KPX: "First Competitive Bidding for Hydrogen Power Results in 10% Lower Generation Cost"

2023 First Half General Hydrogen Power Generation Bidding Market Results
Final Awardees Determined for 5 Power Plants

The competitive bidding for hydrogen power generation, conducted for the first time this year, resulted in a reduction of about 10% in the power generation cost.

The Korea Power Exchange, the managing organization of the hydrogen power generation bidding market, announced on the 9th that it had selected five power plants as the final successful bidders in the first half of 2023.

The Korea Power Exchange issued the bidding announcement on June 9th this year. A total of 73 power plants (43 companies) participated in the bidding for a scale of 30,878 GWh (518 MW). The competition rate recorded was 5.97:1. After deliberation by an evaluation committee composed of external experts and the Hydrogen Power Generation Bidding Market Committee, the Korea Power Exchange selected 715 GWh and five power plants as the final successful bidders.

The bidding results showed a reduction effect in power generation costs due to competition among power generation technologies. According to the Ministry of Trade, Industry and Energy, compared to the past Renewable Portfolio Standard (RPS), the average winning bid price was about 10% lower. Additionally, there was an effect of inducing installation of distributed power sources. The selected power generation capacity was less than 40 MW, meeting the criteria for distributed power sources under the Electricity Business Act, and power plants located near demand areas such as the metropolitan area, where supply is insufficient compared to power demand, were selected.

Lee Ok-heon, Director of the Hydrogen Economy Policy Division at the Ministry of Trade, Industry and Energy, said, "We hope that hydrogen power generation, through the bidding market, will demonstrate its advantages such as greenhouse gas reduction and distributed power generation, and contribute to the revitalization of Korea's industry and economy." He added, "We will supplement the shortcomings found in this bidding and open the second half bidding market around the end of August."

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