Summary
This study quantitatively evaluates the net socio-economic benefits generated when renewable energy is supplied through an Ultra-High Voltage Direct Current (UHVDC)-based cross-border transmission network (UHVDC-CBT). Net benefits are defined as the difference between total benefits and total costs over the entire life cycle and serve as a key indicator for assessing the profitability of interconnection systems. Benefit components include transmission revenue, greenhouse gas reductions resulting from securing offshore renewable resources, and improvements in system reliability, while cost components consist of capital expenditure
Read more Read less(CAPEX) and operating expenditure (OPEX).
Based on these elements, major economic indicators, such as Net Present Value (NPV), Benefitto-Cost Ratio (B/C), Internal Rate of Return (IRR), and Payback Period (PBP), are applied to evaluate investment feasibility, complemented by sensitivity analyses with respect to transmission capacity, tariff levels, and discount rates. Notably, this study (i) proposes a structured life-cycle-based integrated assessment framework, and (ii) enhances practical relevance by employing the Weighted Average Cost of Capital (WACC) rather than the conventional overnight cost assumption. The proposed methodology offers a systematic means to evaluate the economic viability of UHVDC-CBT interconnections and can provide substantive evidence to support future policy and investment decision-making.
Additional informations
| Publication type | Session Materials |
|---|---|
| Reference | C1_11783_2026 |
| Publication year | |
| Publisher | CIGRE |
| Country | Korea, Republic of (South Korea) |
| Study committees | |
| File size | 794 KB |
| Price for non member | 30 € |
| Price for member | 30 € |
Authors
SONG Sunghwan - Korea Electrotechnology Research Institute; SHIN Wooyoung - Korea Electrotechnology Research Institute; LEE Seungryul - Korea Electrotechnology Research Institute; YOON Jae Young - Korea Electrotechnology Research Institute
Keywords
Cross-Border Trading, Economic Feasibility, Investment Sensitivity Analysis, Renewable Energy Integration, UHVDC Transmission
