Government Lowers Renewable Energy Supply Target... Reset from 30% to 21.6% by 2030

E1 Jeongseon Solar Power Plant Panorama

[Asia Economy Sejong=Reporter Dongwoo Lee] The government is lowering the renewable energy supply targets and the Renewable Portfolio Standard (RPS) mandatory supply ratio. The aim is to address issues such as the weakening competitiveness of the domestic related industry caused by an inefficient supply system centered on small-scale solar power.

On the 3rd, the Ministry of Trade, Industry and Energy announced the "Renewable Energy Policy Improvement Plan in Response to Changes in the Energy Environment," which centers on resetting the renewable energy supply target to 21.6% by 2030. From 2023, the mandatory RPS ratio will be lowered, and the ratio of solar and wind power generation will be balanced at 60:40 by 2030.

The ministry pointed out, "So far, rapid expansion of renewable energy has led to problems such as an inefficient supply system centered on small-scale solar power, increased grid burden, deterioration of local acceptance, and weakening of related industrial competitiveness." It also noted that recent investigations by the Office for Government Policy Coordination found illegal and improper cases in the budget and project execution process for renewable energy.

They presented five rational, efficient, and feasible policy directions for renewable energy along with 16 tasks.

First, the government will reset the renewable energy supply target to a feasible level of 21.6% (draft of the 10th Basic Plan for Electricity Supply and Demand). This is 8.4 percentage points lower than the 2030 Nationally Determined Contribution (NDC) upward revision (30%) announced last October. The government is also considering the long-term abolition of the RPS, which requires power producers with facilities over 500MW to generate a certain ratio of electricity from solar, wind, and other renewable sources.

For offshore wind power, the government plans to strengthen the approval requirements for wind measurement devices and project permits, and prevent indiscriminate development by introducing a planned site development method. The 'RE100 Corporate Alliance' will be formed around 25 companies currently participating in RE100 to strengthen the private-led renewable energy supply base, and incentives for renewable energy and energy efficiency investments by RE100 member companies will be expanded.

Seonam District Offshore Wind Power Demonstration Complex (60MW scale)

The Renewable Energy Certificate (REC) weighting system and bidding system will be reformed to favor small-scale power producers and improve renewable energy development and supply methods. The Korean-style FIT (Feed-in Tariff) for small-scale solar power will be reconsidered for sunset or complete overhaul.

For wind power, the introduction of a bidding market will be expanded to promote competition among power producers, and in the mid-to-long term, a transition to an auction system will be considered. Offshore wind power will see strengthened approval requirements for wind measurement devices and project permits, while the planned site development method will be introduced to prevent indiscriminate development.

To prevent fraudulent and illegal receipt of government support, a joint investigation by related ministries will also be conducted. In particular, to ensure transparent and efficient execution of government budget projects such as installation subsidies and loan support, the project execution process will be comprehensively restructured by strengthening management and supervision and introducing a subsidy bidding system.

To minimize grid burden from renewable energy supply, a pilot project for planned site development will be conducted targeting specific regions where grid connection is delayed. The grid situation review requirements will be strengthened when approving power generation projects, and the unlimited connection system for solar power under 1MW will be gradually improved to promote renewable energy supply considering grid capacity.

An official from the Ministry of Trade, Industry and Energy said, "This announcement presents the future direction of renewable energy policy," adding, "More detailed plans will be reflected in the revised Renewable Energy Basic Plan scheduled for 2023."

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