Korea Electricity Security Review A joint report with the Korea Energy Economics Institute

Description

Korea Electricity Security Review Abstract Acknowledgements Table of contents Executive summary Flexibility Operational security Long-term planning Market improvements Cyber and climate resilience Chapter 1 – Electricity security developments in Korea and globally Electricity security in a changing landscape Electricity security: What do we mean? Energy transitions around the world A decarbonised power system will require a much greater contribution from VRE Korea’s electricity objectives Overview of Korea’s electricity sector Current generation mix Current market structure Current policy support for variable renewables History of reliability Institutional framework of Korea’s electricity sector References Chapter 2 – Evolving system flexibility requirements Different phases of VRE integration Korea’s flexibility requirements towards 2030 Existing and potential flexibility resources to facilitate VRE integration System-friendly deployment of VRE Improving flexibility from thermal generation Analysing opportunities for flexible nuclear Role of storage at high shares of VRE Perspective on PSH Perspective on battery storage Long-term flexibility requirements and the role of synthetic fuels The role of demand-side flexibility Benefits of interconnection References Chapter 3 – Maintaining operational security Reflecting VRE in system operation and planning Improving system visibility at high shares of VRE Improving the quality of forecasts Improving generation scheduling and system operation Current practices in balancing and reserve sizing System stability Grid code improvements for a resilient power system Prioritising technical requirements in grid codes References Chapter 4 – Long-term system planning Current practices for long-term planning Future practices for long-term planning Integrated planning and co-ordination need to minimise costs and maximise system resilience Reliability standards should go beyond the average frequency of adequacy shortfalls Detailed probabilistic adequacy assessments become more critical Understanding Korea’s target reliability standard and planning reserve margin in the context of energy transitions VOLL helps to quantitatively assess outage costs to support setting reliability standards References Chapter 5 – Improving market design Current practices for wholesale market operation and reserves Integrating balancing services and the wholesale market Current reform in the market Addressing balancing responsibilities Linking scarcity and price signals across market horizons Current practices in capacity payments Improvements to the capacity payment mechanism Regulation and oversight in the Korean power sector The importance of strong regulators Linking carbon and power markets Brief description of current ETS scheme References Chapter 6 – Climate resilience and cyber security Integrating climate resilience in Korea’s long-term planning for the power sector Assessing climate change risks and impacts Mainstreaming climate adaptation in energy plans Implementing concrete climate resilience measures Support physical hardening Smart solutions to improve climate resilience Recovery planning Support capacity building Strategies and policies for cyber resilience Cybersecurity in the context of critical infrastructure protection Securing the bulk power system Ensuring a coherent cybersecurity strategy across the value chain References Abbreviations and acronyms Units of measure