Government to End Connection Guarantee System for Renewable Energy Under 1MW... FIT Contract Fake Farmers Reported

Renewable Energy Policy Innovation TF

The government has decided to terminate the 'Power Grid Connection Guarantee System for Renewable Energy Projects Under 1 MW,' which has been causing power grid burdens and inefficient grid investments, after a nine-month grace period.

On the 19th, the Ministry of Trade, Industry and Energy held a 'Renewable Energy Policy Innovation Task Force (TF)' meeting to discuss the reform plan for the unlimited grid connection system for small-scale solar projects and follow-up measures on the audit findings by the Board of Audit and Inspection.

Under the small-scale connection guarantee system, grid connection is currently guaranteed for small-scale renewable energy, and Korea Electric Power Corporation (KEPCO) bears the cost of reinforcing shared distribution facilities that power producers would otherwise have to cover. However, small-scale projects have been sporadically installed regardless of grid conditions, and since KEPCO is obligated to guarantee grid connection, this has led to inefficient grid investments and increased costs. Therefore, the system will be terminated after a certain grace period.

Going forward, the small-scale connection guarantee system will be phased out to enable efficient installation of renewable energy by considering grid connection and operational conditions. However, a sufficient grace period of nine months will be provided to ensure that currently preparing project developers do not suffer disadvantages. KEPCO plans to finalize the system reform through internal procedures including public consultation and submit it for review by the Electricity Committee by the end of January.

During the TF meeting, follow-up measures on the Board of Audit and Inspection's 'Audit on the Promotion Status of Renewable Energy Projects,' announced on the 14th of last month, were also discussed. The Ministry of Trade, Industry and Energy decided to set reasonable renewable energy targets considering realistic conditions and to enhance the rationality and consistency of renewable energy policies by fully reflecting grid and backup facilities. Additionally, swift actions such as filing complaints and contract terminations will be taken against 815 so-called fake farmers who used forged or deleted documents as farmer qualification documents when participating in the Korean-style FIT (Feed-in Tariff for small-scale solar fixed-price contract system) projects. So far, 20 violators and two companies have been reported, and contract termination requests for 93 individuals have been completed. Furthermore, to prevent the circumvention of facility division, the regulation will be revised to expand the criteria for judging the same project operator to include family members and others.

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