Gwangju City Uncovers Hidden Revenue by Selling Solar Certificates... 60 Million Won in Income

Sale of 853 RECs on the spot market
Expected revenue of 2 billion won by 2030

Gwangju Metropolitan City has generated revenue by selling renewable energy certificates created in the course of solar power generation. The city is managing the certificates generated from facilities installed with city funds as public assets and using them as a financial resource.

The city of Gwangju announced on the 10th that it had secured approximately 60 million won in non-tax revenue by selling 853 Renewable Energy Certificates (RECs), obtained through a city-funded support program, on the Korea Power Exchange spot market on the 3rd.

The volume sold this time consists of 844 RECs secured through the "Citizen Solar Power Plant Construction Support Project" and 9 RECs secured through the "Soundproof Wall and Soundproof Tunnel Solar Power Technology Development Demonstration Project." When installing solar power generation facilities, Gwangju City has been securing and managing the corresponding certificates as city-owned assets based on the proportion of city subsidies provided.

A Renewable Energy Certificate (REC) is a certificate that verifies electricity produced by renewable energy facilities such as solar power plants, and it can be traded separately from electricity sales revenue. It is issued to power generation business operators and serves as a system that allows additional revenue to be generated during the course of renewable energy investment.

RECs are valid for three years after issuance, and if they are not sold within that period, their asset value expires. Gwangju City analyzed market price trends and used the Korea Power Exchange's "Renewable One-Stop Business Information Integrated Portal" to proceed with a public sale before the certificates reached the end of their validity period.

The funds secured through this sale will be reallocated to budget items for public-interest projects for citizens, such as support for energy-vulnerable groups and the expansion of renewable energy.

Gwangju City has provided a total of 6.2 billion won in support to promote 7 MW of solar power projects, and expects to earn approximately 2 billion won in revenue from the associated RECs by 2030. Taking into account the lifespan of the solar facilities, the city expects that if around 90,200 RECs are issued over 20 years, approximately 6.3 billion won in non-tax revenue will be generated based on current prices.

Son Dooyoung, head of the Artificial Intelligence Office, said, "This sale of Renewable Energy Certificates is a case where we did not merely hold shared property, but actively managed it to improve administrative efficiency," adding, "We will continue to build a virtuous cycle in which public assets created with citizens' taxes are returned to them through the spread of renewable energy and enhanced energy welfare."

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