According to Yonhap News,
The city of Busan announced on Mar. 6 that the Korea Energy Agency’s proposal to further advance small-scale grid-connected energy distribution system as part of national energy development plans 2020 was finally approved.
The city government formed a consortium with SP&G and Korea Power Exchange (KPX) to push on the project, estimated to cost KRW 2.7 billion in total.
The roadmap for the plan is to identify whether locally produced renewable energy sources, particularly generated from a small scale virtual power plant, distributed by local individuals, are marketable through a series of business feasibility research work conducted by KPX. Reviewing the study results, KPX confirms the availability of generation sources.
Energy sources as pricing determinants under the current market practice of “System Marginal Price (SMP)” are nuclear energy, coal energy, LNG and heavy oil.
But renewable energy sources such as solar power are yet to be part of the system as price cap is imposed on the energy price of base load generating units like coal or atomic energy.
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Source: Yonhap News (Mar. 6 , 2020)