• Environmental and Resource Economics Review
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• v.19 no.1
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• pp.159-198
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• 2010

The Korean government is planning to introduce the Renewable Portfolio Standard (RPS) system to replace the currently used Feed-in-Tariff (FIT) system which is a subsidy-based mechanism to foster the renewable energy industry. The RPS system is a market-oriented system in which the power companies are obliged to use renewable energy sources to produce electricity by a certain ratio of their production level. They can either produce for themselves or simply purchase the REC (renewable energy certificate) in the market to implement. The objective of this article is to compare the RPS system with the current FIT system in terms of the implementing cost to achieve the policy goal to expand the share of renewable energy m the total power generation. The analysis is conducted using Linear Programming models. The results of this study imply several policy suggestions to successfully introduce the RPS system.

• Journal of Energy Engineering
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• v.14 no.2 s.42
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• pp.82-97
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• 2005

RPS (Renewable Portfolio Standards) is a policy tool to disseminate renewable energies through market mechanism. RPS promotes renewable power generation by obligating electricity market participants to deliver the required amount of electricity from renewable energies. To promote and encourage renewable energies, Korean government is considering to introduce RPS to domestic market in the near future. The purpose of this paper is to analyze the definition and market mechanism of RPS and to review key considerations in its design. In conclusion, we recommend some prerequisite in its introduction to Korea.

• Journal of Environmental Policy
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• v.7 no.4
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• pp.1-34
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• 2008

It is recognized that RPS(Renewable Portfolio Standard) and FIT(Feed-in Tariff) are two main policy instruments to promote Renewable Electricity(RE). The Korean Government announced in 2008 that RE promotion scheme will be changed to RPS from current FIT system in 2012. But we believe RPS is inferior to FIT for promoting less developed technologies such as photovoltaics or wind power. This is because the achievement of RE promotion in countries adopting RPS is markedly worse than that in European counties or Janpan adopting FIT. If the policy change is inevitable, when considering the lessons from Japan's failure as well as supporting the less developed technologies, it is recommended that either the market should be divided into several technology and scale categories, or more RPS-Credit per kWh should be assigned to the photovoltaic and wind power than instead of letting the all technologies compete in the "open category". It is also recommended that (1) Renewable Energy Promotion Fund(tentative name) based on a part of current energy related tax revenue should be introduced, or (2) cost of supporting the Renewable Electricity should automatically be transferred into the electricity bill of electricity consumers following the German System.

• Environmental and Resource Economics Review
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• v.14 no.3
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• pp.729-751
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• 2005

RPS(Renewable Portfolio Standards) is an institutional device to promote use of renewable energy through market mechanism by making renewable energy to constitute a pre-announced portion of the electricity production. We measure economic impacts of the introduction of RPS to domestic electricity market at the levels of electricity market, individual industrial sectors and the economy as a whole. First, we examine the TREC(Tradable Renewable Energy Credits) market, where the credits in excess of the obligation of the renewable energy production are sold to those who have to meet the obligation through purchased credits. We then measure end-users' additional cost originating from the introduction of RPS and TREC in electricity production, and their impacts on price and supply in the retail electricity market. Next, using input-output analysis, we measure economic impacts of the changes in retail price and supply on individual industrial sectors and the economy as a whole. Among many others, we find small price effect and large GDP effect - sectoral electricity price rises at around 5%, sectoral price level rises by 0.258%, and sectoral GDP declines by 1.940% on average by the year 2011.

• Proceedings of the KIEE Conference
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• 2007.11b
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• pp.267-269
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• 2007

본 논문은 재생에너지 의무할당제 (RPS)를 시행하고 있는 선진국의 시행사례론 검토하여 RPS제도를 시행중인 국가들의 경험 및 사례로부터 유익한 시사점을 도출하는데 그 목적이 있다.

• Environmental and Resource Economics Review
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• v.19 no.4
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• pp.805-828
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• 2010

Korea also plans to introduce Renewable Portfolio Standard (RPS) for strengthening market functions after 2012 as United States and several members of EU countries did. Through the introduction of RPS, it requires energy industry to supply new and renewable energy at fixed rate. Therefore, it will contribute to the distribution of new and renewable energy. This paper analyzed the economic effect of the introduction of RPS using CGE. The summary of the paper on the analysis of the economic effect based on endogenous growth theory under imperfect market competition by using CGE is as follows; Since RPS possibly regulates the amount of new and renewable energy, it can achieve the target amount of new and renewable energy without fail. As achieving the target amount accurately, the distribution of more advanced skills can be expected. However, GDP reduction can occur because investment cost increases due to the requirement of new and renewable energy supply. Therefore, in the long run, it is appropriate to introduce RPS because it contributes to the distribution of new and renewable energy and can be utilized as a new growth engine to encourage economic growth.

• Environmental and Resource Economics Review
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• v.21 no.2
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• pp.301-319
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• 2012

The primary purpose of Renewable Portfolio Standard (RPS) is to facilitate investment in renewable energy technology. Since emission trading program has similar purpose, it is conceivable to attempt to link RPS and emission trading program through interlinked markets. RPS in Korea with single REC and emission allowance markets has particular advantages for constructing linkages between two markets. This paper provides a real option model to examine investment effects of linkage of RPS to the trading program. Emission permit price and REC price are assumed to follow stochastic processes and renewable investment is irreversible. The result shows that linked market provides further incentive for renewable investment by raising managerial flexibility for power companies.

• 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.

• Proceedings of the KIEE Conference
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• 2015.07a
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• pp.455-456
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• 2015

2010년 민간 기업의 1,000 MW 규모 석탄 화력 발전소가 전력수급 기본계획에 최초로 반영된 이래로 이들이 해결해야 하는 가장 큰 난제는 RPS 제도 도입과 그에 따른 REC 공급의무이다. 만약 민간 석탄 발전소들이 REC 공급의무를 불이행하게 된다면, 막대한 과징금이 부과되기 때문에 이들의 전력생산 비용함수는 이를 반영하여 수정되어야 한다. 더 나아가 REC 공급의무는 발전량에 따라 결정되기 때문에, 민간 발전사업자가 자신의 REC 공급의무 이행능력이 부족하다고 판단할 경우 자체적으로 발전량을 감축하여 과징금을 낮추는 전략을 선택할 수 있다. 본 논문에서는 RPS 제도 도입에 따른 민간 석탄 발전소의 비용함수 변화와 이윤(수익) 극대화를 위하여 발전량을 감소시키는 메커니즘을 분석하였다.

• 한국신재생에너지학회:학술대회논문집
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• 2005.06a
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• pp.573-576
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• 2005

대표적인 신$\cdot$재생에너지의 시장확대 정책으로 RPS와 기준가격의무구매제가 주요 선진국에서 실시되고 있으며 자국의 자원부존과 경제사회여건에 맞춰 적합한 정책수단을 선택하고 있음. RPS 실시국가에서 RPS는 특별법으로 제정되어 실시효과를 극대화하고 있으며, 신$\cdot$재생에너지발전 인중서의 거래를 포함시켜 시너지효과를 거두고 있음. RPS의 단일의 최적모델은 존재하지 않으며 기본설계와 세부사항은 각 국의 고유의 자원부존 여건 및 경제사회적 특징에 따라 달라짐. RPS의 국내도입이 전력시장과 국민경제에 미치는 영향은 그리 크지 않으며 외부효과를 감하면 편익을 초래함. 또한 수요조사결과 RPS에 대한 선호도가 비교적 높게 나타나며 산$\cdot$ 재생에너지발전의 시장확대 수단으로 높은 점수를 매기고 있음 그러나 RPS의 기본설계를 신중히 가져가야 할 것이며, 법제도 정비에 임해서는 기존에 실시되고 있는 기준가격우선구매제도(발전차액보전)의 고려해야 함.