자원·환경경제연구 ISSN:1229-9146(Print) Environmental and Resource Economics Review

This study aims to quantitatively analyze the price signals provided to renewable energy generators under various design schemes of Feed-in Premium (FiP) and Contracts for Difference (CfD) within a Locational Marginal Pricing (LMP) framework. FiP and CfD mechanisms have been widely adopted to enhance market efficiency and ensure fair compensation for renewable energy producers. However, traditional designs often fail to deliver adequate price signals, leading to the proposal of alternative approaches—namely, Smarter, Yardstick, and Financial methods. Among these, the design of the reference price plays a crucial role, especially in countries currently adopting or piloting such methods. This paper reviews key reference price design approaches and empirically evaluates how they affect price signals under LMP-based FiP and CfD structures. The results demonstrate that the design of the reference price can lead to substantial variations in the price signals received by renewable energy generators. These findings have significant implications for the future development of LMP-based market mechanisms and the effective implementation of FiP and CfD schemes.