The government will expand support for companies participating in the global private campaign RE100. Small and medium-sized enterprises (SMEs) and mid-sized companies that contract renewable energy such as solar power through a Power Purchase Agreement (PPA) will be eligible for network usage fee support for up to three years. The government also plans to support large companies with one year of network usage fees when they sign PPA contracts. Additionally, investments in solar power generation will be actively promoted using a dedicated corporate renewable energy fund.
The Ministry of Trade, Industry and Energy has decided to significantly expand the scope and duration of support for PPA transmission and distribution network usage fees to respond to the demand from RE100 participating companies and to alleviate cost burdens, thereby revitalizing the early PPA market.
RE100 is a voluntary private campaign aiming to use 100% renewable energy by 2050. Currently, 36 companies in Korea have joined RE100. A PPA (Power Purchase Agreement) refers to a contract where electricity users purchase power directly from renewable energy generators.
The government will first significantly increase the target and duration of PPA network usage fee support. For SMEs and mid-sized companies currently receiving support, the support period will be extended from one year to three years. Large companies that have joined RE100 will also receive support for one year. The Ministry of Trade, Industry and Energy expects this to reduce the cost burden for RE100-related companies and contribute to the expansion of PPAs. Details on the expanded support for PPA transmission and distribution network usage fees can be found on the Korea Energy Agency’s Renewable Energy website under the 'Electricity Trading Contract Transmission and Distribution Network Usage Fee Support Project.'
The ministry also announced that it will actively promote investments in large-scale solar projects using the RE100-dedicated corporate renewable energy fund. The corporate renewable energy fund is a dedicated fund primarily aimed at investing in renewable energy generation projects such as PPAs to support companies’ RE100 commitments, with a total capital of 250 billion KRW. The fund is financed by payments made by companies using the Green Premium system.
In December last year, the government made its first investment in a corporate RE100 support project by investing in the Hasami onshore wind PPA project (17.6MW). This year, new investments will begin in two projects: the Alpha solar PPA (18.8MW) and the Green Solar Ilha solar PPA (24MW).
An official from the Ministry of Trade, Industry and Energy stated, "We plan to continue close communication with domestic and international RE100 participating companies and provide support to expand renewable energy supply and improve the RE100 purchasing system."
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