Quantitatively exploring the future of renewable portfolio standard in the Korean electricity sector via a bottom-up energy model

Choi, Dong Gu; Park, Sang Yong; Hong, Jong Chul

doi:10.1016/j.rser.2015.05.048

Cited by 23 publications

(6 citation statements)

References 14 publications

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“…An ideal design of the RPS framework involves some consideration of balance among environmental governance, renewable energy development goals, and implementation costs and must align with toplevel energy policies [33,34]. The design should also relate to the interactions among the quota indicators, market structure, and market entities in view of not distorting the attendant goals and causing unnecessary loss of social benefits [35].…”

Section: Design Concept Of the Renewable Portfolio Standards Mechanis...mentioning

confidence: 99%

Optimal Trading Decision-Making of Power Supply Chain under Renewable Portfolio Standards

Wang¹,

Xu²,

Zhao³

2021

Energy Engineering

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Under the background of implementing renewable portfolio standards and the ever-improving tradable green certificate scheme, the increasingly environmentally-friendly preference of power users is leading to changes in electricity demand, which, in turn, is driving changes in the decision-making behaviors of various actors in the power supply chain. Based on this, with the goal of pursuing maximum profit, consumer-power-demand functions have been introduced with some consideration of the factors of consumer preference to establish an optimal profit model for each trading subject in non-cooperative states of the power supply chain, under the constraints of meeting renewable energy portfolio standards. Here, the optimal strategy of each trading subject is presented by adopting the reverse induction method. Furthermore, examples are used to analyze factors such as the influence of environmental protection preferences, quota ratios, price substitutions, and market demand as well as the optimal profit of each trading subject in view of providing a reference for the decision-making in the power supply chain trading subjects.

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Section: Design Concept Of the Renewable Portfolio Standards Mechanis...mentioning

confidence: 99%

Optimal Trading Decision-Making of Power Supply Chain under Renewable Portfolio Standards

Wang¹,

Xu²,

Zhao³

2021

Energy Engineering

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“…First, Reference [17] conducted a preliminary evaluation of Korea's RPS introduction by comparing Feed-in tariffs (FIT) and RPS in terms of capacity expansion, technological progress, cost-effectiveness, and market risk. Furthermore, References [4,18] investigated the current RPS policy in Korea, identified problems, and derived a future outlook based on quantitative indicators. Reference [18] conducted a virtual evaluation of current RPS policy in Korea based on a bottom-up model.…”

Section: Renewable Portfolio Standards (Rps)mentioning

confidence: 99%

“…Furthermore, References [4,18] investigated the current RPS policy in Korea, identified problems, and derived a future outlook based on quantitative indicators. Reference [18] conducted a virtual evaluation of current RPS policy in Korea based on a bottom-up model. Reference [4] analyzed an optimal portfolio for 2050 in the Korean power sector.…”

Section: Renewable Portfolio Standards (Rps)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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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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“…At present, the research on RPS mainly includes the following aspects: (1) Analysis of the evolution of RPS at the institutional level. Policy design and impact analysis [ 6 ], which is reflected in how to coordinate RPS with existing top-level energy policies [ 7 ]; summary of experience in quota policies [ 8 ], which is reflected in the reasonable design of performance mechanisms [ 9 ], and setting quota indicators fairly and reasonably [ 10 , 11 ]; analysis of policy effectiveness evaluation [ 12 , 13 ], which is reflected in the implementation effect of electricity price subsidies based on the development of electricity price mechanisms [ 14 ], and the implementation difficulties and price prediction under the green certificate pricing mechanism [ 15 ]. (2) Evaluation of the effectiveness of RPS combined with other emission reduction policies.…”

Section: Introductionmentioning

confidence: 99%

Impact analysis of renewable portfolio standard on retail power market considering quota heterogeneity

Fu,

Li,

Giwa

et al. 2023

Heliyon

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Quantitatively exploring the future of renewable portfolio standard in the Korean electricity sector via a bottom-up energy model

Cited by 23 publications

References 14 publications

Optimal Trading Decision-Making of Power Supply Chain under Renewable Portfolio Standards

Optimal Trading Decision-Making of Power Supply Chain under Renewable Portfolio Standards

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

Impact analysis of renewable portfolio standard on retail power market considering quota heterogeneity

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