SMP·REC crash, solar power operator’sounds’… “Give me a measure”

Solar power generators are holding a rally in front of the government's Sejong building, claiming the protection of the solar power business. (Photo = Korea Solar Power Industry Association)
Solar power generators are holding a rally in front of the government’s Sejong building, claiming the protection of the solar power business. (Photo = Korea Solar Power Industry Association)

[한스경제=양세훈 기자] Solar power generation companies are threatened with their right to live due to the plunge in the power wholesale price (SMP) and renewable energy supply certificate (REC) prices. With the addition of the carbon certification system, it is losing its place, and the government needs to prepare measures as soon as possible.

According to the Power Exchange Information Statistics System (EPSIS) on the 14th, the average SMP in December of last year was 66.88 won. This is the lowest level in 16 years since the winter of 2004, and it is the first time since December 2004 (63.60 won) that the SMP reached 60 won in the winter season, the highest season in the year due to an increase in power demand.

Compared to the previous year’s December, which recorded 83.72 won, it has fallen by about 20%, and it is less than half compared to 167.37 won in 2008, the highest level based on SMP in December. The combined power price of the REC price ranged from 2.4 million won in 2017 at 100kW to 900,000 won in December.

SMP prices are expected to rise for the time being. This is because a total of 5.8GW nuclear power and coal facilities such as Shinhanul 1 and 2 (2.8GW), Shinseocheon Coal Power (1GW), and Goseong High Coal Power 1 and 2 (2GW) will enter this year alone.

In particular, the sudden introduction of the carbon certification system in the RPS fixed price competitive bidding in December last year hurts the solar power companies.

The carbon certification system began with the name of securing competitiveness in the domestic wafer industry. Grades 1 to 3 are given according to the carbon emission from the product production process, and the smaller the carbon emission, the more favorable evaluation is obtained in the competitive bidding of the New Renewable Energy Compulsory Quota (RPS). In the end, power generation companies before the enforcement of the carbon certification system are bound to be in a disadvantageous position in competitive bidding. Controversy over effectiveness and controversy over preferential treatment of specific companies continue.

In response to this situation, the Korea Solar Power Generation Business Association (Daetaehyeop) urged the government to prepare measures for photovoltaic power generation businesses.

Daetaehyup, who held a second rally in front of the government’s Sejong Government Complex on the 14th, said, “Difference points are given to 10, 4, and 1 point, respectively, depending on the amount of carbon emissions, The summation and application of these are to fuel the bankruptcy of the standard power plant,” he said. “The carbon certification system applied to the existing power plant should be immediately withdrawn and practical remedies should be immediately implemented.”

Daetaehyeop actually △released RPS fixed price competitive bidding evaluation details in the second half of 2020 and improved the competitive bidding system △announced competitive bidding volumes for at least 5 years and allocated at least 6GW in 2021 △Allocated at least 3GW capacity to power plants completed before the introduction of the carbon certification system △ Adjustment of Jeju power generation sales price (SMP+REC) to the same level as onshore △ Guarantee of minimum profit for ESS installers is required.

Daetaehyup Promotion Committee Chairman Jeong Jin-gyu said, “All solar power companies believe in the government’s new and renewable energy policy as a strict rule, and have started their business with great debts. He said, “We need to protect over 10,000 solar power generation businesses nationwide who believe in government policies and invest in goodwill,” he said.

.Source