Mayor Kim Kyungil: "First Step in Direct PPA Project... Paju Moves Forward as a Leading City in Energy Transition"

Paju City Breaks Ground on First Public Renewable Energy Power Plant
Launches Nation’s First Direct Power Purchase Agreement Project
Signs Initial Contracts with Nine Local SMEs
Supporting RE100 Export Competitiveness with Public Renewable Energy
Laying the Foundation for the Energy Highway in Northern Gyeonggi Province

Paju City in Gyeonggi Province has ushered in a new era as the first local government in South Korea to directly supply renewable energy produced by the municipality to local small and medium-sized enterprises (SMEs).

Kim Kyung-il, Mayor of Paju, and other attendees are performing the groundbreaking ceremony at the "Paju Public Renewable Energy No.1 Power Plant" on the 2nd. Provided by Paju City

The city announced that it held a groundbreaking ceremony for the "Paju Public Renewable Energy No. 1 Power Plant" on December 2, officially commencing the construction schedule.

The ceremony was attended by representatives and employees from the project operator Paju City, Paju City Tourism Corporation, SK Innovation E&S-which supports electricity supply brokerage-Shinsung ENG, the construction company, as well as nine local SMEs (Kyungsung Industry Co., Ltd., Samsung Special Brake Co., Ltd., Sunil Safe Manufacturing, Spacetalk Co., Ltd., Sindo Industry Co., Ltd., C&C Co., Ltd., Chilseong Co., Ltd., Hanul Herbal Medicine Co., Ltd., and Hyunjin Co., Ltd.), which signed a direct power purchase agreement (PPA) with Paju City in June. Together, they marked the official launch of the "Paju-Style RE100" model.

This project, which will build a 1,040kW solar power plant on idle land at the Munsan Water Purification Plant, is a core initiative of Paju City's "Basic Energy" policy. It aims to ensure a stable supply of renewable energy and stabilize electricity costs for local export-oriented SMEs that are required by overseas trading partners to meet RE100 standards.

The construction is expected to be completed by April next year at the latest. Once the power plant begins generating electricity, the local SMEs that have signed direct PPAs with the city will be able to receive renewable energy at a fixed rate of 160 won per kWh for 30 years. This model offers greater economic benefits compared to the Korea Electric Power Corporation's average electricity rates, which have risen by more than 5% annually. Paju City plans to actively support local SMEs in meeting RE100 requirements and enhancing their export competitiveness through this direct PPA business model.

The construction of this power plant is particularly meaningful as it is the first case of realizing the so-called "local production, local consumption" model, which has been emphasized since the current administration took office. The city plans to use this solar power plant as a starting point to expand renewable energy facilities by maximizing the use of idle spaces throughout the city, thereby solidifying its position as the practical foundation for building an "energy highway" in northern Gyeonggi Province.

Kim Kyungil, Mayor of Paju City, is giving a greeting at the groundbreaking ceremony of the "Paju Public Renewable Energy No.1 Power Plant" on the 2nd. Provided by Paju City

Kim Kyungil, Mayor of Paju, stated, "This groundbreaking is the first demonstration case of a local government directly supplying publicly produced renewable energy to local businesses. It is a significant step forward for Paju City as a leader in energy transition policy." He added, "The local government will responsibly establish a renewable energy foundation so that SMEs can overcome international trade barriers."

Paju City plans to use the construction of this power plant as an opportunity to complete the nation’s first public renewable energy direct PPA model and to advance as an RE100 city that grows together with local businesses.

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