Current Photovoltaic Research

Korea Photovoltaic Society (한국태양광발전학회)
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Assessing the Economic and Market Implications of Solar PV Curtailment in Renewable Energy Projects and Power Purchase Agreements

재생에너지(태양광) 출력제어가 발전사업 경제성과 PPA 시장에 미치는 영향 분석

  • Hyun Gyu Lee (Energy Environment Policy and Technology, The Graduate School of Energy and Environment (KU-KIST Green School), Korea University) ;
  • JongRoul Woo (Energy Environment Policy and Technology, The Graduate School of Energy and Environment (KU-KIST Green School), Korea University) ;
  • Sung-Eun Chang (Energy Environment Policy and Technology, The Graduate School of Energy and Environment (KU-KIST Green School), Korea University)
  • 이현규 (에너지환경정책기술학과, 에너지환경대학원(그린스쿨), 고려대학교) ;
  • 우종률 (에너지환경정책기술학과, 에너지환경대학원(그린스쿨), 고려대학교) ;
  • 장성은 (에너지환경정책기술학과, 에너지환경대학원(그린스쿨), 고려대학교)
  • Received : 2025.11.06
  • Accepted : 2025.11.27
  • Published : 2025.12.31
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Abstract

This study quantitatively analyzes the impact of curtailment-a frequent phenomenon due to the expansion of renewable energy (solar PV)-on the profitability of solar power projects and the Power Purchase Agreement (PPA) market. It evaluates how output reduction caused by curtailment affects key financial indicators such as the internal rate of return (IRR) and analyzes the changes in PPA pricing reflected by these losses. Using long-term industrial electricity tariff scenarios, the study assesses the price acceptance level of corporate PPA buyers, explores the structural gap between supply-side prices and demand-side willingness to pay, and examines the potential for market equilibrium. Policy and contractual adjustment mechanisms are evaluated using scenario-based analysis. By integrating curtailment, financial stability, PPA market trends, RE100-driven demand, and institutional compensation tools, this research provides practical insights for the sustainable development and regulatory design of Korea’s renewable energy-based direct power trading market.

Keywords

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