Ministry of Industry to Announce First Hydrogen Power Bidding on 9th... Winner to be Selected in August

650GWh of Bidding Volume in the First Half of the Year

The Ministry of Trade, Industry and Energy announced on the 9th that it will hold the first hydrogen power generation bidding and select the successful bidder in August.

An official from the ministry stated, "With the hydrogen power generation bidding announcement on the 9th, we are launching the hydrogen power generation bidding market," adding, "Going forward, hydrogen power generation will promote competition among power generation technologies and induce a reduction in power generation costs through the bidding market."

The hydrogen power generation bidding market is a system for purchasing and supplying electricity produced using hydrogen or hydrogen compounds (such as ammonia) as fuel. Buyers, including Korea Electric Power Corporation and district electricity business operators, must purchase hydrogen power generation volumes according to the Ministry's announced guidelines, considering the basic power supply and demand plan. Suppliers, the hydrogen power generation businesses, supply the hydrogen power generation volumes to buyers through competitive bidding.

This year's bidding market will be held once each in the first and second half of the year, with this announcement pertaining to the first half bidding. The announcement was made on the 9th through the market management institution (Korea Power Exchange). The bidding volume is 650 GWh, half of this year's total bidding volume of 1,300 GWh, and the final successful bidder will be selected in mid-August through a comprehensive evaluation of price indicators such as power generation unit cost, and non-price indicators including power system impact and industrial and economic contributions.

An official from the ministry explained, "Until now, fuel cells, which are part of hydrogen power generation, have been promoted through the Renewable Energy Supply Obligation system," adding, "However, unlike solar or wind power, fuel costs are incurred, and considering the entry of hydrogen power generation technologies such as hydrogen turbines, we have established the hydrogen power generation bidding market." Detailed bidding information can be found on the Korea Power Exchange website.