GDP. The implication calls for steady and robust support for overseas resource development projects to enhance energy resilience.

• Korean Journal of Air-Conditioning and Refrigeration Engineering
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• v.20 no.11
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• pp.746-751
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• 2008

The best plan to reduce the building energy consumption is that the insulation performance should be improved because the insulation and airtight of building envelopes have an effect on the energy consumption basically. New insulation materials, which have the high performance and are above insulation standard, have been developed steadily. Because there are not studies on the building energy rating system and economic evaluation considering new insulation materials, these matters should be studied. In result alternatives, which applied 6 high performance material each, reduce the annual heating energy and raise the building energy rating. Applying the vacuum insulation material(Case 1, 2) and vacuum or triple glazing can retrieves the investment with $120 and $140$\sim$150 per barrel each.

• 한국신재생에너지학회:학술대회논문집
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• 2008.05a
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• pp.120-123
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• 2008

국제 원유 가격의 상승은 국내 주식시장에 어떠한 영향을 끼칠것인가에 대해서는 다양한 의견들이 있다. 에너지기업들에 한정해도 이는 마찬가지이다. 최근의 주식시장을 관찰해보면 급격한 원유가격의 상승에도 불구하고 다른 방향의 결과들을 나타나고 있다. 주가는 다양하고 불확실한 여러 요인들에 의해 영향을 받으며 유가는 그 중 한 요인에 불과하기 때문에, 유가가 주가에 미치는 영향을 분리해서 살펴볼 필요가 있다. 본 연구에서는 2000년 1월 4일부터 2007년 10월 16일까지의 일별 국제 원유 가격과 국내 주요 에너지기업들의 주가 자료를 이용해 시계열 분석을 시도해보았다.

• Environmental and Resource Economics Review
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• v.11 no.4
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• pp.633-657
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• 2002

This study presents a demand modelling for landfill gas, which is used as alternative energy source for district cooling business. By analyzing the cost minimizing behavior of producer facing with three alternative energy sources such as electricity, cooling heat water, and gas, a demand function for landfill gas is derived from the optimal operating time of gas fired production facility, and estimated using unpublished data, which are associated with Seoul city's development plan for Sang-am area. The estimation results repeals that Seoul City could supply the land-fill gas of 13.76 million cubic meters each year at the price of about 16 won per cubic meters. However, if the investment costs associated with installation of gas collecting facilities are treated as sunk costs, annual amount of gas supplied is expected to increase to 14.22 million cubic meters at a lower unit price of 14.76 won.

• Proceedings of the KIEE Conference
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• summer
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• pp.123-125
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• 2004

This paper describes an optimal configuration of Community Energy System (CES) for the multi-energy consumers and analyzes economical feasibility for such system. The most of previous feasibility studies for Co-Generation plants of CES in Korea have shown negative results due to the abnormally low price of power rate in Korea. However, in order to overcome this situation a new approach was examined in this Paper. The efforts of this approach the selection of the low price but reliable facility and maximizing the capacity factor of the facility. MGT was selected in view of low price and good reliability. In order to maximize the capacity factor the system capacity should be quite lower than the actual required Electrical and Heat load of the subject entity. In this report 100 kW Co-Generation facility was selected in view of conservative analysis. The results of the analysis showed that pay back period may vary from 4 to 5 yens according to the application of LNG rates whether it is to-generation rate or the normal business rate. With the analysis in this paper we confirmed that CES is feasible even in Korea if we do not insist to select the capacity of CES to cover all the energy required but select a smaller size of CES compared to the actual requirement, which can allow full load operation of the system continuously.

• Environmental and Resource Economics Review
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• v.16 no.3
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• pp.653-682
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• 2007

In this study, multi-sectoral partial equilibrium and computable general equilibrium models of Taiwan are used to investigate the direct and indirect effects of energy price increases on overall economies and agro-food sector in Taiwan. The results suggest that agricultural prices, production cost would increase between 0.27% to 1.88%, and a reduction in GDP around 0.39% to 0.54 %. The negative impact on livestock sector is slightly higher than that on the crop sector. Negative impacts are also observed in the employment and wages. The rising oil price has the potential to discourage production of energy-intensive activity because of the possibility of substitution and adaptations. The growth rate of real GDP will shrink by 0.64% to 1.06% and CPI will increase by 1.17% to 1,95%. Both the agriculture and non-agricultural sector also respond by raising output prices by 0.80% to 1.33%. The rising international oil price has urged the government to take policy actions like using alternative fuels such as biodiesel, bioethanol, and adopting measures to cut down on energy consumptions mainly in transportation sectors in response to public concern over economic shocks.