Economic Analysis of Special Rate for Renewable Energy Based on the Design of an Optimized Model for Distributed Energy Resource Capacities in Buildings

Jihun Jung, Keon Baek, Eunjung Lee, Woong Ko and Jinho Kim
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Jihun Jung: Korea Hydro & Nuclear Power Co., Ltd., 1655 Bulguk-ro, Gyeongju-si, Gyeongsangbuk-do 38120, Korea
Keon Baek: Gwangju Institute of Science and Technology, School of Integrated Technology, 123 Cheomdangwagi-ro, Buk-gu, Gwangju 61005, Korea
Eunjung Lee: Gwangju Institute of Science and Technology, School of Integrated Technology, 123 Cheomdangwagi-ro, Buk-gu, Gwangju 61005, Korea
Woong Ko: School of Electrical, Electronic and Control Engineering, Changwon University, 20 Changwondaehak-ro, Uichang-gu, Gyeongsangnam-do 51140, Korea
Jinho Kim: Gwangju Institute of Science and Technology, School of Integrated Technology, 123 Cheomdangwagi-ro, Buk-gu, Gwangju 61005, Korea

Energies, 2021, vol. 14, issue 3, 1-19

Abstract: Various incentive schemes are being implemented to improve the economic return of distributed energy resources (DERs). Accordingly, research on the optimal capacity design and operations of photovoltaic (PV) power generation and energy storage systems (ESSs) is important to ensure the economic efficiency of DERs. This study presents the models of optimal capacity and facility operation methods based on long-term operational changes of DERs in a building with self-consumption. Key policy variables are derived for a renewable energy system. We first analyzed the operating environments of the DERs according to the basic types of PVs and ESSs, and by examining the detailed benefit structure of a special rate for renewable energy. The optimal capacity of PVs and ESSs with the lowest net cost was estimated using various parameters in consideration of long-term operations (~15 years), and by setting rules for a special rate for renewable energy. It was confirmed that the combined use of peak and rate reductions constituted the most economical operational approach. A case study confirmed the economic sensitivity of cost and benefit analyses based on actual load data. Correspondingly, it is inferred that this study will identify core policy variables that can aid decision-making in the long-term perspective.

Keywords: rate for renewable energy; energy storage system; photovoltaic energy; energy promotion; optimization (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: 2021
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