Fairness-based Bidding Model for Renewable Portfolio Standard Policy in South Korea Standard Policy in South Korea

Abstract

The share of renewable energy has already exceeded that of nuclear power in the United Kindom, Germany (by 30%), and Japan (10%), whereas the supply of alternative energy in South Korea is significantly less than that of advanced countries. In 2011, South Korea ended the feed-in-tariff operation and implemented renewable portfolio standards (RPSs), which require producers or sellers of electricity to supply a specified percentage of electricity generated or sold from renewable energy sources. Each operator receives renewable energy certificates corresponding to the amount of electricity supplied from renewable energy sources, allowing them to sell excess electricity or buy electricity to manage a deficit. Although the RPS ensures fairness by specifying separate quantities that can be sold based on each operator’s capacity, it focuses more on effectiveness. In this study, RPSs are investigated from the perspectives of effectiveness and fairness, and a new bidding model that further considers fairness is developed. © 2022, The Author(s) under exclusive licence to The Korean Institute of Electrical Engineers.