Jae-Hyup Lee, A Study on Performance-Based Regulation in the Power Sector for Energy Transition: The U.S. Case – Focused on Hawaii, Environmental Law and Policy, Vol.32, No.1(2024.2), pp.42-75.
<Abstract>
Decarbonizing the power sector is a key challenge in the era of climate change. However, the expansion of renewable energy, which is considered to be a representative decarbonized and low-carbon energy source, poses major challenges to the existing power system due to its decentralized and intermittent nature. Therefore, the energy transition requires a fundamental reorganization of the domestic power system, especially the power market. This paper examines the unique features of our electricity market and system, and the crises it faces. In particular, as energy supply and demand are closely linked to the dynamics of the global order, energy security has become a key variable in the survival and growth of our national economies. In addition, the goal of carbon neutrality by 2050, which has emerged alongside the human challenge of the climate crisis, not only requires the transformation of our energy system, but also entails a myriad of socioeconomic conflicts in the process of energy transition. Above all, our electricity system is characterized by a centralized, state-led system with extremely low autonomy in design and operation, which makes it difficult to consider innovative alternatives to respond to the above-mentioned crises. Against this backdrop, Performance Based Regulation (PBR), which visualizes and measures the performance of power companies and provides incentives for mass adoption of renewable energy, has significant implications for our power system. This study examines the background, strengths, and limitations of such mechanisms through the case of the U.S. state of Hawaii, which has introduced and operated such mechanisms early, with the main objective of drawing out the implications and future challenges of Hawaii"s PBR and contributing to securing the sustainability of our electricity market and governance.
Jae-Hyup Lee, A Study on Performance-Based Regulation in the Power Sector for Energy Transition: The U.S. Case – Focused on Hawaii, Environmental Law and Policy, Vol.32, No.1(2024.2), pp.42-75.
<Abstract>
Decarbonizing the power sector is a key challenge in the era of climate change. However, the expansion of renewable energy, which is considered to be a representative decarbonized and low-carbon energy source, poses major challenges to the existing power system due to its decentralized and intermittent nature. Therefore, the energy transition requires a fundamental reorganization of the domestic power system, especially the power market. This paper examines the unique features of our electricity market and system, and the crises it faces. In particular, as energy supply and demand are closely linked to the dynamics of the global order, energy security has become a key variable in the survival and growth of our national economies. In addition, the goal of carbon neutrality by 2050, which has emerged alongside the human challenge of the climate crisis, not only requires the transformation of our energy system, but also entails a myriad of socioeconomic conflicts in the process of energy transition. Above all, our electricity system is characterized by a centralized, state-led system with extremely low autonomy in design and operation, which makes it difficult to consider innovative alternatives to respond to the above-mentioned crises. Against this backdrop, Performance Based Regulation (PBR), which visualizes and measures the performance of power companies and provides incentives for mass adoption of renewable energy, has significant implications for our power system. This study examines the background, strengths, and limitations of such mechanisms through the case of the U.S. state of Hawaii, which has introduced and operated such mechanisms early, with the main objective of drawing out the implications and future challenges of Hawaii"s PBR and contributing to securing the sustainability of our electricity market and governance.