Optimization of Korean energy planning for sustainability considering uncertainties in learning rates and external factors

Kim, Seunghyok; Koo, Joonhoi; Lee, Chang Jun; Yoon, En Sup

doi:10.1016/j.energy.2012.02.062

Cited by 41 publications

(16 citation statements)

References 42 publications

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“…However, this study assumes that the amount of additional REC/CER purchases are different depending on the size of the power producer. The annual unit generating and operating costs are known for all planning periods for each generation source [3,[42][43][44][45][46]. Lastly, power plant expiration has not been confirmed in the 7th basic plan for the whole period, and the lifetimes of newly added power plants are not considered in this study.…”

Section: Mathematical Model For Operational Strategymentioning

confidence: 99%

“…Globally, interest in future-oriented values such as sustainability or green growth is rising steadily [1,2]. Many countries experiencing economic growth have an accompanying increase in energy consumption [3]. In recent decades, these countries have been considering environmental threats and the risks of depletion of traditional energy sources.…”

Section: Introductionmentioning

confidence: 99%

“…Thus, from a corporate management perspective, RPS and ETS will affect revenues and costs. Most previous studies have derived energy plans that expand generation capacity and minimize the total cost from a national perspective [1,3,5,[8][9][10][11]. Therefore, our study aimed at maximizing the profit of power producers that are required to meet electricity demand while operating under both regulations.…”

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confidence: 99%

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Optimal Operational Strategy for Power Producers in Korea Considering Renewable Portfolio Standards and Emissions Trading Schemes

2019

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Globally, many countries are experiencing economic growth while concurrently increasing their energy consumption. Several have begun to consider a low-carbon energy mix to mitigate the environmental impacts caused by increased fossil fuel consumption. In terms of maximizing profits, however, power producers are not sufficiently motivated to expand capacity due to high costs. Thus, the Korean government initiated the Renewable Portfolio Standard (RPS), an obligation to generate a certain proportion of a producer's total generation using renewable energy for power producers with capacities of 500 MW or more, and the Emissions Trading Scheme (ETS), designed to attain a carbon emissions reduction goal. We propose a mathematical model to derive the optimal operational strategy for maximizing power producer profits with a capacity expansion plan that meets both regulations. As such, the main purpose of this study was to obtain the optimal operational strategy for each obligatory power producer. To that end, we defined a 2 × 2 matrix to classify their types and to conduct scenario-based analyses to assess the impact of major factor changes on solutions for each type of power producer. Finally, for the power generation industry to operate in a sustainable and eco-friendly manner, we extracted policy implications that the Korean government could consider for each type of power producer.Energies 2019, 12, 1667 2 of 24 implemented RPS, which obligates power producers with 500 MW or more of NRE generation capacity to produce a certain percentage of the previous year's NRE generation capacity from renewable energy (RE) sources. The government aims to have more than 10% of electric power generation come from RE sources by 2023.At the 21st Conference of Parties, Korea, whose GHG emissions were 7th among Organization for Economic Co-operation and Development (OECD) countries in 2016, declared a national reduction target of 37% compared to business as usual (BAU) by 2030 [4]. In order to achieve this, in 2015, the government started ETS, which assigns companies Carbon Emissions Reductions (CER) based on annual and sectoral GHG reduction targets. Each company complies with this regulation by buying CER surplus, selling CER shortage, or paying penalties for excess emissions.Korea's major producers in the power generation industry, which accounts for more than one-third of national GHG emissions [7], must follow both regulations. RPS and ETS act as means to implement international commitments, from a national viewpoint, and to create a new paradigm that can affect operations, from an enterprise perspective. Therefore, obligatory power producers (hereafter, power producers) should be aware of the mechanisms of both regulations. They should also provide a stable power supply and establish an efficient future operational strategy.Korea's power industry is moving towards increasing the private-sector share from the nation-led sector. Thus, from a corporate management perspective, RPS and ETS will affect revenues and costs. Most previous...

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Section: Mathematical Model For Operational Strategymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Optimal Operational Strategy for Power Producers in Korea Considering Renewable Portfolio Standards and Emissions Trading Schemes

2019

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“…Here the RWM is employed to produce the scenarios required by the use of PDF functions [27]. Before describing the process of scenario generation, the appropriate structure of RWM-oriented with the utilized PDF function is shown in Fig.…”

Section: Scenario Generation Processmentioning

confidence: 99%

Consideration effect of uncertainty in the reliability indices of power systems using a scenario-based approach

Abbasi

Solookinejad

Fard

et al. 2015

Journal of Intelligent &Amp; Fuzzy Systems

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In power systems, reliability evaluations mainly depend on the precise forecasting of the reliability parameters of the internal components. Nonetheless, the procedure of calculating the reliability parameters such as failure rate and repair rate parameters is based on the failure statistics and measurements which can cause much inherent uncertainty and thus affecting the reliability indices of the system. Therefore, the main purpose of this work is to suggest a sufficient and easy-implemented approach based on scenario production to capture the uncertainty of the reliability parameters including the failure rate and repair rate variables. Here, the scenario generation process is constructed using the roulette wheel mechanism along with the probability density function of the random variables. Then, the proposed scenario based approach makes use of a scenario reduction mechanism to avoid high computational burden. This aspect of the proposed stochastic framework makes it useful for the optimization applications which require iterative analysis. In order to see the feasibility and satisfying performance of the proposed framework, an IEEE standard test system is used as the case study.

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“…However, these techniques are ineffective in representing the interaction and interdependence that some parameters have among them. The incorporation of stochasticity through a Monte Carlo analysis is one of the most effective and extensively used approaches to examine and quantify the influence and the impact that various parameters, correlated or not, have on the strategic GEP decisions [27,28]. In addition to this, the calculation of the combined effects that these uncertain parameters have on the decision variables, enables us to derive more accurate and secure results and to represent more realistically the development of the power sector over a long-term planning horizon.…”

Section: Introductionmentioning

confidence: 99%

An integrated stochastic multi-regional long-term energy planning model incorporating autonomous power systems and demand response

Koltsaklis

Liu

Georgiadis

2015

Energy

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Optimization of Korean energy planning for sustainability considering uncertainties in learning rates and external factors

Cited by 41 publications

References 42 publications

Optimal Operational Strategy for Power Producers in Korea Considering Renewable Portfolio Standards and Emissions Trading Schemes

Optimal Operational Strategy for Power Producers in Korea Considering Renewable Portfolio Standards and Emissions Trading Schemes

Consideration effect of uncertainty in the reliability indices of power systems using a scenario-based approach

An integrated stochastic multi-regional long-term energy planning model incorporating autonomous power systems and demand response

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