This report outlines a comprehensive approach to overhauling corporate renewable Power Purchase Agreements (PPAs) in South Korea. By adopting methods that align with international standards and practices, this report explores how businesses will be encouraged to use more renewable electricity. These proposed measures aim to facilitate more active and beneficial corporate renewable electricity procurement through regulatory adjustments, market restructuring, and supportive policies.
South Korea's PPA System KOREAN
Size: 32.82 MB
Date added: 02/10/24
This report specifically addresses the details of Korea’s current renewable energy PPA system, and various issues that hinder the widespread adoption of corporate renewable energy uptake are analysed. Many countries around the world are proactively using PPAs, allowing businesses to bypass the conventional power markets and directly purchase electricity from energy producers.
Korea’s PPA scheme faces unique challenges primarily stemming from regulatory, financial, and market structure issues. This report focuses on three key obstacles: high ancillary costs, overlapping network usage fees, and opaque pricing policies. These barriers intertwine and collectively create a complex and unattractive environment for businesses interested in adopting renewables.
In addition, the report details the structure of the domestic electricity market as a significant hindrance to the adoption of PPAs, where market flexibility and innovation are limited by the monopolistic presence of the Korea Electric Power Corporation (KEPCO). In light of this, the report suggests market reform, in line with successful foreign case studies.
Finally, the report analyses the effects of policy incentives that can support the use of renewables, by looking at countries with dynamic PPA markets that provide tax benefits, subsidies, and price guarantees to incentivise the private sector participation.
More on
EnergyOur latest stories
23 September
Cambodia, Ethiopia, Ghana, Tanzania, and Uganda join global push for blended cement, bringing government coalition to 12 nations
22 September
Catalonia joins methane coalition to target waste and farming pollution
21 September
Climate Group CEO Helen Clarkson named in The Independent Climate 100 List 2026
18 September
Renewable supply shortfalls threaten companies’ 100% clean energy goals
27 August
Four new states join methane coalition as pilot grants worth US $100k target waste and farming emissions
19 August