|Year:||2001 (Adjusted 2008)|
|Date Effective:||2001 (Adjusted 2008)|
|Date Ended:||2011 (December 31st)|
|Policy Type:||Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums|
|Renewable Energy Policy Targets:||Wind, Bioenergy, Biomass for power, Hydropower, Ocean, Tidal, Solar, Solar photovoltaic, Multiple RE Sources|
|Size of Plant Targeted:||Small and Large|
|Agency:||Ministry of Trade, Industry & Energy(MOTIE), Korea Energy Management Corporation(KEMCO)|
|Renewable Energy Description:|
The Electricity Business Law mandates both the purchase and the fixed price of electricity generated from renewable sources. Any renewable energy generator that is connected to the grid is eligible to sell electricity to the grid at fixed prices. KEPCO is responsible for purchasing electricity from renewables.
The establishment of a differentiated feed-in tariff is one of the governments principal means of promoting new and renewable energy. The government guarantees fixed rates for five years for small hydropower, biomass and waste, and guarantees the rates for 15 years for wind and photovoltaics.
The feed-in tariff varies by technology:
Renewable electricity generators bid into the Korea Power Exchange (KPX). The government compensates eligible renewable energy generators for any shortfall between the pool price and the feed-in tariff.
In 2002, the government set an upper limit of support for renewables at 250 MW for wind and 20 MW for solar. The guaranteed feed-in tariff is granted on a first-come, first-served basis up to the limit.
The government has paid KRW 11.7 billion in subsidies since the programme began in 2002, up through 2004, to 110 MW of renewable power (40 different power plants).
The total power generated by the support system was 664 662 MWh as of the end of April 2005.
The Feed-in tariff (FIT) system was modified in 2008, with modifications coming into effect as of October 2008. The standard price of solar photovoltaics decreased, and the photovoltaics capacity limit of FIT increased from 100 MW to 500 MW. Customers can choose whether to apply for a 15 or 20 year support.
Starting in 2009, a decremental rate will be applied to solar PV of 4% per year and to wind power of 2% per year. In addition, a decremental rate of 3% per year will be applied to fuel cells starting 2010. The standard price for each of these power sources will be applied for 15 years.
Solar PV, wind power and fuel cells will be required to have accumulated facility capacities of 500MW, 1000MW, 50MW respectively to qualify for feed in tariff.
Last modified: Tue, 13 May 2014 10:24:43 CEST