An analysis of the optimum renewable energy portfolio using the bottom–up model: Focusing on the electricity generation sector in South Korea

Park, Sang Yong; Yun, Bo-Yeong; Yun, Chang Yeol; Lee, Dong Hoon; Choi, Dong Gu

doi:10.1016/j.rser.2015.08.029

Cited by 52 publications

(17 citation statements)

References 33 publications

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“…Therefore, the TIMES model can be defined through its objective function and constraint conditions. The objective function for the TIMES model is the total discounted costs of the system over the entire period prior to analysis, and the function is defined as follows [20,24]:…”

Section: Methodsmentioning

confidence: 99%

“…As for South Korea, Park et al [20] introduces a model that can construct an optimal renewable energy technology portfolio with minimum costs that satisfies the allotment ratio for renewable energy generation by using the TIMES model. As a result, solar PV generation proved to be the most price-competitive, and should R&D investments continue to proceed simultaneously with generation, the possibility of market entries for not only solar PV, but also wind energy would also be expected to increase, driving the impact of greenhouse gas reductions even higher.…”

Section: Literature Reviewmentioning

confidence: 99%

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Quantitative Analysis on the Energy and Environmental Impact of the Korean National Energy R&D Roadmap a Using Bottom-Up Energy System Model

Choi

Friley

et al. 2017

Sustainability

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According to the Paris Agreement at the 21st Conference of the Parties, 196 member states are obliged to submit their Intended Nationally Determined Contributions (INDC) for every 5 years. As a member, South Korea has already proposed the reduction target and need to submit the achievement as a result of the policies and endeavors in the near future. In this paper, a Korean bottom-up energy system model to support the low-carbon national energy R&D roadmap will be introduced and through the modeling of various scenarios, the mid-to long-term impact on energy consumptions and CO 2 emissions will be analyzed as well. The results of the analysis showed that, assuming R&D investments for the 11 types of technologies, savings of 13.7% with regards to final energy consumptions compared to the baseline scenario would be feasible by 2050. Furthermore, in the field of power generation, the generation proportion of new and renewable energy is expected to increase from 3.0% as of 2011 to 19.4% by 2050. This research also suggested that the analysis on the Energy Technology R&D Roadmap based on the model can be used not only for overall impact analysis and R&D portfolio establishment, but also for the development of detailed R&D strategies.

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Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Quantitative Analysis on the Energy and Environmental Impact of the Korean National Energy R&D Roadmap a Using Bottom-Up Energy System Model

Choi

Friley

et al. 2017

Sustainability

Self Cite

View full text Add to dashboard Cite

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“…However, how to optimally mix those energy sources in the future while satisfying carbon emission limits and installing more renewable energy sources becomes a critical problem. Recently, Park et al [5] proposed a bottom-up model (The Integrated Markal-Efom System model) for calculating the optimum renewable energy portfolio in the electricity generation sector of Korea. However, the model only focuses on the generation amounts of renewable sources, such as wind, PV, hydro, and geothermal.…”

Section: Introductionmentioning

confidence: 99%

Optimal Energy Mix with Renewable Portfolio Standards in Korea

Geem

Kim

2016

Sustainability

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Korea is a heavily energy-dependent country whose primary energy consumption ranks ninth in the world. However, at the same time, it promised to reduce carbon emission and planned to use more renewable energy. Thus, the objective of this study is to propose an optimal energy mix planning model in electricity generation from various energy sources, such as gas, coal, nuclear, hydro, wind, photovoltaic, and biomass, which considers more renewable and sustainable portions by imposing governmental regulation named renewable portfolio standard (RPS). This optimization model minimizes various costs such as construction cost, operation and management cost, fuel cost, and carbon emission cost while satisfying minimal demand requirement, maximal annual installation potential, and renewable portfolio standard constraints. Results showed that this optimization model could successfully generate energy mix plan from 2012 to 2030 while minimizing the objective costs and satisfying all the constraints. Therefore, this optimization model contributes more efficient and objective method to the complex decision-making process with a sustainability option. This proposed energy mix model is expected to be applied not only to Korea, but also to many other countries in the future for more economical planning of their electricity generation while affecting climate change less.

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“…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.…”

mentioning

confidence: 99%

“…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.…”

mentioning

confidence: 99%

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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An analysis of the optimum renewable energy portfolio using the bottom–up model: Focusing on the electricity generation sector in South Korea

Cited by 52 publications

References 33 publications

Quantitative Analysis on the Energy and Environmental Impact of the Korean National Energy R&D Roadmap a Using Bottom-Up Energy System Model

Quantitative Analysis on the Energy and Environmental Impact of the Korean National Energy R&D Roadmap a Using Bottom-Up Energy System Model

Optimal Energy Mix with Renewable Portfolio Standards in Korea

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

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