Reassessing the Commercial Viability of Virtual Power Plants in South Korea Using 2024 Electricity Market Data: Policy-Lever Effects for Regulatory Innovation

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This research aims to reassess the economic viability of virtual power plants (VPPs) using 2024 electricity market data, focusing on the impact of regulatory innovations.
Analyzed 10-year period with a discount rate of 8%
Applied 2024 market values: System Marginal Price (SMP) of 128.33 KRW/kWh, Renewable Energy Certificate (REC) at 72,000 KRW/REC
Calculated NPV and IRR across three scenarios: 1MW, 5MW, and 10MW
1MW scenario resulted in NPV of -550 million KRW and IRR of -1.8%, indicating non-viability.
5MW scenario showed NPV of +377 million KRW and IRR of 18.5%, confirming robust economic viability.
10MW scenario achieved NPV of +144 million KRW and IRR of 10.8%, with economic viability focused on SMP and REC.

Evaluates economic viability of virtual power plants in South Korea, suggesting innovative regulatory policies.

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Daesil Choi (2026) studied this question.

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