• Environmental and Resource Economics Review
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• v.20 no.2
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• pp.335-356
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• 2011

In this paper, we attempted to suggest a way to evaluate appropriateness and efficiency for the energy consumption structure. For this, based on Markowitz (1952)' mean-variance portfolio model, we constructed an optimal fossil fuel mix. In constructing the optimal mix, we first defined returns on fossil fuels (oil, coal and natural gas) as TOE (Ton of Oil Equivalent) per $1. Then, by using the dynamic latent common factor model, we decomposed the growth rates of the returns on each fossil fuel into two parts : the common part and the idiosyncratic part. Finally, based on the results from the dynamic latent common factor model, we constructed the optimal fossil fuel mix implied by the mean-variance portfolio model. Our results indicate that for the fossil fuel mix to be on the efficient frontier, it is crucial to reduce oil consumption as low as possible. Moreover, our results imply that it is more efficient to increase natural gas consumption rather than coal consumption in reducing oil consumption. These results are in line with the strategies for the future energy consumption structure pursued by Korea and indicate that reduction in oil use can improve overall efficiency in energy consumption.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.23 no.5
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• pp.50-57
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• 2009

The Kyoto Protocol finally entered into force in 2008. In this respect, it is imperative to explore different options to reduce greenhouse gas emissions for developing countries under the framework of the Kyoto Protocol. One of the main sources of $CO_2$ gas emission is fossil fueled power plants, thereby emission reduction could be achieved by substituting fossil fuel by non-fossil fuel sources on electric power generation sector. This paper presents the method for evaluating the effectiveness of emissions trading by fuel mix change. The cost of Fuel mix is formulated considering the economic effects of emission trading in electricity market. And the optimal fuel mix is proposed under the given emission constraints.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.61 no.4
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• pp.522-533
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• 2012

This paper presents an adaptive strategy of GENCOs for reducing the greenhouse gas by fuel mix change. Fuel mix stands for generation capacity portfolio composed of different fuel resources. Currently, the generation sector of power industry in Korea is heavily dependent on fossil fuels, therefore it is required to change the fuel mix gradually into more eco-friendly way based on renewable energies. The generation costs of renewable energies are still expensive compared to fossil fueled resources. This is why the adaptive change is more preferred at current stage and this paper proposes an optimal strategy for capacity planning based on multiple environmental scenarios on the time horizon. This study used the computer program tool named GATE-PRO (Generation And Transmission Expansion PROgram), which is a mixed-integer non-linear program developed by Hongik university and Korea Energy Economics Institute. The simulations have been carried out with the priority allocation method in the program to determine the optimal mix of NRE(New Renewable Energy). Through this process, the result proposes an economic fuel mix under emission constraints compatible with the greenhouse gas mitigation policy of the United Nations.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.25 no.10
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• pp.28-37
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• 2011

Though Korea has introduced CBP(Cost Based pool) power trading system since 2001, long-term Generation system planning has been executed by government for Cost minimization every 2 years. Until currently the model which is used for Generation system planning and best-mix only considers cost minimization and total yearly or quarterly electricity demand every year. In a view point of one day power supply operation, technical characteristics, like the ramp up/down rate of total generation system, minimum up/down time and GFRQ(Governor Free Response Quantity), are very important. this paper analyzes Optimal Fuel-Mix for 2022 Korea generation system satisfying these constraints of each fuel type and considering pump storage plants, construction cost and $CO_2$ emission charge Using MILP(Mixed Integer Linear Programming) method. Also the sensitivity analysis which follows in future power industry environmental change accomplished.

• Nuclear Engineering and Technology
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• v.54 no.4
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• pp.1464-1470
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• 2022

This paper presents a high performance burnable absorber named as CIMBA (Cylindrically Inserted and Mechanically Separated Burnable Absorber) for the soluble-boron-free SMR. The CIMBA is the cylindrical gadolinia inserted into the annular fuel pellets. Although the CIMBA utilizes the spatial self-shielding effect of the fuel material, a large reactivity upswing occurs when the gadolinia is depleted. To minimize the reactivity swing of the CIMBA-loaded FA, two approaches were investigated. One is controlling the spatial self-shielding effect of the CIMBA as burnup proceeds by a multi-layered structure of the CIMBA (ML-CIMBA) and the other is the mixed-loading of two different types of CIMBA (MIX-CIMBA). Both approaches show promising performances to minimize the reactivity swing, where the MIX-CIMBA is more preferable due to its simpler fabrication process. In conclusion, the MIX-CIMBA is expected to accelerate the commercialization of the CIMBA and can be used to achieve an optimal soluble-boron-free SMR core design.

• Environmental and Resource Economics Review
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• v.11 no.2
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• pp.211-231
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• 2002

This paper summarizes the results of a study that assess how a demand side management (DSM) system addresses key economic and environmental challenges facing in the Korean natural gas sector considering; ${\bullet}$ high discrepancies of seasonal consumption volume and of load factor in unmatured domestic LNG market, ${\bullet}$ unfavorable and volatile international LNG market, imposing with the contestable "take-or-pay" contract terms, ${\bullet}$ low profile of LNG and existence of market barriers against an optimal fuel mix status in the industrial energy sector. A particular focus of this study is to establish an 'extended' DSM system in the unmatured gas market, especially in industry sector, that could play a key role to assure an optimum fuel mix scheme. Under the concept of 'extended' DSM, a system dynamics modeling approach has been introduced to explore the option to maximize economic benefits in terms of the national energy system optimization, entailing different ways of commitments accounting for different DSM measures and time delay scenarios. The study concludes that policy options exist that can reduce inefficiencies in gas industry and end-use system at no net costs to national economy. The most scenarios find that, by the year 2015, it is possible to develop a substantial potential of increased industrial gas end-uses under more reliable and stable load patterns. Assessment of sensitivity analysis suggests that time delay factor, in formulating DSM scenarios, plays a key role to overcome various market barriers in domestic LNG market and provides a strong justification for the policy portfolios 'just in time' (time accurateness), which eventually contribute to establish an optimum fuel mix strategy. The study indicates also the needs of advanced studies based on SD approach to articulate uncertainty in unmatured energy market analysis, including gas.

• Journal of the Korean Operations Research and Management Science Society
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• v.37 no.3
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• pp.135-150
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• 2012

This paper presents a portfolio model for a long-term power generation mix problem. The proposed portfolio model evaluates generation mix by considering the tradeoffs between the expected cost for power generation and its variability. Unlike conventional portfolio models measuring variance, we introduce Conditional Value-at-Risk (CVaR) in designing the variability with aims to considering events that are enormously expensive but are rare such as nuclear power plant accidents. Further, we consider uncertainties associated with future electricity demand, fuel prices and their correlations, and capital costs for power plant investments. To obtain an objective generation by each energy source, we employ the sample average approximation method that approximates the stochastic objective function by taking the average of large sample values so that provides asymptotic convergence of optimal solutions. In addition, the method includes Monte Carlo simulation techniques in generating random samples from multivariate distributions. Applications of the proposed model and method are demonstrated through a case study of an electricity industry with nuclear, coal, oil (OCGT), and LNG (CCGT) in South Korea.

• Proceedings of the KIEE Conference
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• 2008.11a
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• pp.426-428
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• 2008

현재 우리는 화석연료의 고갈 및 에너지 수입 해외의존도의 심화, 최근의 고유가 등으로 신재생에너지원의 개발 및 이용, 보급 확대가 국가적 관심사항이 되고 있으며, 신재생에너지를 전원을 보급하기 위해 노력하고 있다. 정부는 2012년부터 RPS(Renewable Portfolio Standard)를 도입하여 신재생에너지전원의 비중을 설비용량의 5%(발전량의 7%)까지 확대하는 것을 목표로 하고 있다. 따라서 본 연구에서는 가격규제가 아닌, 보급목표를 규제하여 시장에서 가격이 결정되는 RPS를 도입하였을 경우의 현 전력수급계획의 수립절차에 대한 상세한 고찰과 문제점 분석을 통해 우리나라의 RPS를 반영한 최적 전원구성비를 도출하기 위한 방안을 GATE-PRO(Generation And Transmission Expansion PROgram) 모형을 이용하여 모색하고자 한다. 또한 이를통해 우리나라의 RPS도입이 전력수급계획에 미치는 영향을 살펴보고자 한다.

• Proceedings of the KIEE Conference
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• 2007.11b
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• pp.231-233
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• 2007

구조개편 이후 전력수급계획 수립여건이 한전의 독점적 계책에서 사업자 건설의향으로 전환됨에 따라 신규설비 건설계획은 수익성 위주로 전환되었다. 이에 따라 본 논문에서는 기저선비(원자력, 석탄화력) 운전효율성 항상 차원에서 건설되던 양수설비의 적정 설비규모를 계통 공급신뢰도 측면, 에너지 이응 효율성 향상 측면, 전력시장에서의 경제성 측면에서 검토하여 최적전원구성(Best Fuel Mix) 유도론 위한 정책적 방향을 제시하였다.

• 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.