Second Half Hydrogen Power Competitive Bidding Results in Over 5% Reduction in Power Generation Cost

2023 Second Half General Hydrogen Power Generation Competitive Bidding Results

The results of the general hydrogen power generation bidding in the second half of the year showed that the power generation unit price decreased by more than 5% compared to the first half.

The Korea Power Exchange, the managing organization of the hydrogen power generation bidding market, announced the "2023 Second Half General Hydrogen Power Generation Competitive Bidding Results" on the 14th.

The Korea Power Exchange issued the bidding announcement on August 31 this year. A total of 88 power plants (23 companies) participated in the bidding for a scale of 3,084 GWh (370 MW). The competition rate recorded was 4.74:1.

After deliberation by an evaluation committee composed of external experts and the Hydrogen Power Generation Bidding Market Committee, the Korea Power Exchange finalized 715 GWh and 19 power plants as successful bidders. Although the volume awarded remained the same as in the first half, the number of selected power plants increased from 5 to 19.

In this second half bidding, the power generation unit price was further reduced through competition compared to the first half. According to the Ministry of Trade, Industry and Energy, it decreased by more than 5% compared to the first half and dropped about 15% compared to the past Renewable Portfolio Standard (RPS) system.

The characteristics of distributed power sources were also strengthened. The average facility capacity of the awarded power plants decreased from 17.9 MW (first half) to 4.6 MW (second half), and power plants located near demand sites were mainly selected. In particular, many small-scale power generators under 1 MW, such as energy super stations, were awarded in the second half, which the Ministry expects will contribute to the activation of distributed power sources.

Park Chan-gi, Director of Hydrogen Economy Policy at the Ministry of Trade, Industry and Energy, said, "The hydrogen power generation bidding market, operated for the first time this year, achieved its intended results such as lowering power generation unit prices and inducing distributed power sources," adding, "We will steadily prepare the clean hydrogen power generation bidding market to be launched next year through communication with the industry and foster a clean hydrogen ecosystem."

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