Government to Launch Korea's First Village-Led Solar Power Support Project... Sharing Profits to Enhance Acceptance

Announcement of the 2022 Haetbitdure Power Plant Financial Support Plan... Pilot Selection of 10 Participating Villages in the First Half of Next Year

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government is set to launch the country's first village-led solar power support project. As part of expanding renewable energy aimed at achieving carbon neutrality by 2050, the plan is to convert the project into a 'resident participation-type' project that shares profits to increase local acceptance of solar power facilities.

The Ministry of Trade, Industry and Energy announced the financial support plan for the Haetbitdure Power Plant on the 9th, scheduled for 2022.

The Haetbitdure Power Plant is a power generation project where village residents lead the installation of commercial solar power on various sites within the village and share the profits. The concept is to expand solar power distribution to promote renewable energy while providing policy and financial support and stable profit benefits to ensure practical income improvement for village residents in farming and fishing communities.

The Ministry of Trade, Industry and Energy plans to select 10 participating villages in the first half of next year to conduct a pilot project before proceeding with the main project.

First, the project will secure acceptance by sharing profits with participating residents. Accordingly, local residents near the power plant will be able to receive incentives for projects in which they have invested a certain portion during the solar power project implementation. In particular, the project will be led by the village community, and to ensure that power generation profits lead to increased resident income, the following will be provided: ▲inclusion of Korean-style small solar power in fixed price contracts (FIT) ▲preferential weighting (0.2) for renewable energy certificates (REC) ▲long-term, low-interest financial support (up to 1.5 billion KRW limit, supporting 90% of total project cost, with a 1.75% interest rate, 5-year grace period, and 10-year installment repayment).

If you wish to participate in the power generation project, you can apply by submitting a project plan to the metropolitan local government (city/province) to which your residence (administrative village) belongs. The Korea Energy Agency will select the top 10 project applicants as participating villages for the Haetbitdure Power Plant (pilot project targets) through an evaluation committee. Detailed support requirements can be confirmed through the Ministry of Trade, Industry and Energy and the Energy Agency.

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