| Title |
Economic Evaluation and Sensitivity Analysis of Solar PV Generation Business from the Perspective of Solar PV Generation Owners according to Fluctuation Scenarios of SMP and the Price of REC |
| Authors |
Chan-Ho Moon ; Bo-Sung Kwon ; Su-Hwa Woo ; Dong-Jin Bae ; Kyung-Bin Song |
| DOI |
http://doi.org/10.5207/JIEIE.2020.34.10.036 |
| Keywords |
Renewable Energy; Solar PV; System Marginal Price; Renewable Energy Certificate |
| Abstract |
South Korea is seeking to promote the supply of renewable energy through its 3020 renewable energy policy. Renewable Energy Portfolio Standard(RPS) is a system that grants electricity suppliers with a mandatory supply of renewable energy in order to promote the supply of renewable energy, and supply of renewable energy is certificated by issuing Renewable Energy Certificate(REC). The solar PV generation business is long-term business and owners make profits such as System Marginal Price(SMP) and REC through solar PV generation. It is necessary to consider the fluctuation of SMP and the price of REC in order to determine the feasibility of solar PV generation business from the perspective of the owners. Therefore, the economic evaluation of solar PV generation business from the perspective of the owners is conducted applying price fluctuation scenarios of SMP and the price of REC. Through the economic evaluation of solar PV generation business, the owners decides whether to implement the business and the policy maker can decide the appropriate policy direction. |