Government Announces Amendment to Law Tailored for Solar Power Facilities

Ministry of Industry to Enforce Amendments to Renewable Energy Act and Electricity Business Act on 31st
Extension of National and Public Land Usage Period from 20 to 30 Years
Aligned with Solar Power Facility Lifespan of Over 25 Years

[Asia Economy Reporter Moon Chaeseok] The government announced that a bill to extend the lease period of national and public land to 30 years, in line with the lifespan of solar power facilities exceeding 25 years, has been promulgated. The law was amended to expand the distribution of new and renewable energy by utilizing national and public land.

On the 31st, the Ministry of Trade, Industry and Energy announced that the amendments to the "Act on the Development, Use and Promotion of New and Renewable Energy" (New and Renewable Energy Act) and the "Electricity Business Act" will take effect six months later.

However, the establishment of deliberation items for the New and Renewable Energy Policy Council will be implemented immediately on the date of promulgation. The relaxation of local ordinance procedures for constructing permanent facilities on public property will be applied three months later.

The approval by city and provincial governors regarding electricity business-related permits will be implemented from January 1 of next year, considering the preparation period.

The amendment includes institutional improvements to strengthen support for the promotion of renewable energy distribution and to mitigate side effects, as part of the "Renewable Energy 3020 Implementation Plan" announced in December 2017.

A notable policy is the extension of the lease period for public land to 30 years. Currently, leases can be rented for 10 years and extended once up to 20 years, but with the legal amendment, it can be extended once more to 30 years.

The lease rate for national land will be lowered from the current 5% to 2.5%. The lease rate for public land will remain at 0.5%.

When constructing permanent facilities on public land, it will be allowed with only the consent of the local council without the need for ordinance enactment.

Additionally, the amendments to the New and Renewable Energy Act include ▲ incorporating regulatory improvements into the deliberation items of the New and Renewable Energy Policy Council to promote improvements, ▲ requiring distribution project implementing agencies to establish and execute post-management plans for facilities, and ▲ obligating these agencies to enforce annual post-management duties on facility constructors.

The amendments to the Electricity Business Act include ▲ collecting residents' opinions before applying for new solar, wind, and fuel cell permits, ▲ unifying the permit stage for small-scale solar electricity businesses, ▲ recognizing exceptions if there are justifiable reasons such as difficulties in business operation during the transfer or acquisition of solar power projects, and ▲ imposing obligations for intermediate forest restoration.

An official from the Ministry of Trade, Industry and Energy stated, "Through the legal amendments, we will improve the support system for new and renewable energy distribution to achieve the Renewable Energy 3020 goals," and added, "We also plan to actively prepare for any side effects that may arise from the expansion of new and renewable energy."

This content was produced with the assistance of AI translation services.