Four trial runs yield zero contracts
The government's power purchase agreement (PPA) brokerage market, introduced to connect renewable energy developers with companies, failed to conclude a single contract across four trial runs, according to data obtained by News1 through the office of Rep. Park Su-min of the People Power Party, a member of the National Assembly's Environment & Labor Committee. The Korea Energy Agency (KEA), which operates the market, has no separate results report, evaluation materials, or analysis documents on the causes of the failed deals across the four runs.
According to KEA data, the "fixed-price competitive bidding-linked PPA brokerage market" conducted four trial runs in total, two each in solar and wind power, from October 2024 through November 2025.
A PPA is a method in which a renewable energy developer contracts with an electricity user outside the power market and supplies electricity. The government introduced the brokerage market to address the difficulty developers and companies seeking to use renewable energy face in finding trading partners.
However, the trial runs produced no actual contracts. In the first solar trial, two power plants of 3.6 megawatts (MW) capacity participated; in the second, one plant of 0.5 MW. In wind power, two plants of 50 MW and one plant of 72 MW participated in the first and second trials respectively, but none resulted in contracts.
Demand companies participated but did not commit
Demand-side companies were not absent. In the first solar trial, 15 companies expressed intent to participate; in the first wind trial, 6 companies did. In the second solar and wind trials, 10 and 2 companies respectively submitted relevant documents. However, the KEA explained that contracts did not materialize because demand companies did not express actual intent to sign.
Even the second solar trial in 2025, intended to lower the entry threshold for small-scale developers, failed to produce a contract. A solar facility of 496.8 kilowatts (kW) capacity participated on June 24, but no other power plant applied, leaving the combined capacity below the 1 MW threshold. The contract ultimately fell through at the matching stage between the developer and demand company.
The KEA stated that it allowed power facilities of 1 MW or less to enter the brokerage market, but actual PPA contracts required either a single facility or combined capacity exceeding 1 MW. The Korea Power Exchange (KPX) explained that when Direct PPA surplus power is sold to the power market afterward, market participation rules must be followed, requiring facility capacity exceeding 1 MW and power generation monitoring equipment. Small-scale developers can combine multiple facilities to exceed 1 MW.
No analysis despite repeated failures
Despite repeated contract failures, the KEA had no comprehensive results report, evaluation materials, or separate documents analyzing the causes of the failed deals across the four trial runs. The KEA told the lawmaker's office that "the requested materials do not exist," adding that "we have announced the results of the trial operation through external briefing materials."
The permanent PPA brokerage platform launched after the earlier brokerage market also produced no final contracts as of September 7. Twenty listings, 11 supply and 9 demand, were posted, and 133 companies registered as members. Of these, 5 began negotiations and 3 concluded memoranda of understanding, the stage before final contract, but zero contracts were finalized.
Rep. Park noted that "since all four trial runs ended in failure, the causes must be properly analyzed and reflected in follow-up measures."
Original Korean article: News1
English brief by Korea Wind Intelligence, koreawindintel.com
