Expansion of Flexibility in Renewable Energy Supply Obligation RPS System... Effective from the 1st of Next Month

[Asia Economy Reporter Kim Bo-kyung] Starting from the 1st of next month, the Renewable Portfolio Standard (RPS) will allow some of the next year's mandatory supply volume to be fulfilled in advance, expanding flexibility.

The Ministry of Trade, Industry and Energy announced on the 30th that it has partially revised the 'RPS Management and Operation Guidelines' and will implement them from July 1st. This revision was promoted to improve the RPS system.

RPS is a system where large-scale power producers (suppliers) with 500,000 kW or more must generate and supply 6% of their total power generation from renewable energy sources such as solar and wind power.

The revised guidelines include early fulfillment volumes within a certain range (20% of the current year's mandatory volume) in the cost compensation targets, allowing power producers to fulfill part of the next year's obligation in advance.

An official from the Ministry of Trade, Industry and Energy said, "Suppliers can postpone or exceed their obligation fulfillment depending on market conditions," adding, "It is also possible to adjust the supply and demand in the Renewable Energy Certificate (REC) market."

RECs are certificates proving that electricity was generated from renewable energy sources such as solar, hydro, wind, and bioenergy. They can be sold to power plants with renewable energy supply obligations or traded like stocks through the Korea Power Exchange.

The revision also aims to enhance fire safety of energy storage systems (ESS) linked to renewable energy by applying a '0' weighting to the REC for the relevant month if the government's charging rate standards (80% indoors, 90% outdoors) are exceeded.

Additionally, for solar-linked ESS, the maximum output must be maintained at 70% or less of the solar facility capacity.

The RPS fixed-price contract competitive bidding method introduced in July 2018 has also been changed.

Previously, to protect small-scale operators, more than 50% of the total selected capacity was prioritized for facilities under 100 kW, but going forward, capacity ranges and selection proportions can be flexibly determined according to the status of facility deployment.

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