Full-scale introduction of the’Korean RE100′ system… Regardless of the amount of electricity used, participation in the Korea Energy Agency
Renewable energy can be procured through green premium system, third party PPA, REC purchase, self-generation
[에너지데일리 변국영 기자] In Korea, electricity consumers can also purchase renewable energy.
The Ministry of Trade, Industry and Energy announced that it will introduce the’Korean RE100 (K-RE100)’ system in earnest starting this year, allowing electricity consumers such as companies to selectively purchase and use renewable energy electricity.
The global RE100 campaign recommends participation for companies with annual electricity usage of 100 GWh or more, but the domestic system allows industrial and general electricity consumers who want to purchase renewable energy in Korea regardless of the level of electricity usage through registration by the Korea Energy Agency. .
The energy sources that can be recognized as renewable energy use are solar, wind, hydro, marine energy, geothermal energy, and bioenergy, which are the same as the global RE100 campaign standards.
Renewable energy can be procured through green premium system, third party PPA, REC (renewable energy supply certificate) purchase, self-generation, and in the case of equity investment directly participating in renewable energy generation business, a separate third party from the power plant PPA signing or REC purchase is required.
In the domestic system, participation is possible without a declaration of 100% use of renewable energy, but the Ministry of Industry recommends that participants use 100% renewable energy in 2050, which is the same as the global RE100 campaign standard. However, by 2050, the interim goal will be left to the participants’ autonomy.
The Korea Energy Agency verifies the use of renewable energy submitted by companies and issues a’renewable energy use confirmation’. Participants who receive the confirmation can use the confirmation to implement the global RE100.
When using renewable energy, it can be recognized as a result of GHG reduction, and the Ministry of Environment is currently revising the relevant guidelines on specific energy sources, reduction means and methods. In addition, the minimum standard for renewable energy use to support incentives such as labeling is set at 20%, and various support measures are planned to promote continuous use of renewable energy.
The Ministry of Industry and Industry announced last year’s’Korea RE100 implementation support plan’ at the’Green New Deal Policy Meeting’, and since then, it has laid the foundation for the implementation of the system, such as revision of laws and system establishment. At the same time, as a result of conducting PR activities and briefing sessions for participation in RE100 for domestic companies and public institutions, the first Korean company to officially subscribe to the global RE100 campaign, and interest in the use of renewable energy is spreading. Currently, more than 280 global companies have participated in the global RE100 campaign, of which 6 are domestic.
▲ Third party PPA
An amendment to the Electricity Business Act Enforcement Decree was passed at the Cabinet Meeting on the 5th to introduce a third-party PPA that allows a power purchase contract (PPA) between renewable energy generators, KEPCO, and electricity consumers.
The current Electricity Business Act is based on electricity market transactions, but exceptional non-market transactions are entrusted to the enforcement decree, and thus, for the introduction of a third-party PPA, the Enforcement Decree of the Electricity Business Act must be amended. To this end, a new provision is made in the amendment to the enforcement decree that it is possible to sign a supply contract with KEPCO and electricity consumers for electricity produced by renewable energy generators (more than 1MW).
When a third-party PPA is introduced, it is expected to contribute to △preparing the basis for RE100 implementation by domestic companies, △proliferation of renewable energy through expansion of renewable energy trading plans, △expansion of options for electricity consumers.
The passage of the amendment to the enforcement decree laid the foundation for the introduction of the system, and the Ministry of Industry and KEPCO are planning to introduce a third-party PPA from the first half through follow-up procedures such as enacting a notice and revising KEPCO’s terms and conditions.
▲Green premium
Green premium is a system in which electricity consumers pay a green premium from KEPCO and purchase renewable energy. From the 5th, a bid announcement for 2021 will be implemented through the KEPCO and the Korea Energy Agency’s New Renewable Energy Center.
Green premium sales volume is set by yearly renewable energy generation volume of RPS (renewable energy supply obligation) and FIT (generation difference support system). Just do it. The amount of power generated by the successful bid is distributed monthly to each participant and purchased at the successful bid price. Detailed information, such as specific participation procedures and methods, can be confirmed through the bidding announcements of KEPCO and the Korea Energy Agency.
The green premium is evaluated as the easiest way for electricity consumers to procure renewable energy, and the green premium paid by electricity consumers will contribute to expanding the supply of renewable energy by contributing to the Korea Energy Agency and utilizing it for renewable energy investment projects. It is expected.
▲ REC purchase
REC (Renewable Energy Supply Certificate), which was only available to those who are obligated to supply RPS, can also be purchased by electricity consumers such as companies from this year, and the use of renewable energy can be recognized through the purchased REC.
Currently, the Korea Energy Agency is building a dedicated REC trading platform for RE100 implementation, separate from the RPS market, and will be implemented in earnest after the first quarter pilot project. The announcement of the pilot project will be posted on the website of the Korea Energy Agency’s New and Renewable Energy Center from January 11th, and details can be found through the announcement.
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