• Journal of Energy Engineering
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• v.25 no.1
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• pp.29-42
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• 2016

This study analyzes the economic efficiency of utilizing hot waste water at a thermoelectric power plant, which is part of recent projects supported by the Korean government to foster new energy industry. The author proposes an institution that provides economic incentives to promote the project. Based on a method of calculating Levelized cost of energy (LCOE), this study finds that the LCOE of using hot waste water at power plants is higher than that of oil boiler, biomass and a power plant's auxiliary steam but similar to that of the geothermal system. Also, according to sensitivity analysis on the LCOE of each element in the system of using hot waste water, a distance of heat supply is most sensitive. Therefore, this study shows that when the government devises an incentive-based institution to expand the project of utilizing hot waste water, it is necessary to establish Renewable Energy Certificate (REC) weights that are differentiated by a distance of heat supply.

• New & Renewable Energy
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• v.8 no.3
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• pp.23-29
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• 2012

LCOE of 11 Korean PV projects, total capacity of 44 MW, were calculated for each project being larger than 1 MW respectively. 9 out of 11 projects were constructed in 2008 under FIT scheme revealed that average LCOE is 600 Korean Won per kilowatt-hour and it becomes reduced to 348 Korean Won per kilowatt-hour for 2 projects that are constructed under RPS scheme in 2012. During the period between 2008 and 2012, installation cost per megawatt became 55% of 2008 value with operation and maintenance cost lowered to 80% while LCOE became only 58% due to reduced project size and lower irradiation for later projects. However, it is found that the ratio of LCOE / unit installation cost looks relatively constant, so that it can be used as an auxiliary parameter to gauge learning effect of BOS portion of a PV project.

• Journal of Korean Society of Coastal and Ocean Engineers
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• v.35 no.3
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• pp.57-66
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• 2023

In order to understand the economic feasibility of an offshore wind farm, this paper analyzed the differences in LCOE (levelized cost of energy) according to the support type and construction method of the substructure in terms of LCOE and sensitivity analysis was conducted according to the main components of LCOE. As for the site to be studied, the Southwest Offshore Wind Farm was selected, and the capital expenditures were calculated according to the size of the offshore wind farm and the installation unit. As a result of the sensitivity analysis, major components showed high sensitivity to availability, turbine related cost, weighted average cost of capital and balance of system related cost. Moreover, the post-piling jacket method, which was representatively applied to the substructure of the offshore wind farm in Korea, was selected as a basic plan to calculate the capital expenditures, and then the capital expenditures of the pre-piling jacket method and the tripod method were calculated and compared. As a result of analyzing the LCOE, it was confirmed that the pre-piling jacket method of the supporting structure lowers the LCOE and improves economic feasibility as the installation number of turbines increases.

• Journal of the Korean Solar Energy Society
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• v.40 no.1
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• pp.1-13
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• 2020

A study on estimation of the Levelized Cost of Energy (LCOE) was conducted for the Korean onshore wind farms. The LCOE was estimated on the basis of the actual wind farm data from Data Analysis, Retrieval Transfer system (DART) run by Financial Supervisory Service. Recently, social discount rate of Korea dropped from 5.5% to 4.5%, which was taken into account for this study. The onshore wind farms studied accounted for 42% of all the onshore wind farms of South Korea. Capital Expenditure (CapEx) and Operation Expenditure (OpEx) were calculated from the actual data, while Capacity Factors (CFs) were obtained from the wind farms of five provinces. Their distributions were estimated using Maximum Likelihood Estimation method, and then Monte Carlo Simulation (MCS) was performed for estimating LCOE, Levelized Fixed Cost (LFC), and Levelized Variable Cost (LVC). As a result, the LCOEs at the two discount rates, 4.5 and 5.5%, were 142 and 152 $/MWh, respectively, which were lower than that of financially viable onshore wind project of Korea. The 1% drop of social discount rate was estimated to result in a 10 $/MWh decrease in LCOE and a 4 $/MWh in LFC, which can be an advantage for wind project investors.

• Current Photovoltaic Research
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• v.6 no.4
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• pp.124-132
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• 2018

The Korean electric power supply plan was prepared by greatly enhancing the environmental and safety with considering the economical efficiency of the electric equipment, the impact on the environment and the public safety. As a result, the fossil energy-based power generation sector is accelerating the paradigm shift to eco-friendly energy such as solar power and wind. Also the solar power industry is expected to grow into a super large-sized industry by converging the energy storage and electric vehicle industry. Generally, a levelized cost of electricity (LCOE) is used to calculate the power generation cost for different generation power generation efficiency, operating cost, and life span. In this paper, we have studied the future research and development direction of photovoltaic technology development for the era of massive utilization of photovoltaic solar power, and have studied the LCOE of major countries including China, USA, Germany, Japan and Korea. Finally we have reviewed USA and Japan research programs to reduce the LCOE.

• Journal of Ocean Engineering and Technology
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• v.35 no.5
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• pp.382-392
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• 2021

In recent years, floating offshore wind turbines have attracted more attention as a new renewable energy resource while bottom-fixed offshore wind turbines reach their limit of water depth. Various projects have been proposed with the rapid increase in installed floating wind power capacity, but the economic aspect remains as a biggest issue. To figure out sensible approaches for saving costs, a comparison analysis of the levelized cost of electricity (LCOE) between floating and bottom-fixed offshore wind turbines was carried out. The LCOE was reviewed from a social perspective and a cost breakdown and a literature review analysis were used to itemize the costs into its various components in each level of power plant and system integration. The results show that the highest proportion in capital expenditure of a floating offshore wind turbine results in the substructure part, which is the main difference from a bottom-fixed wind turbine. A floating offshore wind turbine was found to have several advantages over a bottom-fixed wind turbine. Although a similarity in operation and maintenance cost structure is revealed, a floating wind turbine still has the benefit of being able to be maintained at a seaport. After emphasizing the cost-reduction advantages of a floating wind turbine, its LCOE outlook is provided to give a brief overview in the following years. Finally, some estimated cost drivers, such as economics of scale, wind turbine rating, a floater with mooring system, and grid connection cost, are outlined as proposals for floating wind LCOE reduction.

• Current Photovoltaic Research
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• v.10 no.2
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• pp.62-71
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• 2022

The Global RE100 campaign is a one of the voluntary campaign, but it has a lot of influence on domestic companies that have not yet joined the Global RE100. Accordingly, the Korean government introduced the Korean RE100 (K-RE100) system to prepare an institutional mechanism for domestic companies to respond to RE100. However, in Korea, due to the high LCOE of renewable energy and institutional limitations of the power transaction system, there is a limit for companies to implement RE100 in various ways. Therefore, in this study, the implementation cost of RE100 for green tariff, REC purchase, third-party PPA, direct(or corporate) PPA, and self-generation was compared and analyzed to derive the order of implementation with the net present value (NPV) of costs incurred over 20 years. As a result, self-construction was analyzed as the most economical method, but the implementation through the green tariff seemed to be the most realistic implementation method so far. However, considering the gradually falling LCOE, third-party PPA and direct PPA could be secured competitiveness against green tariff in 2025 and 2026. Then it could allow the companies to have various portfolios for implementation of RE100.

• Clean Technology
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• v.23 no.4
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• pp.441-447
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• 2017

The economic analysis for the power plant developed in the conceptual design phase is becoming more important and, research on process optimization for process development that meets the target economic is actively carried out. In the filed of power generation systems, economic assessment methods to predict the levelized cost of electricity (LCOE) has been widely applied for comparing economic effect quantitatively. In this paper, the platform that design criteria of key component required to optimize economic of power cycle can be calculated reversely was established roughly and design criteria of the key equipment (Compressor, turbine, heat exchanger) required to meet the target LCOE (the LCOE of supercritical steam Rankine cycle) was derived when the supercritical $CO_2$ power cycle is applied to the coal-fired power plant.

• Korean Chemical Engineering Research
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• v.54 no.4
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• pp.470-478
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• 2016

Greenhouse gas (GHG) emissions caused by fossil fuels consumption is one of the challenging issues worldwide. Renewable energy source (RES)-based energy supply system can be a promising alternative to the current fossil fuel-based system. In this study, we propose an optimization approach for designing a stand-alone hybrid energy supply system using RES and evaluating economic performances of the energy systems. The suggested approach is used to answer the questions; i) what technology is suitable to various demand sectors in different regions, and ii) how does it cost to meet the demand in term of the levelized costs of energy (LCOE). We illustrate the applicability of the proposed approach by applying to the design problem of energy supply systems for residential, agricultural and commercial sectors of Korea. As the results of LCOE analysis, for the residential sector has the LCOE ranging of $0.37~$0.44/kWh, the agricultural sector of $0.15~$0.61/kWh and the commercial sector of $0.12~$0.28/kWh.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.67 no.2
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• pp.179-185
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• 2018

A considerable cost gap between three major power generation technologies, namely nuclear, coal, and combined cycle gas turbine (CCGT), has been a well-established fact in the Korean electricity market. Alternatively, this paper analyzes the levelized costs of electricity (LCOE) of the three technologies reflecting overall social costs of electricity generation including accident risk, $CO_2$ emission, and air pollution damage. The paper unveils to what extent current discriminative subsidies on fuels regarding the social costs, mostly through tax exemptions, affect economic competitiveness of the technologies. In particular, it finds relative positions of coal and CCGT could be altered depending on appreciation level of the social costs. It has limits in analyzing fixed costs of the technologies, however, due to limited data availability of nuclear power, and suggests further studies on the issue.