Economic evaluation of renewable energy systems under varying scenarios and its implications to Korea's renewable energy plan
Dongil Shin and
En Sup Yoon
Applied Energy, 2011, vol. 88, issue 6, pages 2254-2260
This paper studies economics of renewable energy systems with consideration of future prospects on costs and uncertain external conditions that may affect competitiveness in the power plant market. The concept of learning curve is adopted to compute estimates on the costs of installing and operating renewable energy systems in the future; fuel costs and carbon price are modeled as scenario-dependent variables to analyze their impact on total costs under different scenarios. The proposed approach allows evaluation and comparison of total costs necessary in implementing renewable energy plans under varying technological, and/or economical conditions that face uncertainty at present. Moreover, analyzing the evaluation results further with techniques like sensitivity analysis can identify factors central to reducing the total costs. As an illustrative case-study, the Korean government's renewable energy plan has been evaluated accordingly, under three different scenarios defined by International Energy Agency (IEA). The evaluation results indicate minor changes in total costs of achieving the plan among three scenarios, mainly due to counterbalancing between the price of fossil fuels and carbon price. Further analyses revealed factors central to lowering the total costs necessary in implementing the plan--hybridization between renewable energy systems, reduction of biomass production costs via technological innovation, increasing learning rates by focusing on R&D and international cooperation.
Keywords: Economic; evaluation; Energy; policy; Learning; effect; Renewable; energy; South; Korea (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:appene:v:88:y:2011:i:6:p:2254-2260
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 405891/bibliographic
Access Statistics for this article
Applied Energy is currently edited by J. Yan
More articles in Applied Energy from Elsevier
Series data maintained by Zhang, Lei ().