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An Empirical Study of the Economic Net-Zero Energy Mix in Industrial Complexes

Author

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  • MinHyeok Kang

    (Energy Policy and Engineering Department, KEPCO International Nulcear Graduate School (KINGS), Ulsan 658-91, Republic of Korea)

  • SooJin Park

    (Energy Policy and Engineering Department, KEPCO International Nulcear Graduate School (KINGS), Ulsan 658-91, Republic of Korea)

  • KangWook Cho

    (Energy Policy and Engineering Department, KEPCO International Nulcear Graduate School (KINGS), Ulsan 658-91, Republic of Korea)

Abstract

This study examines the optimal energy mix for industrial complexes by incorporating renewable energy systems, decarbonization strategies, and sector coupling technologies. Using data from the Balan Industrial Complex in Korea, five energy scenarios were evaluated, ranging from conventional systems (Scenario 1) to advanced renewable configurations (Scenario 5). The results show that Scenario 5, which integrates sector coupling systems and decarbonization technologies, is the most cost-effective and environmentally sustainable. Scenario 5 achieves the lowest Net Present Cost (NPC), and significantly reduces CO 2 emissions. Furthermore, an analysis of electricity prices and CO 2 costs from Korea, the United States, and Germany highlights the critical role of regional electricity tariffs and carbon pricing in determining the economic feasibility of energy systems. While renewable setups require higher initial investments, Scenario 5 proves to be the most economically viable over time, offering both cost savings and environmental benefits. These findings provide valuable insights for policymakers and industry leaders, emphasizing the importance of customized strategies to optimize energy systems in industrial applications.

Suggested Citation

  • MinHyeok Kang & SooJin Park & KangWook Cho, 2024. "An Empirical Study of the Economic Net-Zero Energy Mix in Industrial Complexes," Energies, MDPI, vol. 17(21), pages 1-31, October.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:21:p:5404-:d:1510032
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    References listed on IDEAS

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    2. Fridgen, Gilbert & Keller, Robert & Körner, Marc-Fabian & Schöpf, Michael, 2020. "A holistic view on sector coupling," Energy Policy, Elsevier, vol. 147(C).
    3. Dufo-López, Rodolfo & Bernal-Agustín, José L., 2008. "Multi-objective design of PV–wind–diesel–hydrogen–battery systems," Renewable Energy, Elsevier, vol. 33(12), pages 2559-2572.
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