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

Chang-Gi Min, Jong Keun Park, Don Hur and Mun-Kyeom Kim
Additional contact information
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

Energies, 2015, vol. 8, issue 9, 1-20

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.

Keywords: economic viability; offshore wind farm; renewable energy resources; renewable portfolio standard; support schemes (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/1996-1073/8/9/9731/pdf (application/pdf)
https://www.mdpi.com/1996-1073/8/9/9731/ (text/html)

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:gam:jeners:v:8:y:2015:i:9:p:9731-9750:d:55444

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().