A Study on the Change in Production Costs and Electricity Tariffs with the Introduction of Renewable Portfolio Standard

RPS(Renewable Portfolio Standard) 제도 도입을 고려한 전기요금변화에 관한 연구

  • 홍희정 (홍익대학 전기정보제어공학과) ;
  • 한석만 (홍익대학 전기정보제어공학과) ;
  • 김발호 (홍익대학 전기정보제어공학과)
  • Published : 2009.04.01

Abstract

Recently, Korea government decided to introduce RPS (Renewable Portfolio Standard) mechanism which requires electricity providers to gradually increase the amount of renewable energy sources such as wind, solar, bioenergy, and geothermal. As a consequence, it is expected that the long-term fuel mix would be changed to result in more expensive production and the increased production costs would be distributed to the rate payers via electricity tariffs. This paper presents the change in long-term fuel mix in year 2020 with the four RPS scenarios of 3%, 5%, 10% and 20%, and the methodologies for collecting the increased production costs through new tariff schedule. The studies on long-term fuel mix have been carried out with the GATE-PRO (Generation And Transmission Expansion Program) optimization package, a mixed-integer program developed by the Korea Energy Economics Institute and Hongik university. Three methodologies for distributing the production costs to the rate payers have also been demonstrated.

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