Busan Institute to Host Discussion on the Role of Distributed Energy and Regional Electricity Tariff Differentiation at 10 AM on the 12th, Co-hosted by City Council and Institute
On the morning of the 12th at 10:00 AM, the city of Busan will hold the '2nd City Carbon Neutrality and Green Growth Policy Forum' at the main conference room of the Busan Research Institute Annex, under the theme of 'Introducing Regional Differential Electricity Rates.'
This forum has been organized as a venue to explore the roles of distributed energy and regional differential electricity rates, following the full implementation of the Special Act on the Promotion of Distributed Energy.
The 2nd City Carbon Neutrality and Green Growth Policy Forum is co-hosted by the city, the city council, and the Busan Research Institute.
At the forum, representatives and experts from public institutions, universities, and companies will participate to engage in in-depth discussions on 'the role of distributed energy and regional differential electricity rates in creating opportunities for carbon neutrality and green growth.'
First, for the keynote presentations: ① Lee Yusu, Senior Research Fellow at the Korea Energy Economics Institute, will present on the realities and prospects of distributed energy and differential electricity rates, and ② Kim Youngjin, Distinguished Professor at POSTECH, will present on Busan's response strategies when transitioning from a single price market (CBP) to a locational marginal pricing market (regional differential rates, LMP).
Following the presentations, a lively panel discussion will take place with experts from various fields, including Won Doohwan, Professor at Pusan National University, Lee Seungtae, Professor at Dong-A University, and Seol Hongsu, Senior Research Fellow at Gyeongbuk Research Institute.
This forum is open to anyone interested in the Distributed Energy Act and regional differential electricity rates, and participation is free without prior registration.
The Ministry of Trade, Industry and Energy (Minister Ahn Deokgeun) announced at the 31st Energy Committee meeting on May 22 that the system marginal price (SMP) will be differentiated in 2025 to reflect the grid situation of electricity produced in each region, and that retail electricity rates will also be differentiated in 2026 based on cost analysis.
The system marginal price refers to the wholesale price of electricity, which is the cost to produce 1 kWh of electricity and the unit price at which KEPCO purchases electricity from power generation companies.
This means that, in line with the enforcement of the Distributed Energy Act starting June 14, a regional differential electricity rate system will be introduced based on the location of power resources.
Accordingly, the city will establish a joint response and cooperation system with local governments near power plants, focusing on the Busan-Ulsan-Gyeongnam region, to prepare response measures and will maintain close communication with relevant government agencies.
Park Dongseok, Director General of the City’s Advanced Industry Bureau, stated, "The introduction of regional differential electricity rates is essential for balanced regional development," and added, "We expect in-depth discussions on the role of distributed energy and the forthcoming regional differential electricity rate system at the forum. The city will take the lead in revitalizing distributed energy and creating new growth engines for the region by attracting promising companies in advanced industries such as secondary batteries, semiconductors, and future mobility based on distributed energy and regional differential electricity rates."
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