IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i3p645-d488237.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Jihun Jung & Keon Baek & Eunjung Lee & Woong Ko & Jinho Kim, 2021. "Economic Analysis of Special Rate for Renewable Energy Based on the Design of an Optimized Model for Distributed Energy Resource Capacities in Buildings," Energies, MDPI, vol. 14(3), pages 1-19, January.
  • Handle: RePEc:gam:jeners:v:14:y:2021:i:3:p:645-:d:488237
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/3/645/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/14/3/645/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nastasi, Benedetto & Mazzoni, Stefano & Groppi, Daniele & Romagnoli, Alessandro & Astiaso Garcia, Davide, 2021. "Solar power-to-gas application to an island energy system," Renewable Energy, Elsevier, vol. 164(C), pages 1005-1016.
    2. Byuk-Keun Jo & Seungmin Jung & Gilsoo Jang, 2019. "Feasibility Analysis of Behind-the-Meter Energy Storage System According to Public Policy on an Electricity Charge Discount Program," Sustainability, MDPI, vol. 11(1), pages 1-17, January.
    3. Lai, Chun Sing & McCulloch, Malcolm D., 2017. "Levelized cost of electricity for solar photovoltaic and electrical energy storage," Applied Energy, Elsevier, vol. 190(C), pages 191-203.
    4. Park, Hojeong & Hong, Won Kyung, 2014. "Korea׳s emission trading scheme and policy design issues to achieve market-efficiency and abatement targets," Energy Policy, Elsevier, vol. 75(C), pages 73-83.
    5. Fossati, Juan P. & Galarza, Ainhoa & Martín-Villate, Ander & Fontán, Luis, 2015. "A method for optimal sizing energy storage systems for microgrids," Renewable Energy, Elsevier, vol. 77(C), pages 539-549.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nastasi, Benedetto & Mazzoni, Stefano & Groppi, Daniele & Romagnoli, Alessandro & Astiaso Garcia, Davide, 2021. "Optimized integration of Hydrogen technologies in Island energy systems," Renewable Energy, Elsevier, vol. 174(C), pages 850-864.
    2. Hua, Zhengcao & Ma, Chao & Lian, Jijian & Pang, Xiulan & Yang, Weichao, 2019. "Optimal capacity allocation of multiple solar trackers and storage capacity for utility-scale photovoltaic plants considering output characteristics and complementary demand," Applied Energy, Elsevier, vol. 238(C), pages 721-733.
    3. de Perthuis, Christian & Trotignon, Raphael, 2014. "Governance of CO2 markets: Lessons from the EU ETS," Energy Policy, Elsevier, vol. 75(C), pages 100-106.
    4. Koecklin, Manuel Tong & Longoria, Genaro & Fitiwi, Desta Z. & DeCarolis, Joseph F. & Curtis, John, 2021. "Public acceptance of renewable electricity generation and transmission network developments: Insights from Ireland," Energy Policy, Elsevier, vol. 151(C).
    5. Tong Koecklin, Manuel & Fitiwi, Desta & de Carolis, Joseph F. & Curtis, John, 2020. "Renewable electricity generation and transmission network developments in light of public opposition: Insights from Ireland," Papers WP653, Economic and Social Research Institute (ESRI).
    6. Lee, Juyong & Cho, Youngsang, 2020. "Estimation of the usage fee for peer-to-peer electricity trading platform: The case of South Korea," Energy Policy, Elsevier, vol. 136(C).
    7. Fuquan Zhao & Feiqi Liu & Han Hao & Zongwei Liu, 2020. "Carbon Emission Reduction Strategy for Energy Users in China," Sustainability, MDPI, vol. 12(16), pages 1-19, August.
    8. Donovin D. Lewis & Aron Patrick & Evan S. Jones & Rosemary E. Alden & Abdullah Al Hadi & Malcolm D. McCulloch & Dan M. Ionel, 2023. "Decarbonization Analysis for Thermal Generation and Regionally Integrated Large-Scale Renewables Based on Minutely Optimal Dispatch with a Kentucky Case Study," Energies, MDPI, vol. 16(4), pages 1-23, February.
    9. Chang, Kai & Chen, Rongda & Chevallier, Julien, 2018. "Market fragmentation, liquidity measures and improvement perspectives from China's emissions trading scheme pilots," Energy Economics, Elsevier, vol. 75(C), pages 249-260.
    10. Mostafavi Tehrani, S. Saeed & Shoraka, Yashar & Nithyanandam, Karthik & Taylor, Robert A., 2019. "Shell-and-tube or packed bed thermal energy storage systems integrated with a concentrated solar power: A techno-economic comparison of sensible and latent heat systems," Applied Energy, Elsevier, vol. 238(C), pages 887-910.
    11. Richard Schmalensee & Robert N. Stavins, 2017. "Lessons Learned from Three Decades of Experience with Cap and Trade," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(1), pages 59-79.
    12. Zhang, Yijie & Ma, Tao & Elia Campana, Pietro & Yamaguchi, Yohei & Dai, Yanjun, 2020. "A techno-economic sizing method for grid-connected household photovoltaic battery systems," Applied Energy, Elsevier, vol. 269(C).
    13. Hai Lan & Jinfeng Dai & Shuli Wen & Ying-Yi Hong & David C. Yu & Yifei Bai, 2015. "Optimal Tilt Angle of Photovoltaic Arrays and Economic Allocation of Energy Storage System on Large Oil Tanker Ship," Energies, MDPI, vol. 8(10), pages 1-16, October.
    14. Ana Rita Silva & Ana Estanqueiro, 2022. "From Wind to Hybrid: A Contribution to the Optimal Design of Utility-Scale Hybrid Power Plants," Energies, MDPI, vol. 15(7), pages 1-19, April.
    15. Coelho, Vitor N. & Coelho, Igor M. & Coelho, Bruno N. & Cohen, Miri Weiss & Reis, Agnaldo J.R. & Silva, Sidelmo M. & Souza, Marcone J.F. & Fleming, Peter J. & Guimarães, Frederico G., 2016. "Multi-objective energy storage power dispatching using plug-in vehicles in a smart-microgrid," Renewable Energy, Elsevier, vol. 89(C), pages 730-742.
    16. Ahsan, Syed M. & Khan, Hassan A. & Hassan, Naveed-ul & Arif, Syed M. & Lie, Tek-Tjing, 2020. "Optimized power dispatch for solar photovoltaic-storage system with multiple buildings in bilateral contracts," Applied Energy, Elsevier, vol. 273(C).
    17. Wen, Shuli & Lan, Hai & Hong, Ying-Yi & Yu, David C. & Zhang, Lijun & Cheng, Peng, 2016. "Allocation of ESS by interval optimization method considering impact of ship swinging on hybrid PV/diesel ship power system," Applied Energy, Elsevier, vol. 175(C), pages 158-167.
    18. Gul, Eid & Baldinelli, Giorgio & Bartocci, Pietro & Shamim, Tariq & Domenighini, Piergiovanni & Cotana, Franco & Wang, Jinwen & Fantozzi, Francesco & Bianchi, Francesco, 2023. "Transition toward net zero emissions - Integration and optimization of renewable energy sources: Solar, hydro, and biomass with the local grid station in central Italy," Renewable Energy, Elsevier, vol. 207(C), pages 672-686.
    19. Sachs, Julia & Sawodny, Oliver, 2016. "Multi-objective three stage design optimization for island microgrids," Applied Energy, Elsevier, vol. 165(C), pages 789-800.
    20. Lai, Chun Sing & Locatelli, Giorgio, 2021. "Economic and financial appraisal of novel large-scale energy storage technologies," Energy, Elsevier, vol. 214(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:14:y:2021:i:3:p:645-:d:488237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.