• The Transactions of The Korean Institute of Electrical Engineers
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• v.67 no.4
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• pp.512-521
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• 2018

Islands that is far away from onshore have used internal-combustion engine driving alternators to secure electric power. However, with Paris convention on climate change, there is a growing interest in eco-friendly energy independent island that replaces microgrid(MG) consisting of photovoltaic, wind power, and energy storage system with alternators for internal combustion engines. And also, national emission trading has been implemented, and the price of certified emission reduction(CER) has a influence on system marginal price(SMP). Because, the low cost generation source decides SMP when CER price is low, while the more expensive generation source decides SMP when CER price is high. Therefore, the increasing of CER price has a strong influence on the annualized return of MG independent power producer. Moreover, the fixed RPS price is implemented from 2017, which the increasing of CER price under the fixed RPS price or the variable RPS price affects annualized return differently. In this paper, the annualized return according to CER price is analyzed for large, middle, and small scaled islands, the effect of CER price on the annualized return was confirmed.

• Journal of Energy Engineering
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• v.23 no.1
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• pp.7-20
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• 2014

The optimal woodchip production system was developed and the production cost of a forest woodchip fuel was calculated for utilizing the pitch pine, which covers around 480,000ha nationwide. the marginal price of the woodchip fuel considering the factor of supply price, electricity and heat selling price as well as capacity factor were suggested and the economic sensitivity analysis was conducted for various scenario. The most important variable which determine economic feasibility was a fuel cost for the power generation facility. If the electricity price is higher than the current SMP(System Marginal Price) or the capacity factor is higher than 80%, there fully is a benefit to consume the woodchip fuels produced in the suggested production system in this study. In addition, the additional benefit becomes more obvious when considering REC(Renewable Energy Certificate) and CDM(Clean Development Mechanism). Therefore, it is strongly suggested for domestic power generation sector to utilize the forest biomass fuel to achieve the obligatory target of RPS.