Sandan Gong, Full Approval for Renewable Energy Power Generation Projects in Rental Industrial Complexes

Regulatory Improvements for Industrial Complex Development Projects
Expectations for Low-Carbon Transition

The Korea Industrial Complex Corporation (President Lee Sang-hoon) announced on the 11th that it will fully allow renewable energy power generation projects within leased industrial complexes under its management through internal regulatory improvements.

Until now, leased industrial complexes only permitted self-consumption solar power generation projects utilizing factory roofs. Roof lease-type solar power generation projects were restricted under the Korea Industrial Complex Corporation's internal regulations (Property Management Regulations). In the case of the 'Sacheon Leased Exclusive Industrial Complex,' the largest aerospace industry cluster in Korea, management difficulties have intensified recently due to a sharp rise in industrial electricity rates. Tenant companies attempted to promote roof lease-type solar power generation projects as a self-help measure, but the introduction was blocked by these regulations.

The photo shows the S&K Aviation at Sacheon Rental-Only Industrial Complex. On the right side of the photo is a factory located within the general industrial complex where solar power generation facilities have been installed, but on the left side, the introduction has been delayed due to rental complex regulations.

The Korea Industrial Complex Corporation identified tenant companies' difficulties through the 'Visiting Consultation Center' and revised the relevant regulations after legal review. According to related laws, when power generation projects use renewable energy, the installation of related facilities is conditionally permitted on buildings and factory sites; however, under internal property management regulations, this was considered subleasing and only possible with the president's conditional approval.

The Corporation simplified procedures by revising internal property management regulations, thereby reducing the burden on tenant companies. Through this, tenant company A, which will host the power plant, is expected to save about 35 million KRW annually on electricity bills. Since the maintenance of roof lease-type solar power generation facilities is entirely the responsibility of the power generation operator, tenant companies can also save about 67 million KRW annually in management costs, further enhancing efficiency.

Lee Sang-hoon, President of the Korea Industrial Complex Corporation, stated, "We will continue to improve regulations that act as obstacles in cooperation with related organizations so that renewable energy power generation projects, including solar power, can be further activated within industrial complexes and that industrial complexes can take the lead in carbon neutrality."