An Empirical Study of the Economic Net-Zero Energy Mix in Industrial Complexes

MinHyeok Kang, SooJin Park () and KangWook Cho
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MinHyeok Kang: Energy Policy and Engineering Department, KEPCO International Nulcear Graduate School (KINGS), Ulsan 658-91, Republic of Korea
SooJin Park: Energy Policy and Engineering Department, KEPCO International Nulcear Graduate School (KINGS), Ulsan 658-91, Republic of Korea
KangWook Cho: Energy Policy and Engineering Department, KEPCO International Nulcear Graduate School (KINGS), Ulsan 658-91, Republic of Korea

Energies, 2024, vol. 17, issue 21, 1-31

Abstract: This study examines the optimal energy mix for industrial complexes by incorporating renewable energy systems, decarbonization strategies, and sector coupling technologies. Using data from the Balan Industrial Complex in Korea, five energy scenarios were evaluated, ranging from conventional systems (Scenario 1) to advanced renewable configurations (Scenario 5). The results show that Scenario 5, which integrates sector coupling systems and decarbonization technologies, is the most cost-effective and environmentally sustainable. Scenario 5 achieves the lowest Net Present Cost (NPC), and significantly reduces CO 2 emissions. Furthermore, an analysis of electricity prices and CO 2 costs from Korea, the United States, and Germany highlights the critical role of regional electricity tariffs and carbon pricing in determining the economic feasibility of energy systems. While renewable setups require higher initial investments, Scenario 5 proves to be the most economically viable over time, offering both cost savings and environmental benefits. These findings provide valuable insights for policymakers and industry leaders, emphasizing the importance of customized strategies to optimize energy systems in industrial applications.

Keywords: net-zero energy; industrial complexes; renewable energy systems; decarbonization; sector coupling (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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