Alternatives to price compensation systems such as renewable energy output restrictions and ESS and synchronous generators are needed

Alternatives to price compensation systems such as renewable energy output restrictions and ESS and synchronous generators are needed
Alternatives to price compensation systems such as renewable energy output restrictions and ESS and synchronous generators are needed

Held a policy discussion to solve the renewable energy output limit
Discussion on system and technology to improve new and renewable energy governance

The ‘Policy Debate for Resolving Renewable Energy Output Limitations’ was held on September 22 at the National Assembly Building Room 306.

[일렉트릭파워 이재용 기자] As the proportion of renewable energy generation using wind power and solar power as energy sources increases, the excess power supply becomes more frequent, and the output limit is also increasing accordingly.

This is the voice of concern among industry officials that it is acting as an adverse effect that delays the spread of renewable energy, and points out that a solution is urgently needed.

On September 22, Rep. Kim Seong-hwan of the Democratic Party of Korea held a ‘Policy Discussion for Resolving Renewable Energy Output Limitations’ at the National Assembly Building No. 306 in collaboration with Climate Solutions and Next.

In the discussion on this day, ▲New/renewable energy governance analysis and improvement plan (Professor Seon Jiwon, Faculty of Law, Kwangwoon University) ▲Solution of Jeju output limitation for Curtailment Free Island (CEO Seungwan Kim of Next) ▲Independent power system operation for expansion of renewable energy 3 cases of importance (Han Ga-hee, Climate Solutions Researcher) were presented.

Rep. Kim Seong-hwan said, “We cannot delay the expansion of renewable energy.” “Major global companies have declared RE100 and are demanding products made from renewable energy. there,” he said.

He emphasized, “In order to quickly respond to the global trend of expanding renewable energy and to enhance national competitiveness, the only way to break through is to expand domestic renewable energy.”

After the main presentations, Seung-hye Jeong, Head of Power System Innovation Division of the Ministry of Trade, Industry and Energy, Cheol-hui Lee, Director of KEPCO’s Grid Accounting Department, Chang-geun Lee, Head of Grid Planning Team, Power Exchange, Yun-seong Ko, Head of Low Carbon Policy Division at Jeju Provincial Office, Beom-seok Kim, Chairman of TC Subcommittee Buo-shik of Korea Wind Power Industry Association, Jeong-rim Ha, Taerim Law Firm A designated discussion was held in which lawyers participated.

Renewable Energy Plan Rationalization Governance Alternative
Jeju Island has the fastest renewable energy spread nationwide, leading to carbon neutrality in Korea. As a result of steadily increasing the supply of renewable energy since the announcement of the ‘CFI 2030’ vision, the proportion of renewable energy generation has exceeded 18%, which is a remarkable achievement considering that the proportion of renewable energy generation in Korea is about 7%.

However, there are concerns in the renewable energy industry that it is a factor hindering the expansion of renewable energy as the excess power supply and the resulting output limit are also rapidly increasing due to the increase in renewable energy.
Jeju’s output limit, which was limited to three times in 2015, has been done 225 times until last year, and it is expected that it will exceed 60 times in the first half of this year alone, reaching an all-time high. It is analyzed that such an output limitation phenomenon is not limited to Jeju Island, but may also occur on land.

Professor Seon Ji-won pointed out that it is necessary to discuss legislation and governance for a harmonious ecosystem in a situation where new and renewable energy power generation facilities are expected to be continuously increased in the future.

In particular, he said that it is a matter to consider whether the Korea Electric Power Exchange (KPX) restricts competition in the energy market by restricting power generation for certain types of power generation projects for the safety of the power system. He explained that the issue of whether the fair and transparent access rights of people can be guaranteed should be discussed.

Professor Seon Ji-won emphasized, “The use of synchronous ancestors, ESS installation and price compensation system for ESS should be reviewed, and governance and institutional alternatives to rationalize new and renewable energy plans at the national level should be discussed.”

It is explained that there must be a way to technically solve the problem of imbalance in energy supply and demand through the installation and operation of ESS and to minimize the output limitation of new and renewable energy through the operation of the synchronous generator.

Professor Seon suggested that there should be a provision for re-election by law to ensure that the information on the loss of operating profit incurred by new and renewable energy operators due to the restriction measures should be prepared by law.

He also suggested that it is necessary to clarify the rules for transparent and equal treatment of new and renewable energy operators.

Professor Seon Ji-won said, “It should be stipulated that renewable energy operators should be treated equally in relation to access to transmission and distribution networks. It should be provided to new and renewable energy generators who will be instructed to take restrictions.”

Power structure improvement plan to increase flexibility should follow
As a result of analysis of the technical scenario to solve the output limitation, Next CEO Seungwan Kim said, “When flexible resources such as storage devices and synchronous generators are expanded and introduced according to the CFI 2030 scenario, the utilization rate of thermal power generation facilities owned by KEPCO power generation subsidiaries in 2034 will be in 2022. “The introduction of new flexible resources such as storage devices and synchronous generators will lead to an increase in the utilization rate of renewable energy power generation facilities. It is predicted that it will decrease by 19%, and the base annual utilization rate in 2034 may drop to the 20% level.”

CEO Kim explains that it is possible to achieve the CFI 2030 policy goal while maintaining the output limit rate at 3% by investing only a maximum of 5.7% of the total system cost by 2034 compared to the status quo scenario. It has been confirmed that the cost increase resulting from this can be offset by reducing fuel and carbon costs.

Gahee Han, a climate solution researcher, gave a presentation on the operation of the power system, and pointed out the problems of the power system structure in which KEPCO, centered on thermal power and nuclear power generation assets, exerts a monopoly position and influence.

Researcher Gahee Han said, “The current power system, where KEPCO exerts its monopoly position and influence in the policy-making process, lacks financial incentives to expand renewable energy. The old market structure is chronically continuing,” he explained.

A researcher predicts that if flexible resources are distributed to solve the problem of output limitation as in the scenario presented in the report, the utilization rate of renewable energy generation facilities will increase and the utilization rate of thermal power generation facilities will decrease. He pointed out that the active introduction of ESS and renewable energy would put him in a financially inconvenient situation.

Researcher Gahee Han said, “Measures such as increasing the independence of the KPX in the decision-making process and further blocking the financial connection between KEPCO’s power generation and grid divisions must be taken in advance. An environment in which measures can be taken to increase the utilization of resources and renewable energy should be created.”

Rep. Kim Seong-hwan, who hosted the discussion, said, “It is important to prepare a technical plan to solve the problem of renewable energy output limitation and actively promote the improvement of related systems. In order to create an environment in which renewable energy business operators can invest with confidence, it is also necessary to prepare a way to provide a justifiable basis for compensation for output restrictions as soon as possible,” he said.

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The article is in Korean

Tags: Alternatives price compensation systems renewable energy output restrictions ESS synchronous generators needed

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