Optimal Planning of a Regional Power-to-X-Based Sector Coupling Framework for Distributed Energy Special Zones

This paper proposes a regional distributed energy operation framework that integrates Power-to-X (P2X)-based sector coupling with Distributionally Robust Optimization (DRO) for distribution network operation environments in special zones established under South Korea’s Special Act on the Promotion of Distributed Energy. The conventional South Korean electricity market has primarily operated under a centralized Cost-Based Pool (CBP) structure, where the participation of small-scale renewable energy providers has been limited due to requirements for centralized dispatch generators. To address these structural limitations, the South Korean government introduced the distributed energy special zone policy and has promoted a Peer-to-Peer (P2P)-based electricity trading mechanism that enables direct electricity transactions between renewable energy providers and consumers within regional distribution networks. As a result of these policy initiatives, investment in small-scale renewable energy projects within designated special zones is expected to increase significantly; however, the limited local demand capacity of regional distribution networks simultaneously imposes clear constraints on the accommodation of renewable energy. Therefore, this study applies P2X-based sector coupling technologies to improve the capability to accommodate renewable energy within special zones while simultaneously establishing new energy business models. In addition, DRO is incorporated into the proposed framework to demonstrate the system’s economic feasibility and operational robustness under high uncertainty in electricity prices.