SOUTH KOREA Trends and Developments Contributed by: Michael Chang, Sang-Hyun Lee, Su-Yong Jung and Jae-Wook Ryu, Shin & Kim
Grid availability, distributed energy and power grid impact assessment The Special Act on the Activation of Distributed Ener- gy and its subordinate regulations came into effect in June 2024, determining the scope of distributed energy and distributed energy business as well as the entities required to install distributed energy facilities. These regulations are anticipated to promote a more decentralised, regionally focused energy supply sys- tem and new industries such as distributed energy businesses. For purposes of this discussion, the more important trend is that grid availability is increasingly being treated as an early project issue, not only a con- nection issue to be addressed near the end of devel- opment. Power grid impact assessment is part of this shift. Project operators intending to use 10 MW or more of electricity through new construction or capac- ity expansion in regions designated for power grid impact assessments will be required to complete such assessments. It is anticipated that businesses intending to construct new data centres will be pri- mary targets of the assessments. The assessments are expected to consider factors such as the avail- ability of power supply in the grid-connected area, local community acceptance, the level of regional underdevelopment and capacity to maintain proper voltage levels. Accordingly, thorough pre-assessment and preparation for grid connection will be necessary. MCEE’s 2026 plan points in the same direction. It refers to strengthening oversight of delayed projects, switching from a first-come-first-served system to a priority-access system based on grid necessity, and legal amendments to grant priority grid access for public-interest projects. These measures appear intended to address concerns such as grid hoard- ing and the trading of grid connection rights, while directing limited network capacity towards projects
energy policy framework with international standards in the effort to support South Korea’s carbon neutral- ity goals. One important change is the separation of “new ener- gy” from “renewable energy”. Provisions relating to new energy sources such as hydrogen and fuel cells are transferred to the Hydrogen Economy Promotion and Hydrogen Safety Management Act. This separa- tion is expected to strengthen policy independence and to focus national efforts on solar and wind power. The amendment also addresses setback regulation. Indiscriminate setback distances set by local govern- ments for solar power projects are, in principle, pro- hibited when granting development permits. Excep- tions include the preservation of historical and cultural areas, with other exceptions to be set out in the Presi- dential Decree. This will require ongoing monitoring. Improving South Korea’s renewable energy industry On 19 May 2026, at the 38th Energy Committee Meet- ing, the Ministry of Climate, Energy and Environment announced the First Renewable Energy Basic Plan. The First Renewable Energy Basic Plan sets out a broader policy package for improving South Korea’s renewable energy industry. For solar power, the plan seeks to expand deployment through the use of idle land, including industrial complexes and factory roof- tops, agrivoltaic projects, roads, railways and agri- cultural waterways, schools and parking lots. It also provides support for repowering solar facilities that are over 15 years old and for addressing grid connection issues arising from increased capacity. • Offshore wind power – MCEE plans to expand the offshore wind supply chain and promote the construction of shared grid connection facilities. By 2030, new support ports are expected to be constructed to expand equipment supply capacity, and two large 15 MW-class wind turbine installa- tion vessels are expected to be secured, with more to follow. To address the high costs of grid con- nection, construction of shared offshore wind grid connection facilities, or energy hubs, is planned. • Solar power – Agrivoltaic projects are being brought into an independent institutional frame-
that better support system stability. Renewable Energy Act amendment
On 12 February 2026, an amendment to the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy passed the National Assembly Plenary Session. The amendment is signifi- cant as it aims to resolve uncertainties and realign the
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