Economic Feasibility Analysis of the Metropolitan Area Green Heat Project

수도권 그린히트 프로젝트의 경제적 타당성 분석

  • Received : 2015.02.09
  • Accepted : 2015.03.05
  • Published : 2015.03.31


The Metropolitan Area Green Heat Project (MAGHP), which collects unused heat gathered from power plants, steel works, landfills in western Metropolitan area and distribute it to integrated energy business (IEB) companies, is proposed for the purpose of enhancing energy efficiency and providing low-price heat for IEB companies. Therefore, in order to decide on whether to initiate the MAGHP, the economic feasibility analysis of the project is widely demanded. This paper attempts to consider and measure four economic benefits: heat supply benefit, production cost reduction benefit, greenhouse gas mitigation benefit, and air quality improvement benefit. In addition, the paper tries to conduct the economic feasibility analysis. The project requires three-year investment and thirty-year operation. Three important findings emerge from the analysis. First, its net present value is computed to be 1,269 billion won and more than zero. Second, its benefit/cost ratio is calculated to be 1.72 and bigger than 1.0. Third, its internal rate of return is estimated to be 24.26% and larger than the social rate of return, 5.5%. In conclusion, the MAGHP is socially profitable and should be conducted immediately.


Metropolitan Area Green Heat Project;unused heat;economic feasibility;integrated energy business;economic benefits


  1. 경기도청. 유기성폐자원 에너지 활용시설 현황조사 집계표. 2012
  2. 산업통상자원부. 제2차 에너지기본계획. 2014
  3. 산업통상자원부. 제6차 전력수급계획. 2013
  4. 산업통상자원부. 집단에너지 사업계획서 작성기준(산업통상자원부고시 제2012-180호). 2012
  5. 수도권매립지관리공사. 슬러지자원화시설 관련 사업 타당성 보고서. 2013
  6. 수도권매립지관리공사. 잉여매립가스 자원화사업 타당성 조사용역 최종보고서. 2013
  7. 어승섭, 유승훈. 공업용수의 소비자 잉여와 경제적 가치 추정, 국토연구, 2010, 65, 151-162
  8. 유승훈, 박광섭. 서울시 가정용수 공급의 경제적 편익 추정, 한국수자원학회 논문집, 2006, 39(12), 1057-1066
  9. 이승재, 한종호, 유승훈. 수송용 LPG 수요함수의 추정 및 활용, 에너지공학, 2012, 21, 3, 331-338
  10. 한국개발연구원. 공기업․준정부기관 사업 예비 타당성조사 수행을 위한 일반지침 연구. 공공투자관리센터. 2013
  11. 한국개발연구원. 수자원부문사업의 예비타당성조사 표준지침 수정․보완 연구(제4판). 공공투자관리센터. 2008
  12. 한국개발연구원. 예비타당성조사 수행을 위한 일반 지침 수정․보완 연구(제5판). 공공투자관리센터. 2008
  13. 한국개발연구원. 한국형 300MW급 IGCC 실증플랜트 기술개발사업 예비타당성조사. 2010
  14. 한국산업폐자원공제조합. 전국 산업폐기물 발생 및 처리현황(2005-2009). 2012
  15. 한국산업폐자원공제조합. 한국산업폐자원공제조합 민간소각시설 소각열에너지 생산 및 이용현황. 2011
  16. 한국전력거래소. 2012년도 전력시장 분석보고서. 2013
  17. 한국지역난방공사. 수도권 미활용 열에너지 활용 방안 연구. 2013
  18. 한국지역난방공사. 수도권 Green Heat Project 운영주체 검토 보고서. 2014
  19. 한국지역난방공사. 집단에너지사업자 손익 현황(2012년) 업무현황 보고서. 2012
  20. Agrell, P. J., Bogetoft, P., Economic and environmental efficiency of district heating plants. Energy Policy, 2005, 33, 1351-1362
  21. Alexander, D. L., Kern, W., Neill, J., Valuing the consumption benefits from professional sports franchises. Journal of Urban Economics. 2000. 48. 321-337
  22. Brent R. J. Applied Cost-Benefit Analysis, Cheltenham: Edward Elgar. 1995
  23. Ilic, D.D., Trygg, L. Economic and environmental benefits of converting industrial processes to district heating. Energy Conversion and Management, 2014, 87, 305-314
  24. Lazzarin, R., Noro, M. Local or district heating by natural gas: Which is better from energetic, environmental and economic point of views?. Applied Thermal Engineering, 2006, 26, 244-250
  25. Lee, J.-S., Yoo, S.-H. The economic value of residential natural gas consumption: the case of Korea, Energy Sources Part B: Economics, Policy, and Planning, 2013, 8(4), 313-319
  26. Lim K.-M., Lim S.-Y., Yoo S.-H. Estimating the economic value of residential electricity use in Korea using contingent valuation, Energy, 2014, 64, 601-606
  27. Munksgaard, J., Pade, L. L., Fristrup, P. Efficiency gains in Danish district heating. Is there anything to learn from benchmarking?. Energy Policy, 2005, 33, 1986-1997
  28. Torchio, M. F., Genon, G., Poggio, A., Poggio, M. Merging of energy and environmental analyses for district heating systems. Energy, 2009, 34, 220-227

Cited by

  1. Economic Feasibility Analysis of Building Seonam Biogas Combined Heat and Power Plant vol.25, pp.4, 2016,