Policy Evaluation and Enhanced Operational Strategies for PV-Linked ESS in Korea: Practical Applications and Insights from Real-World Data

Seungha Kim, Siyoung Lee () and Sungsoo Kim ()
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Seungha Kim: Department of Energy and Electrical Engineering, Tech University of Korea (TUK), Siheung 15073, Republic of Korea
Siyoung Lee: Department of Energy and Electrical Engineering, Tech University of Korea (TUK), Siheung 15073, Republic of Korea
Sungsoo Kim: Department of Energy and Electrical Engineering, Tech University of Korea (TUK), Siheung 15073, Republic of Korea

Energies, 2024, vol. 17, issue 16, 1-15

Abstract: With the intensification of the global commitment to renewable energy, South Korea’s rapid expansion in renewable capacity necessitates efficient operational strategies to address the inherent variability of these energy sources. Despite the implementation of policies aimed at integrating energy storage systems (ESS) with renewable generation, such as providing additional renewable energy certificates (RECs), the measures undertaken remain relatively ineffective. Thus, this study evaluates the shortcomings of existing policies and proposes an innovative operational strategy tailored to Korea’s energy landscape. The strategy is implementable immediately using existing facilities, without requiring any new equipment, and facilitates profits of up to 12.45% greater compared with those generated using the original approach. Moreover, the results are nearly as effective as an ideal scenario wherein the PV generation and system marginal price are accurately known. Additionally, the decreased economic feasibility of ESS owing to the discontinuation of subsidies is highlighted and solutions are proposed to mitigate the problem. This underscores the urgent need for improved regulatory measures and enhanced operational strategies. The proposed approach highlights the potential to considerably reduce inefficiencies and operational costs, thereby contributing to more sustainable energy management practices within Korea.

Keywords: photovoltaic-linked energy storage system; real-world data; operational strategies; profit enhancement; institutional solutions (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: 2024
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