We need to investigate the proper power mix in Korean electricity market by examining the economic feasibility of nuclear power generation considering prospects of climate change convention. This will enable us to evaluate the current government polic...
We need to investigate the proper power mix in Korean electricity market by examining the economic feasibility of nuclear power generation considering prospects of climate change convention. This will enable us to evaluate the current government policy and to be prepared for the changing environment of energy field in the future. For this purpose, our research is done as following: First, we review each countries' preparation for the climate change convention with a brief introduction to current climate change convention and its future. Second, we considered renewable energy and its potential contribution to power energy mix with a view to its role as an alternative to the traditional fossil fuel for the preparation of climate change agreement. We also examined the related issues such as RPS (renewable portfolio standards), RPA (renewable portfolio agreement), Feed-in Tariff, etc. Third, each types of power generation facilities are examined to find a best power mix with the consideration of greenhouse gas emission using WASP and POWRSYM model. In this process, we make comments on various types of uncertainties identified. Finally, we derive some policy implications for government and nuclear power service providers for the future role of nuclear power in Korean electricity market.
Supplying low priced energy without interruption will be a very important issue for public welfare, international competitiveness of domestic companies and even for national securities. Most of the countries on the glove try to avoid the use of fossil fuel to reduce greenhouse gas emission and actively implement many types of policies such as introducing various kinds of renewable energy sources.
In this effort, advanced countries are trying to develop non-carbon energy technologies such as hydrogen and fuel cell. Nuclear power which does not produce any carbon dioxide becomes to draw new attention in this effort of reducing the use of fossil fuel for economic and technological reasons.
In our research, we carefully examined whether new and renewable energy sources could be a practical alternative to traditional fossil fuel and nuclear power. We agree upon the potential role of renewable energy in electricity market for the preparation of climate change convention. But we also have to explicitly consider its special characteristics such as non-dispatchability and intermittency in the long-term power supply planning.
Based on the potential progress of climate change convention and the 3rd Fundamental Power Supply Plan, we analyse the various possibilities such as persisting high oil price, possible policy changes in the future including that of renewable energy.
For the potential impact of renewable energy in power supply, we formulate a relatively practical scenario of its future promotion. Result shows that 4 of new 1.4GW size nuclear power plants are expected to be built after year 2020. With the introduction of carbon tax, the number is changed up to 7 with the carbon tax of approximately $14/CO2 Ton.
It is proper to look at the energy issues in a longer term and nation wide problems. The evaluation of the choice of alternative power supply facilities must be based on the positive analysis. From this perspective, this research has accomplished its one purpose. We recommend interested parties to review the role of nuclear power in view of climate change convention and energy securities.
We think that the issue of 'energy efficiency improvement' in power market analysis is another very important topic. However, we do not have considered the issue at this time. A further research seems to be required for this area including consumer's behavior analysis.