South Korea’s Ministry of Climate, Energy and Environment has published draft implementing rules for the auction-based “contract market” that will replace the country’s renewable quota system from Jan. 1, 2027. It presented them at a public hearing in Seoul on Sept. 30.

Under the draft enforcement decree, Kepco will sign long-term fixed-price contracts with winning projects on behalf of all entities required to buy the power, including local electricity suppliers and large consumers that purchase directly from the market. It will settle the difference between the contract price and the wholesale power price with each project monthly and recover the costs through electricity tariffs.

The ministry plans to hold two to four tenders a year, organized by energy source, with total auction volumes rising year on year under five-year roadmaps. A solar and onshore wind roadmap is due by the end of the year, aligned with the 12th Basic Plan for Electricity Supply and Demand. The offshore wind roadmap was published in June. A public-private cost evaluation committee will set ceiling prices for each energy source annually, at a level reflecting generation costs plus a reasonable return.

Bids will be scored on price and on non-price factors, which the draft enforcement rule lists as community acceptance, contribution to the domestic renewables industry, and grid impact. ” The ministry’s examples include floating, agrivoltaic, and rooftop solar, projects in areas with spare grid capacity, community ownership, and contributions to supply chains and energy security.

Source link