Valuing large-scale battery energy storage expansion for renewable energy integration: A contingent valuation study in South Korea

With increasing renewable energy (RE) curtailment in South Korea caused by transmission bottlenecks, this study empirically investigates household preferences and willingness to pay (WTP) for the expansion of battery energy storage systems (BESS) as a grid-integration solution. A nationwide contingent valuation survey of 1000 households was conducted, applying a one-and-one-half-bound spike model to derive accurate WTP estimates for incremental BESS capacity expansion aimed at enhancing grid flexibility and RE utilization. The scenario assumed additional monthly electricity bill payments to finance a 2000 MW increase in BESS capacity over ten years. The mean monthly WTP was estimated at KRW 1916 (USD 1.40), with a high proportion of zero WTP responses reflecting diverse public attitudes toward energy storage costs. Socioeconomic characteristics—including income, region of residence, awareness of RE curtailment, and political orientation—significantly influenced WTP outcomes. By quantifying household-level support for large-scale BESS deployment, this study provides the policy-relevant economic evidence from South Korea to guide tariff reform, subsidy design, and public engagement strategies for effective energy storage integration.