Energy Efficiency for Supplier and Sustainability for Demand: A Case of Heating Systems in South Korea

Abstract

This paper addresses an analysis of a recent debate in South Korea on energy efficiencies between a combined heat and power system with district heating (CHP-DH) and separate heat and power system (SHP) by applying a scenario analysis technique. In accordance with the Low Carbon Green Growth strategy where the rise of social awareness for energy savings is imminent, various scenarios were considered including CHP-DH (excluding waste heat recovery) versus SHP and CHP-DH (including waste heat recovery) versus SHP. To analyze the satisfaction on energy efficiency of each heating system, nationwide average field data were acquired via a survey with the help of the Korea District Heating Corporation (KDHC), and a comprehensive model for measuring sustainable value related to energy consumption, including economic (ECON), non-economic (NECON), and environmental (ENV) values were presented based on customer satisfaction (SAT). As a result of the structural equation model (SEM) and ordinary least squares (OLS) regression, variations of energy efficiencies of each heat and power delivery system are rather distinctive among different scenarios due to the performance characteristics of each system in the field. The energy savings of CHP-DH systems owned by KDHC, based on nationwide average performance, was found to be higher than the SHP system by 3.25% to 18.1%. While the effect of NECON and ENV on SAT was not significant in SHP, it was significant in CHP-DH. Based on these results, rational decisions can be made to lead the government and energy consumers to maximize energy efficiency, especially in South Korea, where the energy market heavily relies on foreign countries.