• Journal of the Korea Convergence Society
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• v.12 no.6
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• pp.139-150
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• 2021

Currently, the RPS(Renewable Portfolio Standard) is the policy which supplies new and renewable energy. Power generation companies with large capacity should produce renewable energy or secure through the purchase of REC (Renewable Energy Certificates) as mandatory. The government has revised the REC weight several times, which weights each energy source by evaluating the economic and social value of renewable energy sources, and revised the mandatory supply ratio to gradually increase. This study helps to find the impact of policies on related industries. In this study, time-series analysis and regression analysis on the capacity of PV(Photovoltaics) facilities as a dependent variable were performed to analyze the effect of the revision of the REC weight for photovoltaic power generation and the amount of mandatory supply for renewable energy. As a result, it was statistically assessed that the revision of the REC weight and the increase in the mandatory supply has a significant effect on the increase in the amount of PV facilities.

• Journal of Energy Engineering
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• v.23 no.4
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• pp.106-111
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• 2014

In order to manage the gradual increase of electricity demand, the United States, Japan, and Europe are seeking to achieve overall change of electric power system by introducing solutions such as smart grid. Among these solutions, there are various research projects regarding the Electricity Storage System (ESS), which aims to promote the efficient usage of electricity and grid system of new and renewable energy system. Korean government revised the law by including ESS in new and renewable energy facilities to accelerate ESS deployment. Following the same direction of the government policy, this study suggests methodologies of setting REC weighted value that guarantees investment financial feasibility when new and renewable power producers install ESS.

• Journal of the Korea Convergence Society
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• v.11 no.8
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• pp.173-182
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• 2020

The government continuously improves the RPS system to expand the supply of renewable energy, but there has been criticism that more environmental aspects should be considered to reduce GHG emission. REC weights are differentiated according to renewable energy sources. Greenhouse gas emission is one of the decisive factors, and its value is set by experts' opinion. This study assigns LCA to get accurate value of GHG emission. The LCA calculates emitted greenhouse gases from entire process of fuel production, transportation, power plant construction, operation, and decommission. This study suggests a method to change the greenhouse gas reduction effect from the existing qualitative method to the quantitative method and evaluates them. As a result, the evaluation score is changed, but the tier interval is so large that it does not affect the REC weight. Therefore, this study suggests the way that directly reflect the greenhouse gas reduction effect in the REC weight.

• Environmental and Resource Economics Review
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• v.31 no.1
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• pp.51-83
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• 2022

Renewable Portfolio Standards (RPS), one of the most commonly adopted regulation for renewable energy expansion since 2012, has the obvious advantage of inducing competition in power generation source and alleviating the government's financial burden. However, the abuse of credit multipliers and the use of national Renewable Energy Credits (RECs) have resulted in the distortion of RPS as a quantitative control policy. Just as no face value 10 years ago can hold its real value, this paper highlights for the first time that 27.8% of total renewable obligations over the total RPS period were not actually met due to REC inflation and the consequent decline in the value of renewable energy generation. In addition, the distortion of face/real value of REC causes problems in interoperability with other government policies such as RE100 and Emission Trading System.

• 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.

• Journal of Energy Engineering
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• v.25 no.2
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• pp.94-100
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• 2016

ESS(Energy Storage System) is an important source that keeps power supply stable and utilizes electricity efficiently. For example, ESS contributes to resolve power supply imbalance, stabilize new renewable energy output and regulate frequency. ESS is predicted to be expanded to 55.9GWh of installed capacity by 2023, which is 30 times more than that of 2014. To raise competitiveness of domestic ESS industry in this increasing world market, we have disseminated load-shift ESS for continuous power supply imbalance with FR ESS, and also necessity to secure domestic track record is required. However in case of FR ESS, utility of installing thermal power plant is generally generated within 5% range of rated capacity, so that scalability of domestic market is low without dramatic increase of thermal power plant. Necessity of load-shift ESS dissemination is also decreasing effected by surplus backup power securement policy, raising demand for new dissemination model. New dissemination model is promising for $CO_2$ reduction effect in spite of intermittent output. By stabilizing new renewable energy output in connection with new renewable energy, and regulating system input timing of new renewable energy generation rate, it is prospected model for 'post-2020' regime and energy industry. This research presents a policy alternatives of REC multiplier calculation method to induce investment after outlining PV-connected ESS charge/discharge mode to reduce GHG emission, This alternative is projected to utilize GHG emission reduction methodology for 'Post-2020' regime, big issue of new energy policy.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.67 no.8
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• pp.1009-1018
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• 2018

As the generation of renewable energy increases rapidly, the stability of the grid due to its intermittency becomes a problem. The most appropriate way to solve this problem is to combine and operate the renewable generators with the ESS(Energy Storage System). However, since the revenues of operating the ESS are less than the investment cost, many countries are implementing various incentive policies for encouraging investment of the ESS. In this paper we estimated optimal capacity of the ESS to maximize profits of renewable energy generation businesses under the incentive policy of Korea and analyzed the impact of the incentive policy on the future electric power system of Jeju island. The simulation results show that the incentive policy has significantly improved the profitability of the renewable energy businesses generation business. But the volatility of the net demand has increased as the energy stored in the ESS is discharged intensively at the time of the incentive application.

• Proceedings of the KIPE Conference
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• 2019.11a
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• pp.64-66
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• 2019

국내 수상태양광 발전시스템에 대한 연구는 2010년 정부의 지원을 통해 본격적으로 시작되었으며 주요 연구 내용은 수상용 태양광 모듈, 수상 태양광발전 시스템 설계, 부유체 안전 기술 및 실증과 같은 형태로 진행되었으며, 주요 성과로 육상 대비 5~10%의 발전량 향상 검증, 수상 태양광모듈 개발, 수상태양광 부유체 설계 등이 있었고, 수상태양광설비의 가격이 육상 대비 높았던 것을 고려하여 2015년 수상태양광설비의 REC 가중치가 1.5로 신설됨에 따라 수상태양광설비의 보급이 증가하는 계기를 맞이하였다. 국내 저수지 및 댐을 관리하는 한국농어촌공사 및 한국수자원공사가 수상태양광 보급에 주요한 역할을 하고 있다. 본 논문에서는 2019년 8월 부터 시작된 한국농어촌공사가 관리하고 있는 수상 태양광설비에 대한 현장조사 내용을 공유하고자 합니다.

• 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.

• Journal of the Korea Organic Resources Recycling Association
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• v.30 no.2
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• pp.29-42
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• 2022

The government promotes the 2050 carbon-neutral policy. Therefore, the concern to convert livestock manure into energy is increasing for the reduction of greenhouse gases generated in the livestock industry sector. In this study, the economic feasibility of the livestock manure solid fuel power generation facility, which is a major consumer of livestock manure solid fuel, was assessed to expand the demand for livestock manure solid fuel. The production cost of livestock manure solid fuel showed the lowest production cost of 97.4 thousand won/ton when dried using solid fuel at a 200 ton/day scale bio-drying facility. The livestock manure solid fuel power generation facility showed economic feasibility at a REC weight of 1.5 in the case of the bio-drying facility, so it was necessary to set a REC weight of 1.5 or more to expand the demand for livestock manure solid fuel. The conversion of livestock manure into solid fuel has various environmental benefits, such as the reduction of greenhouse gases and the effect of reducing non-point pollutants in the water system. Therefore, in order to expand livestock manure solid fuel production facility, it was required to review the feasibility including various environmental benefits.