SOUTH KOREA Trends and Developments Contributed by: Michael Chang, Sang-Hyun Lee, Su-Yong Jung and Jae-Wook Ryu, Shin & Kim
Powering South Korea in 2026 and Beyond South Korean government’s energy policy direction On 1 February 2026, the Ministry of Climate, Energy and Environment (MCEE) announced its 2026 plan, with the goal of deploying 100 GW of renewable ener- gy by 2030 and expanding the power grid needed to accommodate it. The Ministry presented 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 the nuclear power policy. This follows the establishment of MCEE in October 2025 as the central authority responsible for climate and energy policy. Most energy-related functions have been transferred from the Ministry of Trade, Indus- try and Energy (MOTIE) to MCEE, other than natu- ral resources and overseas nuclear power projects. MCEE is also expected to oversee key public insti- tutions in the energy sector, including Korea Electric Power Corporation (KEPCO), Korea Power Exchange, Korea Energy Agency and the five power generation companies, and a new Director General for Power Grid Policy has been created to assist with improve- ment of the national grid. On 19 May 2026, MCEE also announced the First Renewable Energy Basic Plan. This is the first plan of its kind established under the Act on the Promo- tion of the Development, Use and Diffusion of New and Renewable Energy. The plan aims to achieve renewable energy capacity of 100 GW by 2030 and a renewable energy share of at least 30% of all power generation by 2035. It focuses on: • rapidly expanding the deployment of renewable energy; • reducing the cost of renewable energy; • fostering the renewable energy sector as a future strategic industry; • sharing income generated from renewable energy; • increasing public awareness; and
• enhancing the role of local government. H1 2026 auction for Korean fixed-price wind power contracts The Korea Energy Agency’s New and Renewable Energy Centre has continued to use competitive bid- ding for fixed-price wind power contracts as a key procurement tool. On 30 March 2026, it announced the H1 2026 auction for fixed-price wind power con- tracts. The auction is exclusively for offshore wind power, with a total announced volume of 1,800 MW: 400 MW for public sector-led fixed-bottom projects, 1,000 MW for general fixed-bottom projects and 400 MW for general floating projects. The introduction of a separate floating offshore wind allocation is significant because it recognises the different cost profile and development pathway for floating projects. The two-stage evaluation structure remains unchanged, with 50 points for the first-stage project proposal evaluation and 50 points for the second- stage price evaluation. However, the restriction that limited the selection of projects to approximately 120–150% of the announced volume during the first- stage project proposal evaluation has been removed. Bidders must also submit a port utilisation plan and a plan to respond to disruption to port use, and failure to submit these plans will result in the lowest possible score. The Ministry has adjusted the price cap to reflect mar- ket conditions, including global trends in LCOE and CAPEX for offshore wind power, and has described this as a starting point for long-term price reduction. The period for concluding the renewable energy cer- tificate (REC) sales contract remains the same as in 2025, and security over certain rights under the REC sales contract is now permitted. The auction rules also place emphasis on prior consultation with the relevant military, a mandatory bid participation under- taking and supply-chain certainty. Subject to approval of the Tender Committee, changes to equipment of an equivalent or higher grade are permitted and will not affect certain evaluation criteria, although what con- stitutes equipment of an equivalent or higher grade remains unclear.
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