Community energy system promotion policy in the Republic of Korea

초록

Community energy systems (CES) provide electricity and heat produced in cogeneration (combined heat and power, CHP) plants to a residential area comprising a number of apartment complexes and commercial buildings. CES promotion policies are based on the assumption of high energy efficiencies. Financial and tax incentives have been allocated to CES operators. In the last two decades, however, there has been a big increase in energy efficiencies of combined-cycle power plants (CCs) including CHPs and condensing boilers. This study tries to verify the validity of the assumption of high energy efficiency of community energy systems. The experience with heat supply systems using natural gas in Korea shows that CES is less energy efficient and more expensive compared to individual gas heating by efficient condensing boilers in combination with CCs. The Korean government should review its CES promotion policy as the energy efficiency of individual gas heating has improved a lot. It should not distort the space heating market. Furthermore, the public should be properly informed on energy efficiency as well as energy and system related costs of various heat supply systems.