Reduce Risk Burden of Public Enterprises' Priority Purchase of Energy New Technologies and Equipment through Innovation Procurement Committee

7th Energy Public Enterprise R&D Council
Ministry of Trade, Industry and Energy Announces 'Measures to Activate Public Procurement of Energy Technology Development Achievements'

[Sejong=Asia Economy Reporter Joo Sang-don] The government has decided to review and determine the procurement methods for new technologies and equipment in the energy sector of public enterprises through the 'Innovation Procurement Committee.' This aims to reduce the burden on public enterprises for priority purchasing of new technologies.

The Ministry of Trade, Industry and Energy will hold the '7th Energy Public Enterprise Council' at COEX, Seoul, on the afternoon of the 31st, where it will announce the 'Measures to Activate Public Procurement of Energy Technology Development Achievements' containing these details.

Until now, public enterprises often did not make priority purchases despite being able to, due to burdens related to decision-making such as risks of accidents or failures, audits, and concerns about complaints. According to the ministry, only 59 out of 134 selected developed products (44%) were contracted through priority purchasing over the past three years.

Accordingly, an Innovation Procurement Committee composed of decision-makers and experts, including CEOs and CTOs of public enterprises, technical experts, and dedicated agencies, will review and decide on procurement methods.

To directly link technology development achievements to procurement, the demands of demand-side public enterprises will be reflected in the technology development process, and connections with subsequent verification projects will be strengthened. To spread excellent technology development achievements, the utilization of the designated developed products system operated by public enterprises will be increased by linking it so that products recognized for public value and innovation can also be designated as developed selected products.

Additionally, a 'Public Enterprise R&D Achievement Utilization Survey' will be promoted to systematize the utilization of public enterprise research and development (R&D) achievements and procurement information, which had been inadequately managed. An 'Innovation Procurement Forum' will also be operated to share demand-linked R&D success cases and developed selected product information, supporting joint marketing.

Joo Young-jun, Director of the Energy Resources Office at the Ministry of Trade, Industry and Energy, said, "The public sector plays a crucial role in creating new markets in the energy field. We will first establish the purchase of technology development achievements by public enterprises leading the energy industry and focus on spreading this to the private sector."

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