Starting this year, companies in Korea will be able to procure renewable energy. The use of renewable energy is recognized as a result of reducing greenhouse gases.
The Ministry of Trade, Industry and Energy announced on the 5th that it will introduce the’Korean-style RE100 (K-RE100) system’, which allows electricity consumers to selectively purchase and use renewable energy from this year.
RE100 is a global campaign to procure 100% of the electricity used by companies with electricity generated through renewable energy such as wind and solar energy by 2050. Currently, more than 280 global companies, including Google and Apple, are participating, and these companies are also demanding the use of renewable energy from their partners.
However, it was difficult to participate in the campaign because there was no means of purchasing renewable energy in Korea. Six SK Group companies were approved to join the campaign for the first time in Korea, but implemented them at overseas sites.
The Korean RE100, implemented this time, has been modified to suit the domestic situation.
Global RE100 recommended participation for companies with annual electricity usage of 100 GWh (gigawatt hours) or more, but the domestic system allows both industrial and general electricity consumers to participate through registration by the Korea Energy Agency, regardless of electricity usage.
Renewable energy can be procured through ▲ green premium system ▲ third party PPA (power purchase contract) ▲ purchase of renewable energy supply certificate (REC) ▲ self-generation.
KEPCO through bidding for the green premium system[015760]It is a way to buy renewable energy by adding a premium to it.
The third party PPA refers to the signing of a power transaction contract between a renewable energy generator and a company through KEPCO. As direct electricity transactions between power generation companies and companies are not currently possible, the Enforcement Decree of the Electricity Business Act was amended to require intermediary with KEPCO. The amendment passed the state council on that day.
Until now, only power generation companies who had to implement the Renewable Energy Supply Mandatory (RPS) system could buy RECs, but now companies can also purchase RECs to be recognized for use of renewable energy.
The Korea Energy Agency is building a dedicated REC trading platform for RE100 implementation, and is planning to conduct a pilot project in the first quarter of this year.
The Corporation plans to issue a’renewable energy use confirmation’ after confirming the use of renewable energy submitted by companies. This confirmation can be used to implement the global RE100.
The government has decided to recognize that if companies use renewable energy, they will reduce greenhouse gas emissions. To this end, the Ministry of Environment is revising the relevant guidelines for specific energy sources, reduction measures and methods.
In addition, if at least 20% of renewable energy is used, labeling will be given.
An official from the Ministry of Industry said, “As companies’ ESG (environmental, social responsibility, governance) management is expanding, it is likely that more and more companies are willing to participate in the Korean RE100. You can use it, so you can enjoy marketing effects.”
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