LAUSR

Abstract As variable renewable energy (VRE), such as solar and wind energy, is expanded, there is an emerging need to limit the power generation from VRE for the purpose of ensuring the stability of the power system. This research is particularly interested in the so-called power-to-heat (P2H) system, which converts idle power from VRE into heat and utilizes the heat as hot water or heating instead of limiting the power generation from VRE. The research aims to assess the public value by employing contingent valuation (CV) to elicit people's willingness to pay (WTP) for introducing the P2H system in South Korea. To achieve this aim, in June 2020, a CV survey of 1000 interviewees in South Korea was carried out, posing a closed-ended question. Although 53.9% of interviewees did not place any value on the introduction of P2H, the average WTP was found to be KRW 4348 (USD 3.59) per annum, which holds statistical significance. If this sample value is extended to the population, it would be KRW 88.48 billion (USD 73.12 million) per year. The costs incurred in introducing P2H, such as the cost of developing P2H technology, the cost of heat storage infrastructure, subsidies for local district heating operators, and so on, may be compared with the public value. Various implications derived from the results are also discussed.