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Competitiveness of open-cycle gas turbine and its potential in the future Korean electricity market with high renewable energy mix

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  • Kim, Eun-Hwan
  • Park, Yong-Gi
  • Roh, Jae Hyung

Abstract

In this paper, we analyzed the competitiveness of an open-cycle gas turbine (OCGT) in the Korean electricity market and found reasons why OCGT has not been constructed since 2001, when the market opened. Through the analysis, we found that OCGT was weak in the Korean electricity market due to 3 factors: high load factor, high price of liquefied natural gas, and existing inefficient power plants. Using the conformity theory of the optimum in resource planning and the equilibrium in market dynamics, we verified the reasons by implementing resource planning using the Wien Automatic System Planning (WASP)-Ⅳ package with actual market data for the 16 years from 2001 to 2016. In addition, considering the new energy policy of Korea, shifting main sources of electricity generation from nuclear and coal to clean renewable energies and natural gas, we analyzed the competitiveness of OCGT in the future Korean electricity market. We identified the factors unfavorable for OCGT in the current market and suggested what should be changed to cope with high renewable energy penetration.

Suggested Citation

  • Kim, Eun-Hwan & Park, Yong-Gi & Roh, Jae Hyung, 2019. "Competitiveness of open-cycle gas turbine and its potential in the future Korean electricity market with high renewable energy mix," Energy Policy, Elsevier, vol. 129(C), pages 1056-1069.
    • Handle: RePEc:eee:enepol:v:129:y:2019:i:c:p:1056-1069
    DOI: 10.1016/j.enpol.2019.03.014
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    References listed on IDEAS

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    1. Wandisile Pram & Njabulo Kambule & Omoseni Adepoju, 2022. "Probing the Financial Sustainability of Eskom’s Open Cycle Gas Turbines (OCGTs) Utilisation (2018–2021)," Sustainability, MDPI, vol. 14(16), pages 1-16, August.
    2. Mohd Alsaleh & Azeem Oluwaseyi Zubair & Abdul Samad Abdul‐Rahim, 2020. "The impact of global competitiveness on the growth of bioenergy industry in EU‐28 region," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1304-1316, September.
    3. Choo, Hyunwoong & Kim, Yong-Gun & Kim, Dongwoo, 2024. "Power sector carbon reduction review for South Korea in 2030," Renewable and Sustainable Energy Reviews, Elsevier, vol. 196(C).
    4. Józsa, Viktor & Malý, Milan & Füzesi, Dániel & Rácz, Erika & Kardos, Réka Anna & Jedelský, Jan, 2023. "Schlieren analysis of non-MILD distributed combustion in a mixture temperature-controlled burner," Energy, Elsevier, vol. 273(C).
    5. Insu Do & Siyoung Lee & Gab-Su Seo & Sungsoo Kim, 2023. "An Analysis of the Effects of Renewable Energy Intermittency on the 2030 Korean Electricity Market," Energies, MDPI, vol. 16(10), pages 1-19, May.
    6. Seong Won Moon & Tong Seop Kim, 2020. "Advanced Gas Turbine Control Logic Using Black Box Models for Enhancing Operational Flexibility and Stability," Energies, MDPI, vol. 13(21), pages 1-23, October.

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