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The Impact of Nuclear Power Generation on Wholesale Electricity Market Price

원자력발전이 전력가격에 미치는 영향 분석

  • Jung, Sukwan (Pusan National University, Department of Economics) ;
  • Lim, Nara (Pusan National University, Department of Economics) ;
  • Won, DooHwan (Pusan National University, Department of Economics)
  • 정수관 (부산대학교 경제학부) ;
  • 임나라 (부산대학교 경제학부 대학원) ;
  • 원두환 (부산대학교 경제학부)
  • Received : 2015.05.25
  • Accepted : 2015.12.18
  • Published : 2015.12.31

Abstract

Nuclear power generation is a major power source which accounts for more than 30% of domestic electricity generation. Electricity market needs to secure stability of base load. This study aimed at analyzing relationships between nuclear power generation and wholesale electricity price (SMP: System Marginal Price) in Korea. For this we conducted ARDL(Autoregressive Distributed Lag) approach and Granger causality test. We found that in terms of total effects nuclear power supply had a positive relationship with SMP while nuclear capacity had a negative relationship with SMP. There is a unidirectional Granger causality from nuclear power supply to SMP while the reverse was not. Nuclear power is closely related to SMP and provides useful information for decision making.

Acknowledgement

Supported by : Pusan National University

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