SOUTH KOREA Trends and Developments Contributed by: Michael Chang, Sang-Hyun Lee, Su-Yong Jung and Jae-Wook Ryu, Shin & Kim
Conclusion The establishment of MCEE has turned the planned climate and energy control tower into an institutional reality. This restructuring could bring about impor- tant changes to the permitting system, and energy developers should closely monitor how the transfer of approval authority and the creation of new grid policy functions are implemented in practice. South Korea’s power sector is entering a phase in which policy targets are increasingly being translated into procurement rules, grid connection reforms, dis- tributed energy arrangements and more detailed pro- ject implementation requirements. The government continues to pursue a pragmatic energy mix aimed at achieving carbon neutrality in power supply through the expansion of renewables while maintaining grid stability through the complementary use of nuclear energy and other zero-carbon resources. Grid connection remains one of the most important issues for stakeholders in the sector. To address per- sistent bottlenecks in grid connection that have hin- dered renewable energy project approvals, the South Korean government has enacted the Special Act on the Expansion of the National Electricity Network and launched the so-called energy highway initiative. Whether these legislative and policy efforts will be suf- ficient to overcome long-standing permitting delays and local opposition to transmission infrastructure remains a critical issue to watch.
work. On 7 May 2026, the Bill for the Act on the Promotion and Support of Agrivoltaic Power Generation Projects passed the Plenary Session of the National Assembly. The Bill is significant in that it incorporates agrivoltaic power generation projects, which combine farming and solar power generation, into an independent approval system distinct from a power generation business licence under the Electric Utility Act. However, the Bill also imposes relatively strict limitations on who may carry out projects, reflecting policy considera- tions intended to prevent cultivated farmland from being indiscriminately used for solar projects and to ensure that projects are operated in parallel with genuine farming activities. • RPS restructuring – As previously proposed in the First Renewable Energy Basic Plan, the existing Renewable Portfolio Standard (RPS) system is to be abolished, and a transition to a fixed-price contract system through competitive bidding in the capacity contract market for each power source will be initiated. Grandfathering provisions are to be implemented for existing projects under the RPS system. This transition is intended to meet supply goals for each source of power generation, man- age supply chains and provide greater certainty for investment, although the details of the transi- tion and grandfathering arrangements should be monitored. • PPAs – Power Purchase Agreement regulations and capacity standards are also expected to be eased. In particular, lower capacity standards are intended to allow small renewable energy genera- tion facilities and small-scale electricity users to enter the PPA market, facilitating RE100 implemen- tation. The resale of Renewable Energy Certificates from excess PPA generation is expected to be permitted. Collaboration between the public and private sectors is also encouraged to establish a PPA brokerage market and to support a transition to a more private-led market in the medium to long term.
342 CHAMBERS.COM
Powered by FlippingBook