JAUE2012-072: A Study on the Alternative for Duty Supply Volume Realization of RPS Policy

Abstract

Because of rapid economic growth propelled by the heavy and chemical industries, Korea's energy consumption has increased sharply since the mid-1970s.Total primary energy consumption ranks Korea as the ninth-largest energy-consuming country in the world. So the Korean government is dedicated to renewable energy supply. FIT(Feed in Tariff) Policy was introduced in 2001, but was abolished. In 2012, the government decided to enforce RPS(Renewable Portfolio Standard) Policy.
Through RPS, the government induces the competition of renewable energy industry and eases the financial burden of government. Power producers directly and indirectly use the renewable energy for producing electric power. Their obligation is fulfilled by inducing the production of electricity. Using renewable energy politically expands the power supply. But, despite of the government enforcing a unilateral policy like RPS, domestically 13 power producers allocated Duty Supply Volume face more difficulty. At the beginning of the enforcement policy, Realization of Duty Supply Volume was the biggest problem.
Therefore, this study examines the estimation standard of Duty Supply Volume through mandated renewable energy RPS enforcement, strategy of the power producers to realize the Duty Supply Volume. As a result, this is a plan for the realization of Duty Supply Volume given by government.