Energy Corporation Holds First Half RPS Fixed-Price Contract Competitive Bidding... 'Record High' 1200MW Scale

Priority Selection of Small-Scale Facilities Under 100kW at 50%
"Contributing to REC Price Stabilization and Creating a Stable Investment Environment for Small-Scale Operators"

[Asia Economy Reporter Moon Chaeseok] The Korea Energy Agency announced on the 31st the competitive bidding notice for fixed-price contracts under the Renewable Portfolio Standard (RPS) for the first half of this year.

The agency is selecting long-term contract project operators for 20 years for the trading of Renewable Energy Certificates (REC) between 22 renewable energy suppliers and power producers, including Korea Hydro & Nuclear Power.

The fixed-price contract competitive bidding system is implemented to create a stable investment environment for solar power producers amid fluctuations in the System Marginal Price (SMP).

The agency stated that it requested six obligated suppliers?Korea South-East Power, Korea Hydro & Nuclear Power, Korea Southern Power, Korea East-West Power, Korea Western Power, and Korea Midland Power?to select 200 MW each. The total requested capacity is 1,200 MW, more than double the 500 MW from the second half of last year.

The contract price between solar power producers and obligated suppliers is the sum of the SMP and REC prices. Power producers can choose between a "variable contract," where total revenue changes according to SMP fluctuations, and a "fixed contract," where total revenue remains fixed regardless of SMP changes.

To protect small-scale operators, the agency prioritizes selecting small-scale operators with less than 100 kW for at least 50% of the selected capacity.

To foster the energy storage system (ESS) related industry and attract investment, ESS facilities linked with solar power are also included in the bidding targets.

Additionally, for facilities of 1 MW or more, an extended completion deadline will be granted. The agency expects an increase in large-scale solar power bids as the competitive bidding scale grows.

Applicants wishing to participate in the bidding should check the application period according to their facility capacity and submit their bid participation forms and attached documents through the agency’s New and Renewable Energy Center RPS fixed-price contract competitive bidding system.

If the facility capacity is less than 100 kW, applications are accepted from the 2nd to the 10th of next month; if 100 kW or more, from the 13th to the 17th. The final selection results will be announced on May 26. Selected operators plan to sign 20-year REC sales contracts with obligated suppliers in June.

Lee Sang-hoon, head of the agency’s New and Renewable Energy Center, said, "Since this bidding is the largest ever conducted, we expect it to contribute to stabilizing REC prices and creating a stable investment environment for small-scale operators."

For more detailed information regarding this bidding notice, please visit the agency’s New and Renewable Energy Center website.

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