Implementation of 2022 RPS 10% and Designation System for Cluster Complexes Including Southwest Sea Offshore Wind Power

Government: "Balanced Measures Including Expansion of New and Renewable Energy Supply and Mitigation of Safety and Speculation Side Effects"

President Moon Jae-in emphasizes the importance of strengthening offshore wind power competitiveness and green energy at the 'Korean New Deal, Green Energy On-site - The Wind Blows' event held on the 17th at the offshore wind power demonstration complex in Buan-gun, Jeonbuk. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The Renewable Portfolio Standard (RPS) for new and renewable energy will be raised by 1 percentage point each year until 2022. The new and renewable energy cluster system will be implemented to increase the deployment of facilities such as the offshore wind power complex in the southwestern region of Jeollabuk-do. Facilities installed through government supply projects for new and renewable energy will require mandatory annual post-management by the constructors.

On the 28th, the Ministry of Trade, Industry and Energy announced that it has revised and promulgated subordinate regulations following amendments to the "New and Renewable Energy Development, Use, and Supply Promotion Act (New and Renewable Energy Act)" and the "Electricity Business Act," which will take effect from the 1st of next month.

The Ministry of Trade, Industry and Energy stated that the revised laws include balanced measures for the promotion of new and renewable energy supply, such as cluster complex projects, as well as safety and speculation management measures. Through this, they aim to implement the "Renewable Energy 3020 Implementation Plan (supplying 30% of national energy from renewable sources by 2020)" and the "Green New Deal" policy.

◆ RPS ratio to increase by 1%P until 2022... Implementation of cluster complex designation system including southwestern offshore wind power

Floating offshore wind power generation system model.

First, through amendments to the New and Renewable Energy Act, the RPS mandatory ratio will increase from 8% in 2021 to 9%, and from 9% in 2022 to 10%. After 2023, the current statutory upper limit of 10% will be maintained.

However, if the amendment bill proposed by Kim Seonghwan of the Democratic Party of Korea in June passes, the 10% cap may be abolished.

The mandatory ratio for new and renewable energy in the public sector will be expanded to 40% by 2030.

The implementation of the cluster complex designation system is also noteworthy. Once the system is implemented, it will accelerate the deployment of facilities such as the Jeonbuk southwestern offshore wind power complex, the largest offshore wind power complex in Korea equivalent to two new nuclear power plants.

Local governments that have secured resident acceptance can establish a business plan and apply to the Ministry of Trade, Industry and Energy, which will designate the project site through review and select the implementing agency (local government head).

Designation will consider various factors including resources suitable for solar and wind power, potential for new and renewable energy development, site and infrastructure, resident acceptance and environmental friendliness, development area, and contribution to the new and renewable energy industry.

Earlier in July, Minister Sung Yunmo of the Ministry of Trade, Industry and Energy stated, "Once the new renewable energy cluster complex system is introduced, after reviewing the requirements, we plan to designate the Jeonbuk southwestern offshore wind power complex as the first cluster complex."

◆ Strengthening post-management regulations due to solar landslides

On the afternoon of August 8th, solar power facilities in Daerang-dong, Jecheon-si, Chungbuk were damaged by a landslide. (Image source=Yonhap News)

The government has stipulated the entities responsible for post-management plans and procedures for new and renewable energy facilities installed through government supply projects.

From now on, the head of the implementing agency must establish and implement a post-management plan annually. Constructors are required to conduct post-management once a year for facilities within three years of installation.

The results of post-management by the implementing agency head must be submitted to the New and Renewable Energy Center by the end of June each year. The center will compile these and report to the government by the end of July, establishing a procedural system.

Through amendments to the Electricity Business Act, if solar power facilities on mountainous terrain are damaged and power transactions occur without interim restoration, a business suspension order can be issued.

If power transactions occur without completing interim restoration, upon request from the head of the Korea Forest Service, the Minister of Trade, Industry and Energy can issue a business suspension order within six months. Violating the order may result in business suspension and cancellation of power generation business permits.

◆ Expansion of financial support for small-scale new and renewable energy businesses

[Image source=Yonhap News]

A legal basis has been established to provide financial support to small-scale businesses with low credit ratings and collateral capabilities.

A budget of 50 billion KRW (government proposal) has been allocated for next year for the Green New Deal's green guarantee project.

Amendments to the Electricity Business Act have created exceptions allowing solar power generation business operators to transfer and acquire businesses, acquire stocks, and merge or split corporations before starting operations.

In principle, transfers and acquisitions can only occur after business commencement, but if the exceptions apply, these can be done before starting the business.

The exceptions include ▲ dissolution, death, or serious illness or accident equivalent thereto ▲ filing for bankruptcy or commencement of rehabilitation procedures or enforcement procedures under the Civil Execution Act ▲ natural disasters, fires, or equivalent disasters ▲ public interest reasons or cases recognized by the Minister of Trade, Industry and Energy as making business operation difficult.

Additionally, the Ministry of Trade, Industry and Energy has expanded the scope of state-owned property available for new and renewable energy projects through amendments to the New and Renewable Energy Act.

Through amendments to the Electricity Business Act, measures such as ▲ prior notification of solar, wind, and fuel cell projects to gather local residents' opinions ▲ allowing charging businesses with 'billing-type outlets' that have electricity metering and fee charging functions for electric vehicle charging are being promoted.

An official from the Ministry of Trade, Industry and Energy said, "The revised laws include measures to promote new and renewable energy supply, safety management, and mitigation of side effects such as speculative activities, and are expected to contribute to creating a sound environment for the expansion of renewable energy."

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