Expectations in the green premium market’taken the first step’↓… “Need a plan for successful operation”

[이데일리 문승관 기자] Although the government introduced a’green premium’ system that purchases electricity made from renewable energy such as solar and wind power at a higher price, it was found that the successful bid rate remained at 7%, falling short of market expectations. Unlike the market reaction, the government evaluated that it was good when considering the period until the achievement of ‘2050 carbon neutrality’. It is predicted that if’K-RE100′ is implemented during the first half of this year, a number of companies and group companies will take part in the K-RE100 one after another. However, it is pointed out that in order to successfully operate the RE100 system when taking the first step, a long-term plan should be established in consideration of national benefits, equity among customers, and efficiency of the national energy system.

[이데일리 문승용 기자]

According to the power generation industry on the 23rd, as a result of the ‘1st Green Premium Bidding in 2021’ conducted by KEPCO last month, 1252 GWh, which is about 7% of the total of 11,7827 GWh (gigawatt hours), was a successful bid.

KEPCO plans to bid additionally in June for the surrendered quantity. However, in the market, it is predicted that it will be difficult to digest all the remaining products amounting to 1,6575 GWh. An official from a private power generation company said, “The green premium is highly accessible to customers among the means of implementing RE100 because companies do not have a burden on power generation facilities, power supply risks, and technical problems. Because FIT) is charged a premium, the price is higher than that of general electricity bills, which is acting as an obstacle to companies in choosing a green premium.”

Regarding this, the Ministry of Industry said that considering that there are means of implementing RE100 in addition to the green premium, the winning bids are not bad. As a company participating in K-RE100 in the future, Green Premium is expected to spread rapidly as it is an easy implementation plan.

An official from the Ministry of Industry explained, “We cannot distribute the first drink, but rather, the results of this green premium bid show unexpected results in the presence of several other RE100 implementation means.”

(Source = KEPCO)

Although the green premium is the easiest way to procure renewable energy, the reason why it does not attract companies’ attention right now is that it has not been recognized for reducing greenhouse gas emissions through’green premium’. This is because of the’double counting (duplicate counting)’ proposed by the Ministry of Environment.

The Ministry of Environment reflects the amount of power produced by the mandatory system (RPS·renewable energy supply mandatory) and budgetary business (FIT·generation difference support system) as a means of reduction in the national GHG reduction roadmap. They are enjoying the benefits. Therefore, the Ministry of Environment explained that even if a company purchases a green premium, it cannot be recognized as an additional reduction.

The’K-RE100′ system, which is expected to be implemented in the first half, is still in its infancy. ‘K-RE100′ is a platform introduced by the Ministry of Industry according to the domestic situation,’RE100′, a global campaign that procures 100% of the power used by companies with renewable energy. It is evaluated that the threshold was lowered because there is no standard of electricity usage and there is no need for a burdensome’renewable energy 100% declaration’.

The Ministry of Industry said, “A large number of large companies participated in this green premium bid, and in June, when bidding for the remaining amount, it is expected that more domestic companies will participate in the bidding along with the full-scale RE100 implementation.”

Although they showed their willingness to participate in large corporations, they point out that it is necessary to prepare an institutional mechanism for spreading them to various industrial sectors ranging from manufacturing and service industries.

KEPCO Management Research Institute said, “The operation of the RE100 system requires thorough preparation and social discussions in terms of public benefits, equity among customers, and efficiency of the national energy system, based on cases of leading overseas countries.” We must also be foolish to prepare an operating system,” he stressed.

▶What is RE100

RE100 is a global campaign that replaces the electricity required for business activities with 100% eco-friendly renewable energy. It was launched in 2014 by The Climate Group, a multinational non-profit organization in London, UK.