'Energy Bills' Pass the National Assembly
Power Grid Expansion Act and Special Act on Offshore Wind Power Approved
The two “Energy Bills”?the Special Act on Offshore Wind Power and the Power Grid Expansion Act?proposed by Representative Kim Won-i of the Democratic Party of Korea (Mokpo, Jeonnam), each passed the National Assembly plenary session as committee alternatives on the 27th. The Special Act on Offshore Wind Power is a bill designed to support Representative Kim's 22nd general election pledge to make Mokpo a “city centered on offshore wind power.”
With the passage of the Power Grid Expansion Act, the government will now be able to support the expansion of transmission lines and accelerate power production. Currently, the Honam region is in urgent need of power grid expansion to address shortages and instability, but as Korea Electric Power Corporation (KEPCO) leads related projects, delays have occurred due to local residents' complaints and other issues.
Accordingly, the bill establishes the basis for formulating a basic plan for expanding the national power grid and stipulates that produced electricity should be used first at the production site. This is expected to help address the concentration of power in the Seoul metropolitan area and encourage RE100 companies that require renewable energy to relocate to regional areas. The bill also includes support measures for local residents and communities, such as recognizing the right to request the purchase of land under transmission lines, providing financial support to local governments for overhead transmission routes, and supporting participation in renewable energy generation projects.
The Special Act on Offshore Wind Power enables the government to take the lead in identifying suitable sites for offshore wind power generation and to support the entire process by handling various consultations and permits in an integrated manner for development zones that secure local acceptance and environmental soundness. Currently, offshore wind power development in Korea is delayed by the fact that permitting authority is dispersed across 10 government ministries, resulting in project timelines of at least 6-7 years, and sometimes over 10 years, from planning to completion.
The act introduces national-level procedures for designating preliminary and development zones for offshore wind projects, and streamlines various administrative procedures and permits, which is expected to serve as a catalyst for the stalled expansion of offshore wind power. The act also includes provisions for creating offshore wind power specialized complexes under the Special Act on Materials, Parts, and Equipment, strengthening the public nature of energy through participation of KEPCO subsidiaries in offshore wind projects, exemption from preliminary feasibility studies, and the introduction of “wind pension” payments.
On the 28th, Representative Kim stated, “I pledged to enact the Special Act on Offshore Wind Power in the last general election to make Mokpo a city centered on offshore wind power, and I am pleased to have fulfilled my promise to the citizens. I expect that the offshore wind power industry, a future growth engine, will take off in Jeonnam, which has the greatest offshore wind potential in Korea, and that attracting RE100 companies in need of renewable energy and creating new jobs will become more active.”
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