Private, Government And Social Cost Of Small-Scale Solar Feed-In-Tariff As An Alternative To Stand- Alone Renewable Portfolio Standard -Using Linear Programming
South Korea adopted Feed-in-tariff (FIT) policy in 2002 but discontinued it by the end of 2011 on the grounds of excessive government budget spending. It switched to Renewable Portfolio Standard (RPS) in 2012. However that change has been devastating to small energy developers who could not participate in auction market due to high development and transaction cost. As a result, the Green Party, Korean Solar Energy Association and Korean media argued for introduction of FIT, at least for the small-scale solar developers. This paper analyzes the optimal renewable energy portfolio composition in South Korea each year from 2016 to 2024 (the period of mandatory renewable energy supply) and policy costs both under stand-alone RPS policy and the proposed RPS system with the small-scale solar (under 100 kw) FIT using two market structure scenarios.
Index Terms- RPS, Solar Energy, FIT, Linear Programming, Policy Cost