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Estimating the cost of saving electricity of energy efficiency programs: A case study of South Korea

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  • Kang, Heejae
  • Kim, Yoori
  • Lee, Jungbae
  • Baek, Jungho

Abstract

This study analyzes the total cost of saving electricity (TCSE) of energy efficiency (EE) market pilot project granting incentives for the installation of 11 high-efficiency energy appliances in 51 business sites selected in 2019 in Korea. We calculate TCSE composed of participant and program costs in ex-ante perspectives as a whole, by each efficient measure, and by each business site. The weighted average of TCSE is calculated as 2.98 ¢/kWh, which is lower than the LCOE calculated based on the installation of additional power generation sources in Korea. Additionally, excluding 2 of the 11 target technologies that were rarely introduced, the TCSE showed less than 10 cents/kWh, and it was confirmed that most of the total energy savings of the program around 84,630 MWh were achieved with these inexpensive technologies. We believe that these findings have profound implications on Korea's energy efficiency programs and policy analysis.

Suggested Citation

  • Kang, Heejae & Kim, Yoori & Lee, Jungbae & Baek, Jungho, 2022. "Estimating the cost of saving electricity of energy efficiency programs: A case study of South Korea," Energy Policy, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:enepol:v:160:y:2022:i:c:s0301421521005371
    DOI: 10.1016/j.enpol.2021.112672
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    References listed on IDEAS

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    Cited by:

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    2. Sean Murphy & Natalie Mims Frick, 2023. "Estimating the Drivers of the Cost of Saved Electricity in Utility Customer-Funded Energy Efficiency Programs," Energies, MDPI, vol. 16(5), pages 1-15, February.

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    More about this item

    Keywords

    Energy efficiency; Rebate-funded efficiency; Demand-side management (DSM); Cost of saving electricity (CSE);
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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