Targeting Special Law Enactment Within the Year
Considering Drastic Incentives Such as Electricity Rate Cuts and Zero Regulation
The government has officially begun the development of "RE100 Industrial Complexes" based on renewable energy.
On the morning of July 16, the Ministry of Trade, Industry and Energy held the first meeting of the "RE100 Industrial Complex Task Force" at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. This task force is an inter-ministerial consultative body established to discuss the specific direction for promoting RE100 industrial complexes and enacting a special law. The meeting was attended by 12 director-level officials from relevant ministries, including First Vice Minister Moon Sinhak of the Ministry of Trade, Industry and Energy, as well as the Office for Government Policy Coordination, Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, Ministry of Environment, Ministry of Agriculture, Food and Rural Affairs, Ministry of Oceans and Fisheries, Ministry of Education, and Ministry of Culture, Sports and Tourism.
The RE100 industrial complexes envisioned by the government are special industrial zones equipped with infrastructure to supply 100% of industrial electricity from renewable energy sources. As major domestic export companies are accelerating their implementation of RE100 (a declaration by companies to use 100% renewable energy) in response to global supply chain regulations, the government has determined that it is urgent to create locations that can directly support these efforts. In fact, major Korean conglomerates such as Samsung Electronics and SK Hynix have already joined RE100.
The Ministry of Trade, Industry and Energy plans to use this task force to prepare a concrete plan for the establishment of RE100 industrial complexes, as well as a draft of the relevant special law, within this year. The Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport will jointly lead the initiative, holding regular meetings every two weeks to focus on practical issues such as legal and institutional reforms, corporate incentives, and residential conditions.
The task force has decided to focus its efforts on three main tasks. The first is "expanding renewable energy infrastructure." The key is to expand transmission and distribution networks and improve the electricity trading structure so that renewable energy resources such as solar and wind power, which are distributed throughout the regions, can be adequately accommodated.
The second is "corporate attraction incentives." The government is considering supplying industrial electricity required for RE100 implementation on a long-term and low-cost basis. Other measures being discussed include drastic electricity rate discounts, a zero-regulation environment, and tax benefits. The third is "residential conditions." There is a consensus on the need to expand living infrastructure such as education, culture, and healthcare to attract top talent.
Regarding site selection, regions rich in renewable energy resources, such as the southwestern area of Jeonnam and Ulsan, are emerging as priority candidates. In particular, after President Lee Jaemyung emphasized a "local power consumption model that can reduce transmission and distribution network construction costs" at a senior aides meeting on July 10, the government has been paying attention to the local production and local consumption structure in these regions.
The Ministry of Trade, Industry and Energy plans to announce a draft of the "Special Act on the Establishment and Support of RE100 Industrial Complexes and Energy New Towns" (tentative name) in the second half of this year. This law will comprehensively regulate matters such as site designation, energy supply structures, and special provisions. It is also expected to include measures for easing existing regulations applied to industrial complexes, improving energy trading and contract structures, and promoting direct renewable energy transactions (PPA).
At the meeting, Vice Minister Moon stated, "RE100 is becoming an essential factor for export companies, and we should see it as an opportunity rather than a regulation to promote balanced regional development and energy transition using renewable energy. Through close cooperation with relevant ministries, we will identify all available policy measures and develop strategies for the swift establishment of RE100 industrial complexes."
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