SOUTH KOREA Law and Practice Contributed by: Michael Chang, Sang-Hyun Lee, Su-Yong Jung and Jae-Wook Ryu, Shin & Kim
use of farmland for other purposes’ under the Farm- land Act is deemed to have been granted for farmland outside agricultural promotion zones or designated as renewable energy zones. Participation is highly restricted, limiting operators primarily to actual farm- ers or qualified persons to prevent cultivated farmland from being indiscriminately used. 1.7 Announcements Regarding New Policies MCEE 2026 Plan On 1 February 2026, MCEE announced its 2026 plan, identifying four major initiatives: • accelerating renewable energy development and reducing costs; • innovating and expanding the power grid; • building a power system that supports a just and inclusive energy transition; and • enhancing acceptance and sustainability of nuclear power policy. The 2026 plan targets the deployment of 100 GW of renewable energy by 2030 and the expansion of the On 19 May 2026, MCEE announced the First Renew- able Energy Basic Plan. The plan targets 100 GW of renewable energy capacity by 2030 and at least 30% renewable energy in the power generation mix by 2035. It also signals the abolition of the existing RPS system and a transition to a fixed-price contract system through competitive bidding in the capacity contract market for each power source, with grandfa- thering provisions for existing RPS projects. Renewable Energy Deployment, Siting and Revenue Model Reform On 19 May 2026, MCEE announced the First Renew- able Energy Basic Plan, the first plan of its kind under the Renewable Energy Act. The plan aims to rapidly expand renewable energy deployment, reduce the cost of renewable energy, strengthen the competitive- ness of the renewable energy sector, share income generated from renewable energy, increase public awareness and enhance the role of local governments. power grid needed to accommodate it. First Renewable Energy Basic Plan
• For offshore wind, the government is introducing planned development zones under the Special Offshore Wind Power Act, preparing a long-term bidding execution plan to 2035, expanding the offshore wind supply chain, constructing support ports, securing wind turbine installation vessel capacity and promoting shared grid connection facilities or energy hubs to address the high cost of grid connection. • For solar power, policy focus is shifting towards idle land and higher-acceptance sites, including industrial complexes, factory rooftops, agrivoltaics, roads, railways, agricultural waterways, schools and parking lots. A separate agrivoltaic bill passed the plenary session of the National Assembly on 7 May 2026, creating an independent institutional framework for agrivoltaic projects and proposing that certain farmland conversion permissions be deemed granted upon project approval. • RPS reform remains a core market development. The First Renewable Energy Basic Plan indicates that the existing RPS system is to be abolished and that new renewable facilities will be unified under long-term fixed-price contracts awarded through competitive bidding, with grandfathering provisions for existing RPS projects. • For power purchase agreements (PPA), the govern- ment continues to support broader corporate pro- curement of renewable energy. The policy direction includes easing PPA regulations, creating a PPA brokerage market and allowing the resale of RECs from excess PPA generation, although practical implementation will need to be assessed together with network availability and KEPCO-related settle- ment mechanics. 11th Basic Plan Confirmed and 12th Basic Plan Preparation On 21 February 2025, the 11th Basic Plan for Supply and Demand of Power (2024–2038) was confirmed. It provides for the management of ageing thermal power facilities, the promotion of nuclear power, the expan- sion of renewable energy and clean hydrogen/ammo- nia power generation, and the early roll-out of battery energy storage system (BESS) as a means of mitigat- ing renewable energy volatility and output control.
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