Public preferences for introducing a power-to-heat system in South Korea

Ju-Hee Kim, Seul-Ye Lim and Seung-Hoon Yoo ()

Renewable and Sustainable Energy Reviews, 2021, vol. 151, issue C

Abstract: As variable renewable energy (VRE), such as solar and wind energy, is expanded, there is an emerging need to limit the power generation from VRE for the purpose of ensuring the stability of the power system. This research is particularly interested in the so-called power-to-heat (P2H) system, which converts idle power from VRE into heat and utilizes the heat as hot water or heating instead of limiting the power generation from VRE. The research aims to assess the public value by employing contingent valuation (CV) to elicit people's willingness to pay (WTP) for introducing the P2H system in South Korea. To achieve this aim, in June 2020, a CV survey of 1000 interviewees in South Korea was carried out, posing a closed-ended question. Although 53.9% of interviewees did not place any value on the introduction of P2H, the average WTP was found to be KRW 4348 (USD 3.59) per annum, which holds statistical significance. If this sample value is extended to the population, it would be KRW 88.48 billion (USD 73.12 million) per year. The costs incurred in introducing P2H, such as the cost of developing P2H technology, the cost of heat storage infrastructure, subsidies for local district heating operators, and so on, may be compared with the public value. Various implications derived from the results are also discussed.

Keywords: Variable renewable energy; Power-to-heat; District heating system; Willingness to pay; Contingent valuation (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032121009059
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:151:y:2021:i:c:s1364032121009059

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2021.111630

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().