Selecting Electricity Generated from Renewable Energy Sources

Implementation of Guidelines for Third-Party Power Trading Contracts... Support for RE100 Activation

[Sejong=Asia Economy Reporter Kwon Haeyoung] From the 21st, electricity users such as companies will be able to purchase electricity produced solely from renewable energy from renewable energy power producers.

The Ministry of Trade, Industry and Energy announced that it will implement guidelines on third-party electricity trading contracts for renewable energy power generation, which include this content.

Until now, in South Korea, electricity could only be purchased in the electricity market operated by the Korea Power Exchange. For this reason, even if users wanted to, there was no way to purchase electricity produced only from renewable energy. While global companies are participating in the 'RE 100' campaign to use 100% electricity produced from renewable energy, Korean companies had limited ways to participate.

With the implementation of this third-party electricity trading contract, electricity users with contracted power exceeding 1 megawatt (MW) will be able to trade electricity produced from renewable energy outside the electricity market. Once this system is implemented, renewable energy power producers and electricity retailers, as well as electricity retailers and electricity users, can each enter into contracts to enable renewable energy electricity trading. When the basic contract information is provided to the Korea Energy Agency, the agency verifies the renewable energy usage performance and issues a 'Certificate of Renewable Energy Usage,' which electricity users can utilize for global RE100 compliance and other purposes.

Renewable energy usage through this contract can be recognized as a greenhouse gas reduction achievement, and specific details can be confirmed in the Ministry of Environment guidelines.

An official from the Ministry of Trade, Industry and Energy stated, "Not only the newly introduced third-party electricity trading contract but also the amendment to the Electricity Business Act for the introduction of a direct electricity trading contract system that does not involve Korea Electric Power Corporation as an intermediary passed the National Assembly last month," adding, "Accordingly, we will carefully review the revision of subordinate laws such as enforcement decrees and detailed system design."