| Title |
Economic Value Analysis of Renewable Energy Curtailment: Focusing on Case Studies of Solar Power Generator Curtailment in Jeju Island |
| Authors |
임세헌(Se-Heon Lim) ; 송경민(Kyung-Min Song) ; 류형우(Hyoung-Woo Ryu) ; 김대욱(Dae-Wook Kim) ; 윤성국(Sung-Guk Yoon) |
| DOI |
https://doi.org/10.5370/KIEE.2026.75.7.1472 |
| Keywords |
Renewable Energy Curtailment; Energy Storage System; System Marginal Price |
| Abstract |
This study quantitatively evaluates the economic trade-off between accepting solar power curtailment and deploying an Energy Storage System (ESS) for mitigation, using actual grid data from Jeju Island. Analysis of 2022? 2023 curtailment events shows that accepting curtailment is currently 31.03 million KRW per day more cost-effective than ESS deployment. Economic viability is primarily determined by the volume of curtailed energy and the volatility of the System Marginal Price (SMP): high SMP volatility supports ESS profitability via arbitrage, while low volatility favors accepting curtailment. The key tipping point for ESS economic advantage is a unit investment cost of 290 million KRW/MWh, projected for the late 2030s. Although ESS is critical for the long-term NDC target, these findings suggest accepting curtailment is currently economically justified and should be strategically used alongside future ESS expansion. |