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The Economic Viability of Renewable Portfolio Standard Support for Offshore Wind Farm Projects in Korea

Author

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  • Chang-Gi Min

    (Department of Electrical and Computer Engineering, Seoul National University, 599 Gwanak-ro, Gwanak-gu, Seoul 151-744, Korea)

  • Jong Keun Park

    (Department of Electrical and Computer Engineering, Seoul National University, 599 Gwanak-ro, Gwanak-gu, Seoul 151-744, Korea)

  • Don Hur

    (Department of Electrical Engineering, Kwangwoon University, 20 Kwangwoon-ro 20, Nowon-gu, Seoul 139-701, Korea)

  • Mun-Kyeom Kim

    (Department of Energy System Engineering, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 156-756, Korea)

Abstract

Offshore wind farm (WF) projects have been promoted by support schemes as part of the expansion of renewable energy resources in Korea. This paper examines in detail how the Renewable Portfolio Standard (RPS), which was adopted post the Feed-in-Tariff scheme in 2012, has had a profound impact on the economic benefits of offshore WFs in Korea. A framework for analyzing the economic viability of RPS is presented and applied to the sixth basic plan for long-term electricity supply and demand in Korea. The electricity market price is forecast using a reformulated probabilistic production cost (PPC) model, and the renewable energy certificate (REC) price is calculated using its determination rule. The results show that the existing RPS will be ineffective in increasing the penetration of offshore WFs in Korea; however, they also indicate that the economic viability of offshore WFs could be improved by adjusting the existing RPS.

Suggested Citation

  • Chang-Gi Min & Jong Keun Park & Don Hur & Mun-Kyeom Kim, 2015. "The Economic Viability of Renewable Portfolio Standard Support for Offshore Wind Farm Projects in Korea," Energies, MDPI, vol. 8(9), pages 1-20, September.
    • Handle: RePEc:gam:jeners:v:8:y:2015:i:9:p:9731-9750:d:55444
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    References listed on IDEAS

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    Cited by:

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    2. Yang Tang & Yifeng Liu & Weiqiang Huo & Meng Chen & Shilong Ye & Lei Cheng, 2023. "Optimal Allocation Scheme of Renewable Energy Consumption Responsibility Weight under Renewable Portfolio Standards: An Integrated Evolutionary Game and Stochastic Optimization Approach," Energies, MDPI, vol. 16(7), pages 1-22, March.
    3. Sajid Ali & Sang-Moon Lee & Choon-Man Jang, 2017. "Techno-Economic Assessment of Wind Energy Potential at Three Locations in South Korea Using Long-Term Measured Wind Data," Energies, MDPI, vol. 10(9), pages 1-24, September.
    4. Thomas Poulsen & Charlotte Bay Hasager & Christian Munk Jensen, 2017. "The Role of Logistics in Practical Levelized Cost of Energy Reduction Implementation and Government Sponsored Cost Reduction Studies: Day and Night in Offshore Wind Operations and Maintenance Logistic," Energies, MDPI, vol. 10(4), pages 1-28, April.

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