Comparative Economic Analysis of RE100 Implementation Methods in South Korea

Sang Hyo An; JongRoul Woo

doi:10.21218/CPR.2022.10.2.062

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2022 Vol.10, Issue 2 Preview Page

Comparative Economic Analysis of RE100 Implementation Methods in South Korea 국내 RE100 이행방안의 경제성 비교분석 연구

30 June 2022. pp. 62-71

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Abstract

The Global RE100 campaign is a one of the voluntary campaign, but it has a lot of influence on domestic companies that have not yet joined the Global RE100. Accordingly, the Korean government introduced the Korean RE100 (K-RE100) system to prepare an institutional mechanism for domestic companies to respond to RE100. However, in Korea, due to the high LCOE of renewable energy and institutional limitations of the power transaction system, there is a limit for companies to implement RE100 in various ways. Therefore, in this study, the implementation cost of RE100 for green tariff, REC purchase, third-party PPA, direct(or corporate) PPA, and self-generation was compared and analyzed to derive the order of implementation with the net present value (NPV) of costs incurred over 20 years. As a result, self-construction was analyzed as the most economical method, but the implementation through the green tariff seemed to be the most realistic implementation method so far. However, considering the gradually falling LCOE, third-party PPA and direct PPA could be secured competitiveness against green tariff in 2025 and 2026. Then it could allow the companies to have various portfolios for implementation of RE100.

Keywords

RE100

Green Tariff

Power Purchase Agreement

Net Present Value

LCOE

Photovoltaic

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Information

Publisher :Korea Photovoltaic Society
Publisher(Ko) :한국태양광발전학회
Journal Title :Current Photovoltaic Research
Volume : 10
No :2
Pages :62-71
Received Date : 2022-05-27
Accepted Date : 2022-06-08
DOI :https://doi.org/10.21218/CPR.2022.10.2.062

Current Photovoltaic Research ISSN:2288-3274(Print) 2508-125X(Online)

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