| Title |
A Study on the Estimation of Marginal Cost of the Renewable Energy Certificate |
| Authors |
곽규형(Kyu-Hyeong Kwag) ; 김태현(Tae-Hyun Kim) ; 신한솔(Han-Sol Shin) ; 김수영(David Kim) ; 김욱(Wook Kim) |
| DOI |
https://doi.org/10.5370/KIEE.2020.69.8.1183 |
| Keywords |
Renewable Energy Certificate; Renewable Portfolio Standard; Renewable Energy Source; Marginal Cost Pricing; Bi-level Programming |
| Abstract |
The Korean government currently implements Renewable Portfolio Standard(RPS) and the price of the Renewable Energy Certificate(REC) affects the profits and costs of various market players. But uncertainty over the price trend of the REC, such as the recent plunge in REC prices in the spot market and the announcement of an increase in RPS target, is increasing. However, research on the methodology of estimating the price of the REC has not been actively conducted compared to its importance.
Therefore, the research on estimating marginal costs for REC is significant in that it can not only give market players the appropriate price signal but also act on various decisions based on the marginal costs derived. In this study, a mathematical model in the form of bi-level programming is established to reflect Korea’s RPS system mechanisms and to take into account changes in power market prices as large-scale renewable energy generation facilities are deployed, and then marginal costs of REC are derived using a mathematical model. It could be used for design and analysis of the REC market, such as the supply and demand situation of the market, the optimal renewable energy sources portfolio, and the impact of the RPS system mechanism |