Advertisement

A Study on Determining an Appropriate Power Trading Contracts to Promote Renewable Energy Systems

  • Yeon-Ju Choi
  • Sung-Yul Kim
Regular Paper
  • 8 Downloads

Abstract

The renewable energy systems have been in the spotlight as an alternative for environmental issues. Therefore, the governmental policies are being implemented to spread of promote power generation system using renewable energy in various countries around the world. In addition, Korea has also developed a policy called the power trading contract which can profit from electricity produced from renewable power generation system through Korea Electric Power Corporation (KEPCO) and Korea Power Exchange (KPX). As a result, the power trading contracts can trade power after self-consuming in-house by using small-scale renewable power system for residential customers as well as electricity retailers. The power trading contracts applicable as a small-scale power system have a ‘Net metering (NM)’ and a ‘Power Purchase Agreement (PPA)’, and these two types of power trading contracts trade surplus power, but payment method of each power trading is different. The microgrid proposed in this paper is based on grid connected microgrid using Photovoltaic (PV) system and Energy Storage System (ESS), that supplied power to residential demand, we evaluate the operation cost of microgrid by power demand in each power trading contracts and propose the appropriate power trading contracts according to electricity demand

Keywords

Distributed generation Microgrid Power trading contracts 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Kwon, O. and Yoon, Y.-J., “Optimizing Present Power Distribution System and Novel Renewable Energy Sources for Tamil Nadu in India Using Homer,” International Journal of Precision Engineering and Manufacturing, Vol. 15, No. 8, pp. 1695–1701, 2014.CrossRefGoogle Scholar
  2. 2.
    Xie, H., Zheng, S., and Ni, M., “Microgrid Development in China: A Method for Renewable Energy and Energy Storage Capacity Configuration in a Megawatt-Level Isolated Microgrid,” IEEE Electrification Magazine, Vol. 5, No. 2, pp. 28–35, 2017.CrossRefGoogle Scholar
  3. 3.
    Menconi, M. E., dell’Anna, S., Scarlato, A., and Grohmann, D., “Energy Sovereignty in Italian Inner Areas: Off-Grid Renewable Solutions for Isolated Systems and Rural Buildings,” Renewable Energy, Vol. 93, pp. 14–26, 2016.CrossRefGoogle Scholar
  4. 4.
    Bhandari, B., Poudel, S. R., Lee, K.-T., and Ahn, S.-H., “Mathematical Modeling of Hybrid Renewable Energy System: A Review on Small Hydro-Solar-Wind Power Generation,” International Journal of Precision Engineering and Manufacturing-Green Technology, Vol. 1, No. 2, pp. 157–173, 2014.CrossRefGoogle Scholar
  5. 5.
    Export-Import Bank of Korea, “2016 World Renewable Energy Industry Outlook and Issues,” https://doi.org/www.koreaexim.go.kr/site/program/board/basicboard/view?&boardtypeid=76&menuid=001004001005004%2C001004001005004&pagesize=10&boardid=52203 (Accessed 20 SEP 2018)
  6. 6.
    Aghamohammadi, M. R. and Abdolahinia, H., “A New Approach for Optimal Sizing of Battery Energy Storage System for Primary Frequency Control of Islanded Microgrid,” International Journal of Electrical Power & Energy Systems, Vol. 54, pp. 325–333, 2014.CrossRefGoogle Scholar
  7. 7.
    Li, Y., Choi, S. S., and Vilathgamuwa, D. M., “An Improved Dispatchable Wind Turbine Generator and Dual-Battery Energy Storage System to Reduce Battery Capacity Requirement,” Proc. of Annual Southern Power Electronics Conference, pp.1–6, 2016.Google Scholar
  8. 8.
    Fossati, J. P., Galarza, A., Martín-Villate, A., and Fontán, L., “A Method for Optimal Sizing Energy Storage Systems for Microgrids,” Renewable Energy, Vol. 77, pp. 539–549, 2015.CrossRefGoogle Scholar
  9. 9.
    Petrollese, M., Valverde, L., Cocco, D., Cau, G., and Guerra, J., “Real-Time Integration of Optimal Generation Scheduling with MPC for the Energy Management of a Renewable Hydrogen-Based Microgrid,” Applied Energy, Vol. 166, pp. 96–106, 2016.CrossRefGoogle Scholar
  10. 10.
    Gabbar, H. A. and Abdelsalam, A. A., “Microgrid Energy Management in Grid-Connected and Islanding Modes Based on SVC,” Energy Conversion and Management, Vol. 86, pp. 964–972, 2014.CrossRefGoogle Scholar
  11. 11.
    Bernal-Agustín, J. L., Dufo-López, R., and Rivas-Ascaso, D. M., “Design of Isolated Hybrid Systems Minimizing Costs and Pollutant Emissions,” Renewable Energy, Vol. 31, No. 14, pp. 2227–2244, 2006.CrossRefGoogle Scholar
  12. 12.
    Bhandari, B., Lee, K.-T., Lee, G.-Y., Cho, Y.-M., and Ahn, S.-H., “Optimization of Hybrid Renewable Energy Power Systems: A Review,” International Journal of Precision Engineering and Manufacturing-Green Technology, Vol. 2, No. 1, pp. 99–112, 2015.CrossRefGoogle Scholar
  13. 13.
    Han, G. D., Choi, H. J., Bae, K., and Shim, J. H., “Evaluation of Batteries for Wind-Hybrid Systems in South Korean Islands,” International Journal of Precision Engineering and Manufacturing, Vol. 15, No. 4, pp. 761–768, 2014.CrossRefGoogle Scholar
  14. 14.
  15. 15.
    Industry and Energy Renewable Energy Center, “New & Renewable Energy White Paper,” https://doi.org/www.knrec.or.kr/knrec/dfile/2016%EC%8B%A0%EC%9E%AC%EC%83%9D%EC%97%90%EB%84%88%EC%A7%80%20%EB%B0%B1%EC%84%9C.pdf (Accessed 20 SEP 2018)
  16. 16.
  17. 17.
    Kerdphol, T., Fuji, K., Mitani, Y., Watanabe, M., and Qudaih, Y., “Optimization of a Battery Energy Storage System Using Particle Swarm Optimization for Stand-Alone Microgrids,” International Journal of Electrical Power & Energy Systems, Vol. 81, pp. 32–39, 2016.CrossRefGoogle Scholar
  18. 18.
    Borhanazad, H., Mekhilef, S., Ganapathy, V. G., Modiri-Delshad, M., and Mirtaheri, A., “Optimization of Micro-Grid System Using MOPSO,” Renewable Energy, Vol. 71, pp. 295–306, 2014.CrossRefGoogle Scholar
  19. 19.
    Bae, K. and Shim, J. H., “Economic and Environmental Analysis of a Wind-Hybrid Power System with Desalination in Hong-do, South Korea,” International Journal of Precision Engineering and Manufacturing, Vol. 13, No. 4, pp. 623–630, 2012.CrossRefGoogle Scholar
  20. 20.
    Ciez, R. E. and Whitacre, J., “Comparative Techno-Economic Analysis of Hybrid Micro-Grid Systems Utilizing Different Battery Types,” Energy Conversion and Management, Vol. 112, pp. 435–444, 2016.CrossRefGoogle Scholar
  21. 21.
    Ma, T., Yang, H., Lu, L., and Peng, J., “Optimal Design of an Autonomous Solar-Wind-Pumped Storage Power Supply System,” Applied Energy, Vol. 160, pp. 728–736, 2015.CrossRefGoogle Scholar
  22. 22.
    Zhao, B., Zhang, X., Li, P., Wang, K., Xue, M., et al., “Optimal Sizing, Operating Strategy and Operational Experience of a Stand-Alone Microgrid on Dongfushan Island,” Applied Energy, Vol. 113, pp. 1656–1666, 2014.CrossRefGoogle Scholar
  23. 23.
    Choi, Y.-J. and Kim, S.-Y., “A study on Determining Appropriate Subsidy for Residential PV Generation System,” Proc. of the Korean Institute of Electrical Engineers, pp. 32–34, 2016.Google Scholar

Copyright information

© Korean Society for Precision Engineering 2018

Authors and Affiliations

  1. 1.Department of Electrical EngineeringKeimyung UniversityDeaguRepublic of Korea

Personalised recommendations