Country:Korea
Year:2012 (last updated 2017)
Policy status:In Force
Jurisdiction:National
Date Effective:2012 (last updated 2017)
Policy Type:Economic Instruments>Market-based instruments>Green certificates, Economic Instruments>Market-based instruments, Regulatory Instruments>Obligation schemes 
Renewable Energy Policy Targets:Multiple RE Sources, Multiple RE Sources, Power
Policy Sector:Electricity, Framework Policy
Size of Plant Targeted:Small and Large
Agency:New and Ministry of Trade, Industry & Energy(MOTIE), Korea Energy Management Corporation(KEMCO), Energy Center (KNERC)
URL:http://www.kemco.or.kr/new_eng/pg02/pg02040705.asp
Enforcement:Financial penalty
Penalty:Non compliance with an annual RPS targets is submitted to the financial penalty of 150% of an average REC price on every REC missing.
Renewable Energy Description:

In January 2012 the Renewable Portfolio Standard (RPS) replaced previously in place feed-in tariff system in order to accelerate Korea’s renewable energy deployment with a goal to create a competitive market environment for the sector. RPS programme requires 13 largest power companies (with installed power capacity larger than 500 MW) to steadily increase their renewable energy mix in total power generation in period of 2012-2024.

Obliged power companies to participate in RPS system:

  • Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Korea Midland Power Co., Korea Western Power Co., Korea Southern Power Co., Korea East-West Power Co., Korea District Heat Corporation, Korea Water Resources Corporation, Posco Energy, SK E&S, GS EPS, GS Power, MPC Yulchon.

Yearly RPS targets (% of RE power generation):

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2%

2.5%

3%

3%

3.5%

4%

5%

6%

7%

8%

9%

10%


RPS targets will be reviewed and adjusted every 3 years.

Target can be met by electricity generated from the following renewable energy sources:

  • Wind, solar, biomass, biogas, waste-to-energy, landfill gas, tidal, hydro, integrated gasification combined cycle (IGCC)

Power producers involved in RPS system receive certain amount of Renewable Energy Certificates (RECs).

Number of RECs allocated for produced electricity from renewable sources varies depending on the technology used:

Technology

Multiplier

Solar

Agriculture

0.7

> 30 kW

1

< 30 kW

1.2

Building integrated

1.5

Wind

Onshore

1

Offshore < 5 km

1.5

Offshore > 5 km

2

Bioenergy

Biogas

1

Biomass

1

Landfill gas

0.5

Waste-to-energy

0.5

Tidal

2

Fuel-cell

2

Hydro

1

Integrated gasification combined cycle (IGCC)

0.25

In order for power companies to meet their RPS targets they can 1) invest in renewable energy installations themselves, or 2) purchase RECs on the market.

Power companies are obliged to submit gathered RECs to the New and Renewable Energy Center (KNERC) on an annual basis.

In case of power company being unable to present required number of RECs KNERC applies a financial fine. The penalty equals to a 50% above the average market price of the REC for that year.  

This record supersedes:Feed-in Tariff for renewable energy

Last modified: Mon, 21 Aug 2017 17:15:40 CEST