Buying Renewable Energy at 10 Won per 1kWh... KEPCO Implements 'Green Premium'

January 5 - February 5 Bid Announcement and Application, Opening on the 8th
KEPCO "Enhancing Corporate Competitiveness through RE100 Implementation"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Moon Chaeseok] From this year, companies will be able to purchase renewable energy domestically at 10 KRW per 1kWh.

On the 5th, Korea Electric Power Corporation (KEPCO) announced that it will officially implement the "Green Premium," part of the "Korean-style RE100 system (K-RE100)," starting this month. The Green Premium is a system where electricity consumers, including companies and households, pay a premium through bidding to KEPCO to purchase renewable energy.

Consumers who wish to purchase renewable energy by obtaining the Green Premium must pay the cost separately from their electricity bill. Afterward, they receive a "Renewable Energy Usage Certificate" from the Korea Energy Agency, which qualifies them to join K-RE100.

Source=Korea Electric Power Corporation

Earlier, at the "Renewable Energy Usage Deliberation Committee" held on the 21st of last month, the sales volume of the Green Premium for this year, the minimum bid price, and the criteria for successful bids were finalized. The initial successful bid volume is a total of 170,827 TWh (terawatt-hours), and the minimum bid price is 10 KRW per 1kWh.

From today until 6 p.m. on the 5th of next month, announcements and applications for participation in the Green Premium bidding will be accepted. On the 8th of next month, the successful bid volume and price will be confirmed, and the official contract will be signed on the 22nd of the same month.

KEPCO will individually notify successful bidders of the bid volume and price on the 8th of next month, and only the total successful bid volume and highest price will be posted on the KEPCO website. The contract period lasts until December 31 of this year. The Green Premium fee must be paid monthly. The Renewable Energy Usage Certificate will be issued quarterly.

Source=Korea Electric Power Corporation

Some suspect that the surplus difference after implementing the K-RE100 and Green Premium system might go back to KEPCO, but KEPCO clearly denied this.

A KEPCO official stated, "The Green Premium paid by consumers will be used as funding for renewable energy investment projects promoted by the Korea Energy Agency in accordance with relevant laws and regulations."

According to KEPCO and the Korea Energy Agency, the legal basis for the Korea Energy Agency to receive Green Premium funds is Article 45 of the Enforcement Decree of the Energy Use Rationalization Act, and the authority to reinvest the funds is specified in the Ministry of Trade, Industry and Energy's "Regulations on Support for New and Renewable Energy Facilities (Notice)."

A KEPCO official added, "By implementing the Green Premium as part of K-RE100, corporate global competitiveness will increase, and consumers' practice of eco-friendly values will spread."

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