Estimation of the inconvenience cost of a rolling blackout in the residential sector: The case of South Korea

South Korea is experiencing a serious imbalance in electricity supply and demand, which caused a blackout in 2011. The Korean government has planned to perform a rolling blackout to prevent large-scale blackouts when the electricity supply reserve margin reaches less than 1 million kW. This study attempts to estimate the inconvenience cost of household customers from a rolling blackout by using survey data. To this end, we apply a contingent valuation method (CVM) to measure their willingness-to-pay (WTP) in order to avoid a rolling blackout, i.e. the suspension of electricity supply. In this study, we estimate the inconvenience costs stemming from both an unannounced and an announced rolling blackout. As a result, we find that the inconvenience cost of a sudden rolling blackout is estimated at 3900.67 KRW (3.56 USD) per month per household, while that of an announced rolling blackout stands at 3102.95 KRW (2.83 USD). This difference in costs shows that people place value in receiving prior notice of a blackout, and that inconvenience costs of between 166.0 billion KRW (151.6 million USD) and 174.3 billion KRW (159.2 million USD) per year can be reduced nationwide by giving households advance notice of a planned rolling blackout.     

Development of an economical model to determine an appropriate feed-in tariff for grid-connected solar PV electricity in all states of Australia

Australia is a country with a vast amount of natural resources including sun and wind. Australia lies between latitude of 10–45°S and longitude of 112–152°E, with a daily solar exposure of between less than 3 MJ/(m² day) in winter and more than 30 MJ/(m² day) in summer.Global solar radiation in Australia varies between minimum of 3285 MJ/(m² year) in Hobart to 8760 MJ/(m² year) in Northern Territory. As a result of this wide range of radiation level there will be a big difference between costs of solar PV electricity in different locations.A study we have recently conducted on the solar PV electricity price in all states of Australia. For this purpose we have developed an economical model and a computer simulation to determine the accurate unit price of grid-connected roof-top solar photovoltaic (PV) electricity in A$/kWh for all state of Australia. The benefit of this computer simulation is that we can accurately determine the most appropriate feed-in tariff of grid-connected solar PV energy system. The main objective of this paper is to present the results of this study.A further objective of this paper is to present the details of the unit price of solar PV electricity in the state of Victoria in each month and then to compare with electricity price from conventional power systems, which is currently applied to this state. The state Victoria is located south of Australia and in terms of sun radiation is second lowest compared with the other Australian states.The computer simulation developed for this study makes it possible to determine the cost of grid-connected solar PV electricity at any location in any country based on availability of average daily solar exposure of each month as well as economical factors of the country.     

Exergoeconomic analysis of glazed hybrid photovoltaic thermal module air collector

In this paper, an exergoeconomic analysis has been carried out and on the basis of this analysis it has been concluded that in terms of energy saving the glazed hybrid photovoltaic thermal (PVT) module air collector offers a greater potential compared to PV module. The experimental validation for glazed hybrid PVT module air collector has also been performed and it has been observed that there is a good agreement between the theoretical and experimental values with correlation coefficient in range of 0.96–0.99 and root mean square percentage deviation in range of 2.38–7.46. The experiments have been carried out on clear days during the month July 2010 to June 2011. For the validation of theoretical results with experimental results, a typical day of winter month (December 08, 2010) and summer month (April 11, 2011) has been considered. An experimental uncertainty for December and April month is 11.6% and 2.1% respectively. The annual overall thermal energy and exergy gain are 1252.0 kWh and 289.5 kW h respectively. The annual net electrical energy savings by glazed hybrid PVT module air collector is 234.7 kW h.     

Calculation of bright roof-tops for solar PV applications in Dhaka Megacity,Bangladesh

Bangladesh has already been known as the country of power crisis. Although the country's electricity generation capacity is 4275 MW, around 3000–3500 MW of electricity can be generated against the demand of more than 5000 MW. The country's power is being generated mostly with conventional fuel (82% indigenous natural gas, 9% imported oil, 5% coal) and renewable sources (4% hydropower and solar). But recently a remarkable decline of the indigenous gas takes place, which rapidly aggravates electricity generation. Dhaka, the capital as well as prime city of the country with its nearly 14 million populations faces the worst situation due to the shortfall of electricity. Around 1000–1200 MW of electricity is supplied to Dhaka Megacity, while the existing demand is nearly 2000 MW. As a result frequent load shedding takes place and most of the service sectors in the city are interrupted, which has recently created immense dissatisfaction among the city-dwellers. Given the city's power crisis and geophysical situations, applications of either stand-alone or grid connected PV systems would be very effective and pragmatic for power supplement. The conservative calculation of bright roof-tops from the Quickbird Scene 2006 of Dhaka city indicates that the city offers 10.554 km² of bright roof-tops within the Dhaka City Corporation (DCC) ward area (134.282 km²). The application of stand-alone PV systems with 75 Wp solar modules can generate nearly 1000 MW of electrical power, which can substantially meet the city's power demand.     

Economic feasibility of solar-powered led roadway lighting

The optical efficacy of light emitting diode (LED) has exceeded 72 lm/W in 2006. This implies that energy can be saved about 75%, as compared to mercury lamps widely used in roadway lighting. In some remote areas where the grid power cannot reach, independent solar-powered lighting using high-power LED provides a promising solution. However, the cost of solar photovoltaic device may cause the application of solar-powered LED roadway lighting to be not economically feasible.The present study investigates the design of the solar-powered LED roadway lighting using high-power LED luminaire (100 W) and estimates the installation cost for a 10 km highway with 2 lanes. LED luminaries are installed on both side of the road with staggered arrangement. The pole distance is 30 m. The cost comparison of LED lighting using grid and solar power with the conventional mercury lamps was carried out. It shows that the installation cost is 22 million USD for LED powered by grid power and 26 million USD for solar-powered. The total installation cost of conventional mercury lighting is 18 million USD. The excess cost of LED mainly comes from the cost of LED lamp and solar PV. But, the cost of power generation and electrical transmission line can be greatly reduced since about 75% energy was saved for LED. This permits the use of smaller copper wire and shorter line length for solar-powered system which in turn saves installation cost. The payback time for the excess investment of LED is 2.2 years for LED using grid power and 3.3 years for LED using solar power.     

Forecasting annual gross electricity demand by artificial neural networks using predicted values of socio-economic indicators and climatic conditions: Case of Turkey

In this work, the annual gross electricity demand of Turkey was modeled by multiple linear regression and artificial neural networks as a function population, gross domestic product per capita, inflation percentage, unemployment percentage, average summer temperature and average winter temperature. Among these, the unemployment percentage and the average winter temperature were found to be insignificant to determine the demand for the years between 1975 and 2013. Next, the future values of the statistically significant variables were predicted by time series ANN models, and these were simulated in a multilayer perceptron ANN model to forecast the future annual electricity demand. The results were validated with a very high accuracy for the years that the electricity demand was known (2007–2013), and they were also superior to the official predictions (done by Ministry of Energy and Natural Resources of Turkey). The model was then used to forecast the annual gross electricity demand for the future years, and it was found that, the demand will be doubled reaching about 460 TW h in the year 2028. Finally, it was concluded that the approach applied in this work can easily be implemented for other countries to make accurate predictions for the future.     

National-scale wave energy resource assessment for Australia

A nationally consistent wave resource assessment is presented for Australian shelf (<300 m) waters. Wave energy and power were derived from significant wave height and period, and wave direction hindcast using the AusWAM model for the period 1 March 1997 to 29 February 2008 inclusive. The spatial distribution of wave energy and power is available on a 0.1° grid covering 110–156° longitude and 7–46° latitude. Total instantaneous wave energy on the entire Australian shelf is on average 3.47 PJ. Wave power is greatest on the 3000 km-long southern Australian shelf (Tasmania/Victoria, southern Western Australia and South Australia), where it widely attains a time-average value of 25–35 kW m^?1 (90th percentile of 60–78 kW m^?1), delivering 800–1100 GJ m^?1 of energy in an average year. New South Wales and southern Queensland shelves, with moderate levels of wave power (time-average: 10–20 kW m^?1; 90th percentile: 20–30 kW m^?1), are also potential sites for electricity generation due to them having a similar reliability in resource delivery to the southern margin. Time-average wave power for most of the northern Australian shelf is <10 kW m^?1. Seasonal variations in wave power are consistent with regional weather patterns, which are characterised by winter SE trade winds/summer monsoon in the north and winter temperate storms/summer sea breezes in the south. The nationally consistent wave resource assessment for Australian shelf waters can be used to inform policy development and site-selection decisions by industry.     

Willingness to pay for green electricity in Korea: A contingent valuation study

Green electricity is energy that is generated from renewable energy sources such as solar power, wind power, small-scale hydroelectric power, tidal power, and biomass power. These sources mostly do not produce pollutants and are considered environmentally friendly. However, considering the current state of technology, they are more costly. Government should take visible actions to compensate for the increased production costs. This paper attempts to apply a contingent valuation (CV) method to obtain at least a preliminary evaluation of the benefits that ensue from the introduction of the policy that raises the percentage of green electricity consumption from 0.2% of the total electricity supply to 7% by 2011. Overall, the CV survey was successful in eliciting the willingness to pay (WTP) for green electricity considering that the CV method operated within respondents’ abilities to answer and the WTP estimates were statistically significant. The monthly mean WTP estimates from parametric and non-parametric methods were KRW 1681 (USD 1.8) and KRW 2072 (USD 2.2), respectively. The estimates of the annual benefits to relevant residents amounted to KRW 150.5 billion (USD 157.5 million) and KRW 185.6 billion (USD 194.2 million), respectively.     

Production possibility frontier analysis of biodiesel from waste cooking oil

This paper presents an assessment of the productive efficiency of an advanced biodiesel plant in Japan using Data Envelopment Analysis (DEA). The empirical analysis uses monthly input data (waste cooking oil, methanol, potassium hydroxide, power consumption, and the truck diesel fuel used for the procurement of waste cooking oil) and output data (biodiesel) of a biodiesel fuel plant for August 2008–July 2010. The results of this study show that the production activity with the lowest cost on the biodiesel production possibility frontier occurred in March 2010 (production activity used 1.41 kL of waste cooking oil, 0.18 kL of MeOH, 16.33 kg of KOH, and 5.45 kW h of power), and the unit production cost in that month was 18,517 yen/kL. Comparing this efficient production cost to the mean unit production cost on the production possibility frontier at 19,712 yen/kL, revealed that the cost of producing 1 kL of biodiesel could be reduced by as much as 1195 yen. We also find that the efficiency improvement will contribute to decreasing the cost ratio (cost per sale) of the biodiesel production by approximately 1% during the study period (24 months) between August 2008 and July 2010.     

Viability of solar photovoltaics as an electricity generation source for Jordan

Viability of solar photovoltaics as an electricity generation source for Jordan was assessed utilizing a proposed 5 MW grid-connected solar photovoltaic power plant. Long-term (1994–2003) monthly average daily global solar radiation and sunshine duration data for 24 locations – distributed all over the country – were studied and analyzed to assess the distribution of radiation and sunshine duration over Jordan, and formed an input data for evaluation and analysis of the proposed plant's electricity production and economic feasibility. It was found that – depending on the geographical location – the global solar radiation on horizontal surface varied between 1.51 and 2.46 MWh/m²/year with an overall mean value of 2.01 MWh/m²/year for Jordan. The sunshine duration was found to vary – according to the location – between 8.47 and 9.68 h/day, with a mean value of 9.07 h/day and about 3311 sunshine hours annually for Jordan. The annual electricity production of the proposed plant varied depending on the location between 6.886 and 11.919 GWh/year, with a mean value of 9.46 GWh/year. The specific yield varied between 340.9 and 196.9 kWh/m², while the mean value was 270.59 kWh/m². Analysis of the annual electricity production of the plant, the specific yield, besides the economic indicators i.e., internal rate of return, simple payback period, years– to- positive cash flow, net present value, annual life cycle saving, benefit–cost ratio, and cost of energy – for all sites – showed that Tafila and Karak are the most suitable sites for the solar photovoltaic power plant's development and Wadi Yabis is the worst. The results also showed that an average of 7414.9 tons of greenhouse gases can be avoided annually utilizing the proposed plant for electricity generation at any part of Jordan.     

Calculating energy-saving potentials of heat-island reduction strategies

We have developed summary tables (sorted by heating- and cooling-degree-days) to estimate the potential of heat-island reduction (HIR) strategies (i.e., solar-reflective roofs, shade trees, reflective pavements, and urban vegetation) to reduce cooling-energy use in buildings. The tables provide estimates of savings for both direct effect (reducing heat gain through the building shell) and indirect effect (reducing the ambient air temperature).In this analysis, we considered three building types that offer the most savings potential: residences, offices, and retail stores. Each building type was characterized in detail by Pre-1980 (old) or 1980⁺ (new) construction vintage and with natural gas or electricity as heating fuel. We defined prototypical-building characteristics for each building type and simulated the effects of HIR strategies on building cooling- and heating-energy use and peak power demand using the DOE-2.1E model and weather data for about 240 locations in the US. A statistical analysis of previously completed simulations for five cities was used to estimate the indirect savings. Our simulations included the effect of (1) solar-reflective roofing material on building (direct effect), (2) placement of deciduous shade trees near south and west walls of building (direct effect), and (3) ambient cooling achieved by urban reforestation and reflective building surfaces and pavements (indirect effect).Upon completion of estimating the direct and indirect energy savings for all the locations, we integrated the results in tables arranged by heating- and cooling-degree-days. We considered 15 bins for heating-degree-days, and 12 bins for cooling-degree-days. Energy use and savings are presented per 1000 ft² of roof area.In residences heated with gas and in climates with greater than 1000 cooling-degree-days, the annual electricity savings in Pre-1980 stock ranged from 650 to 1300 kWh/1000 ft²; for 1980⁺ stock savings ranged 300–600 kWh/1000 ft². For residences heated with electricity, the savings ranged from 350 to 1300 kWh/1000 ft² for Pre-1980 stock and 190–600 kWh/1000 ft² for 1980⁺ stocks. In climates with less than 1000 cooling-degree-days, the electricity savings were not significantly higher than winter heating penalties. For gas-heated office buildings, simulations indicated electricity savings in the range of 1100–1500 kWh/1000 ft² and 360–700 kWh/1000 ft², for Pre-1980 and 1980⁺ stocks, respectively. For electrically heated office buildings, simulations indicated electricity savings in the range of 700–1400 kWh/1000ft² and 100–700 kWh/1000 ft², for Pre-1980 and 1980⁺ stocks, respectively. Similarly, for gas-heated retail store buildings, simulations indicated electricity savings in the range of 1300–1700 kWh/1000 ft² and 370–750 kWh/1000 ft², for Pre-1980 and 1980⁺ stocks, respectively. For electrically heated retail store buildings, simulations indicated electricity savings in the range of 1200–1700 kWh/1000 ft² and 250–750 kWh/1000 ft², for Pre-1980 and 1980⁺ stocks, respectively.     

Biomass and central receiver system (CRS) hybridization: Volumetric air CRS and integration of a biomass waste direct burning boiler on steam cycle

Concentrated solar power (CSP) plants generate an almost continuous flow of fully dispatchable “renewable” electricity and can replace the present fossil fuel power plants for base load electricity generation. Nevertheless, actual CSP plants have moderate electricity costs, in most cases quite low capacity factors and transient problems due to high inertia. Hybridization can help solve these problems and, if done with the integration of forest waste biomass, the “renewable” goal can be maintained, with positive impact on forest fire reduction. Local conditions, resources and feed in tariffs have great impact on the economical and technical evaluation of hybrid solutions; one of the premium European locations for this type of power plants is the Portuguese Algarve region.Due to the concept innovation level, conservative approaches were considered to be the best solutions. In this perspective, for a lower capital investment 4 MWe power plant scale, the best technical/economical solution is the hybrid CRS/biomass power plant HVIB3S4s with CS3 control strategy. It results in a levelized electricity cost (LEC) of 0.146 €/kWh, with higher efficiency and capacity factor than a conventional 4 MWe CRS. A larger 10 MWe hybrid power plant HVIB3S10s could generate electricity with positive economical indicators (LEC of 0.108 €/kWh and IRR of 11.0%), with twice the annual efficiency (feedstock to electricity) and lower costs than a conventional 4 MWe CRS. It would also lead to a 17% reduction in biomass consumption (approximately 12,000 tons less per year) when compared with a typical 10 MWe biomass power plant – FRB10; this would be significant in the case of continuous biomass price increase.     

Field test of a solar seawater desalination unit with triple-effect falling film regeneration in northern China

Based on the mechanism of falling film evaporation condensation, a new four-stage distillation unit with triple-effect regeneration has been designed, constructed and field tested. The seawater desalination system is driven by 80 m² all-glass vacuum tube solar collection system with an additional 1 kW wind power system to provide electricity for pumps. The field testing and monitoring of the system had been carried out under the real weather condition for 2 years. The results show that the water production of the system for per unit of solar collector area could reach up to more than 12 kg/m²/day under the fine weather conditions. Water production of the system was stable in long period and the annual production could reach to 250 tons in northern China. The economic performance of the system is also discussed. The cost of water production is estimated approximately 4.6 Dollar/ton for the 15-year service life.     

Review of cost estimates for uranium recovery from seawater

The 4.5 billion tonnes of uranium in seawater is sufficient to power the world's reactor fleet for 13,000 years. For decades, the transformative potential of this enormous resource has prompted interest in technologies for recovering uranium from seawater. Since the 1960s, though, cost analyses of such technologies have failed to convincingly demonstrate a cost-competitive alternative to conventional uranium recovery from terrestrial mining. Hence, uranium from seawater has come to be considered as a backstopping technology that has the potential to establish a price ceiling for the uranium resource. Such an upper bound is valuable because it removes uncertainty surrounding uranium prices when developing and deploying nuclear power systems. This paper reviews cost estimates as the technology has evolved over the past five decades. During this time, systems that actively moved seawater gave way to those where the adsorbent sits passively in seawater. The adsorbent material changed from hydrous titanium oxide to the higher-capacity amidoxime ligand. Early efforts used amidoxime grafted onto an acrylic substrate, which was later replaced by polyethylene because of its increased durability and lower cost. The review shows that capacity, in grams of U per kilogram of adsorbent, is a strong driver of cost along with reusability of the adsorbent. The most recent estimates reviewed are seen to place the U production cost at $400–$1000/kg of U, several times higher than the 2014 spot market price, which has remained near or below $100/kg of U.     

Power,placement and LEC evaluation to install CSP plants in northern Chile

Chile is expecting a 5.4% growth in energy consumption per year until 2030, requiring new and better solutions for the upward trend of its electricity demand. This state leads to select and study one of the potential alternatives for electricity generation: concentrated solar power (CSP) plants. Such renewable technology found in Chile a very favorable condition. Recent researches indicate Atacama Desert as one of the best regions for solar energy worldwide, having an average radiation higher than in places where CSP plants are currently implemented, e.g. Spain and USA. The aim of this study is to present an analysis of levelized energy cost (LEC) for different power capacities of CSP plants placed in distinct locations in northern Chile. The results showed that CSP plants can be implemented in Atacama Desert with LECs around 19 ¢US$/kWh when a gas-fired backup and thermal energy storage (TES) systems are fitted. This value increases to approximately 28 ¢US$/kWh if there is no backup system.     

Residential building envelope heat gain and cooling energy requirements

We present the energy use situation in Hong Kong from 1979 to 2001. The primary energy requirement (PER) nearly tripled during the 23-year period, rising from 195,405 TJ to 572,684 TJ. Most of the PER was used for electricity generation, and the electricity use in residential buildings rose from 7556 TJ (2099 GWh) to 32,799 TJ (9111 GWh), an increase of 334%. Air-conditioning accounted for about 40% of the total residential sector electricity consumption. A total of 144 buildings completed in the month of June during 1992–2001 were surveyed. Energy performance of the building envelopes was investigated in terms of the overall thermal transfer value (OTTV). To develop the appropriated parameters used in OTTV calculation, long-term measured weather data such as ambient temperature (1960–2001), horizontal global solar radiation (1992–2001) and global solar radiation on vertical surfaces (1996–2001) were examined. The OTTV found varied from 27 to 44 W/m² with a mean value of 37.7  W/m². Building energy simulation technique using DOE-2.1E was employed to determine the cooling requirements and hence electricity use for building envelope designs with different OTTVs. It was found that cooling loads and electricity use could be expressed in terms of a simple two-parameter linear regression equation involving OTTV.     

Energy storage in remote area power supply (RAPS) systems

Preliminary cost analyses indicate that hybrid RAPS systems are more economically attractive as a means to provide electricity to remote villages than are alternatives such as 24 h diesel generation. A hybrid remote area power supply (RAPS) system is being deployed to provide 24 h electricity to villages in the Amazon region of Peru. The RAPS system consists of modules designed to provide 150 kWh per day of utility grade ac electricity over a 24 h period. Each module contains a diesel generator, battery bank using heavy-duty 2 V VRLA gelled electrolyte batteries, a battery charger, a photovoltaic array and an inverter. Despite early difficulties, the system in the first village has now commenced operation and the promise of RAPS schemes as a means for providing sustainable remote electrification appears to be bright.     

Economic feasibility of large community feed-in tariff-eligible wind energy production in Nova Scotia

Nova Scotia, Canada's community feed-in tariff (COMFIT) scheme is the world's first feed-in tariff program specifically targeting locally-based renewable energy projects. This study investigated selected turbine capacities to optimize electricity production, based on actual wind profiles for three sites in Nova Scotia, Canada (i.e., Sydney, Caribou Point, and Greenwood). The turbine capacities evaluated are also eligible under the current COMFIT-large scheme in Nova Scotia, including 100 kW, 900 kW and 2.0 MW turbines. A capital budgeting model was developed and then used to evaluate investment decisions on wind power production. Wind duration curves suggest that Caribou Point had the highest average wind speeds but for shorter durations. By comparison, Sydney and Greenwood had lower average wind speeds but with longer durations. Electricity production cost was lowest for the 2.0 MW turbine in Caribou Point ($0.07 per kWh), and highest for the 100 kW turbine located in Greenwood ($0.49 per kWh). The most financially viable wind power project was the 2.0 MW turbine assumed to operate at 80 m hub height in Caribou Point, with NPV=$251,586, and BCR=1.51. Wind power production for the remaining two sites was generally not financially feasible for the turbine capacities considered. The impact of promoting local economic development from wind power projects was higher in a scenario under which wind turbines were clustered at a single site with the highest wind resources than generating a similar level of electricity by distributing the wind turbines across multiple locations.     

Realistic generation cost of solar photovoltaic electricity

Solar photovoltaic (SPV) power plants have long working life with zero fuel cost and negligible maintenance cost but requires huge initial investment. The generation cost of the solar electricity is mainly the cost of financing the initial investment. Therefore, the generation cost of solar electricity in different years depends on the method of returning the loan. Currently levelized cost based on equated payment loan is being used. The static levelized generation cost of solar electricity is compared with the current value of variable generation cost of grid electricity. This improper cost comparison is inhibiting the growth of SPV electricity by creating wrong perception that solar electricity is very expensive. In this paper a new method of loan repayment has been developed resulting in generation cost of SPV electricity that increases with time like that of grid electricity. A generalized capital recovery factor has been developed for graduated payment loan in which capital and interest payment in each installment are calculated by treating each loan installment as an independent loan for the relevant years. Generalized results have been calculated which can be used to determine the cost of SPV electricity for a given system at different places. Results show that for SPV system with specific initial investment of 5.00 $/kWh/year, loan period of 30 years and loan interest rate of 4% the levelized generation cost of SPV electricity with equated payment loan turns out to be 28.92 ¢/kWh, while the corresponding generation cost with graduated payment loan with escalation in annual installment of 8% varies from 9.51 ¢/kWh in base year to 88.63 ¢/kWh in 30th year. So, in this case, the realistic current generation cost of SPV electricity is 9.51 ¢/kWh and not 28.92 ¢/kWh. Further, with graduated payment loan, extension in loan period results in sharp decline in cost of SPV electricity in base year. Hence, a policy change is required regarding the loan repayment method. It is proposed that to arrive at realistic cost of SPV electricity long-term graduated payment loans may be given for installing SPV power plants such that the escalation in annual loan installments be equal to the estimated inflation in the price of grid electricity with loan period close to working life of SPV system.     

Assessment of Korean customers’ willingness to pay with RPS

To increase the use of renewable energy, the Korean government will introduce the Renewable Portfolio Standard (RPS) in 2012. The RPS places responsibility for extra renewable energy costs on the consumers and allows price competition among different renewable sources. Accordingly, this study analyzes through the contingent valuation (CV) the willingness of Korean households to pay more for electricity generated by wind, photovoltaic (PV), and hydropower. Our empirical results show that, although the willingness to pay (or WTP) was highest for wind power and lowest for hydropower, the differences in WTP among the renewable sources were statistically insignificant. This suggests that Korean consumers prefer a renewable portfolio that minimizes power supply costs.The average WTP for all three energy types was KRW 1562.7 (USD 1.350) per month per household, which was approximately 3.7% of the average monthly electricity bill in 2010. This amount represents only 58.2% of what the Korean government allocated in its budget to the new and renewable energy dissemination program in 2010. Thus, our results imply that the promotion of the new and renewable energy dissemination program may be difficult only with the WTP for electricity generated from renewable sources. Specifically, the mean WTP will not support the set-aside dissemination capacity for PV after 2014.