Policy Council, deliberation and confirmation of the ‘5th Basic Plan for New and Renewable Energy’
Significantly strengthening system, demand, and hydrogen… Presenting a carbon-neutral challenge system
[에너지신문] In 2034, the share of new and renewable energy is expected to exceed 25%, making it a major energy source.
On the 29th, the government held a new and renewable energy policy council (chair: the head of the Ministry of Industry’s Energy Resources Office) and deliberated and confirmed the ‘5th basic plan for the development, use and distribution of new and renewable energy technologies’.
The basic plan for new and renewable energy is established every 5 years for a period of 10 years or more in accordance with Article 5 of the’New Energy and Renewable Energy Development, Use, and Distribution Promotion Act’. Includes opinion gathering.
It is meaningful to present mid- to long-term goals and implementation plans in the field of new and renewable energy by linking with the energy master plan, which is the highest plan in the energy sector.
● Key Features of the 5th New and Renewable Energy Basic Plan
The 5th basic plan for new and renewable energy secured consistency between the long-term plans in the energy sector in line with the 9th basic plan for power supply and demand and the period and goal. The plan period is 2020-2034, which is the same as the 9th Basic Electric Power Supply and Demand Plan, but the target for the proportion of new and renewable energy generation in 2034 was also set at 25.8% (renewable energy 22.2%, new energy 3.6%) in accordance with the 9th supply and demand plan. .
In addition, the contents of the power system, renewable energy demand, and new energy (hydrogen), which were not considered in the existing basic plan for new and renewable energy, have been significantly supplemented. As renewable energy is expected to emerge as the main energy source during the 5th planning period, the goal is to systematically prepare system contributions and market systems at the level of traditional power sources beyond the supply-oriented new and renewable energy policies.
According to the Ministry of Industry, it preemptively suggested the challenges and countermeasures in the new and renewable energy field to move toward carbon neutrality in 2050 beyond the planned period (2020-2034). The countermeasures presented this time will be used in the process of establishing an’energy carbon neutral strategy’ next year.
● What are the key contents of the 5th New and Renewable Energy Basic Plan?
The 5th New and Renewable Energy Basic Plan aims to accelerate the transition to a low-carbon society and economy based on the five innovations in the supply of new and renewable energy, market, demand, industry, and infrastructure.
First, the purpose of dissemination innovation is’ordered and sustainable diffusion’. Its main focus is the introduction of a wind power license integration organization (One-Stop Shop), expansion of the site rental period due to an increase in the life of the facility, and improvement of licensing and regulations such as rationalization of separation distance regulations.
This year, we are promoting the enactment of the’Special Act for Promotion of Wind Power Supply (tentative name)’ for the installation of a one-stop shop for wind power, and reviewing the establishment of special rules for separation distances or enactment of standard ordinances in the New Renewable Energy Act. In addition, regional energy centers will be established, regional energy plans centered on new and renewable energy will be established and implemented, and excellent local government incentives will be strengthened, and planned locations will be introduced (mid- to long-term).
The company plans to expand the distribution of location-customized (buildings, industrial complexes, and idle state-owned lands) by establishing a platform for providing information on idle state-owned lands suitable for new and renewable energy, while inducing investment revitalization through various financial supports such as customized loans, green guarantees, and renewable ecosystem funds.
A facility integrated safety management system will also be established in connection with the renewable energy licensing integrated system. Its main content is to use the integrated licensing system (finding local government licensing status, etc.), which will be expanded nationwide this year, and strengthen safety management.
Market innovation is aimed at enhancing the efficiency of the RPS market and expanding new and renewable energy in the non-electricity field (heat and transport).
The RPS market will be reorganized, focusing on long-term competitive bidding contracts, to enhance the profitability of business operators, such as expanding other energy sources such as wind power and dividing the market by energy source in the solar power priority policy. Based on the introduction of the carbon certification system, the current bidding system will be reformed, such as separate bidding for existing and new business operators, and the establishment of a large-scale new market of 20MW or more.
In addition, when the RPS mandatory ratio is raised to the level necessary to achieve the distribution target (40% in 2034) and the power generation facility standard is lowered (500MW → 300MW), the expansion of the supply obligations (23 companies → 30 companies) is reviewed. It plans to prepare a plan to introduce a new and renewable heat supply system (RHI or RHO), and to review and promote a plan to diversify the target of the mandatory renewable fuel mixing (RFS) into renewable energy and hydrogen.
In addition, the biodiesel blending ratio, which is currently 3%, will be gradually increased to around 5% in 2030, and the system will be improved to give flexibility in fulfillment of obligations such as deposit and deferral.
Demand innovation focused on the realization of RE100 and the spread of private vehicles. Operate various means of implementation to enable companies and public institutions to implement RE100, and induce leading participation of public institutions. In addition to the recognition of GHG reduction, the company plans to strengthen incentives to participate in RE100, such as supporting green guarantees and granting RE100 labeling, and expanding the participants of RE100 to industrial complexes, regions, and citizens in the future.
In order to activate renewable energy for private use, incentives such as self-consumption type RECs will be reviewed and promoted. The share of private solar power facilities in Korea is 9% as of 2019, which is very low compared to 74% in Germany and 40% in the United States. Therefore, the Ministry of Industry explained that it is essential to expand private vehicles for sustainable supply and alleviation of system burden. This will be implemented for industrial complexes first, and then the rate of spread is evaluated and further expansion is reviewed.
Renewable energy that exceeds demand by time is expected to create demand through demand transfer and supply transfer. A storage mix plan for Jeju, where output control is increasing, will be established this year, and the development and demonstration of technologies for conversion (sector coupling) to other fields such as heat and gas of renewable energy power will also be promoted.
Industrial innovation can be summarized as strengthening innovation capabilities such as fostering hydrogen specialized companies and energy innovative companies. It plans to foster 1,000 hydrogen-specialized companies through R&D, innovation procurement and investment expansion, and up to 100 energy innovation companies with sales of 100 billion won or more.
Localization of core hydrothermal technologies such as 35% high-efficiency solar cells, 12MW or more super-large wind turbines, 100MW green hydrogen mass production, and large-capacity heat pumps will be promoted, and the results of R&D will be used to support the securing of track records, such as linking to public enterprises’ pilot projects.
At the same time, it will expand the market for high-efficiency and eco-friendly products by upgrading the lowest efficiency system and carbon certification system. It is reviewing the step-by-step upgrade of the minimum efficiency standard, the introduction of top runners, and the expansion of the carbon certification system from solar modules to wind power and fuel cells.
Finally, infrastructure innovation aims to build a system to increase system acceptance. In order to alleviate system congestion, it plans to introduce a non-Firm connection method such as a difference in connection capacity for each line, maximum output limit, and line connection/post control from the existing fixed connection method.
In order to cope with the volatility of renewable energy, the facility plans to enhance its own forecasting and control capabilities, secure flexible and inertial resources, and reinforce the response infrastructure such as integration of the renewable e-control infrastructure.
● New and renewable policy tasks in the era of carbon neutrality
The government believes that in order to achieve carbon neutrality in 2050, new and renewable energies must overcome the current limitations in various fields such as potential, technology, and systems.
Therefore, it plans to expand its potential and innovate the distribution and development method. The plan is to expand the potential by improving facility efficiency, utilizing sites that do not include potential amounts such as exterior walls of buildings and farmland, and discovering promising renewable energy sources such as cooling and heating at sea and temperature differences.
According to the Korea Institute of Energy Research, if the solar module efficiency is increased to 40% and the wind turbine capacity is increased to 20MW, the potential for preferential supply of solar and wind power will increase by 2.3 times. In addition, when the building’s south-facing wall is used, the building’s solar power potential is estimated to increase by 30%.
In addition, large-scale public-led development and community projects, such as granting the obligation to install renewable energy by local governments (local RPS), and open-type development of public properties, will promote large-scale development. The plan is to classify public property and idle sites in public institutions according to potential amount and land price, and use them for renewable energy installation.
It has also made plans to break through technological limits by enhancing new and renewable supply-delivery-transaction technologies and strengthening new energy security. It plans to innovate supply technology through ultra-high efficiency solar cells, ultra-large wind turbines, and high-efficiency liquefied hydrogen, and accelerate the development of next-generation power system technologies such as AC/DC hybrid transmission and distribution system technology.
At the same time, we will reinforce energy security in the carbon-neutral era by recycling core new and renewable materials such as solar and fuel cells, securing remanufacturing technology, and stabilizing the supply of materials and parts. The production of recycled photovoltaic silicon materials is currently 1,800 tons/year to 50,000 tons/year in 2050, and the recovery rate of raw materials for fuel cell catalyst materials is aimed to increase from 70% to more than 95% by 2050.
With the establishment of a renewable energy-centered power system, it starts the’power system major conversion’. Provides inertia and frequency control so that the renewable energy facility, which is the main power source, fulfills the role of securing system stability and flexibility under the judgment that the role of various resources such as supplier resources, customers, and storage resources is necessary for system stabilization in the process of main power supply of renewable energy. Promote mandatory.
In addition, automatic DR using large-scale consumer resources such as self-contained solar power, smart home appliances, and electric vehicles, and securing long-term storage means such as hydrogen gas and liquid fuel storage to respond to seasonal demand, and mandatory supply-demand balance functions are promoted. The main point is to utilize renewable energy that exceeds the demand in spring and autumn for cooling and heating in summer and winter.
In particular, the opinion of the Ministry of Industry is that a distribution system operator (DSO) is needed separately from the existing system operator. It is a position that it is necessary to promote the Northeast Asian super grid in terms of reinforcing the transmission network by converting to a hybrid power grid that combines the AC (alternating current) transmission network and the DC (direct current) distribution network.
In order to expand green hydrogen and integrate the energy market, it is also seeking ways to turn green hydrogen into a core resource for sector coupling.
It is a strategy to accelerate the implementation of the green hydrogen economy by gradually expanding the mandate of green hydrogen over power generation (HPS), transportation (fuel mixing), and industrial processes. It is about activating sector coupling (P2X) between energy sources, focusing on green hydrogen, and integrating a separate supply obligation system for each energy type. The mandatory integrated energy supply refers to mutual recognition of the mandatory supply of RPS (electricity), RFS (fuel), and RHO (heat) as tons of electricity conversion.
The Ministry of Industry will ultimately introduce an integrated energy system for demand-supply resources in which demand resources (efficiency improvement, peak reduction, demand transfer, etc.) with abundant carbon reduction potential compete with supplier sources. According to the joint research of IEA and IRENA, the potential amount of carbon reduction by technology in 2050 is △renewable energy (44%) △energy efficiency (32%) △renewable energy electrification (14%) △others (10%).
Young-jun Joo, head of the Energy Resources Office, who presided over the New Renewable Energy Policy Council on this day, said, “With the establishment of the 5th New and Renewable Basic Plan, we carefully support the growth of new and renewable energy as the leading energy source, while renewable energy and green hydrogen “We plan to systematically prepare for carbon neutrality in 2050,” he said.
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