Original Korean article: Today Energy
The Korea Wind Energy Industry Association (Association Chair Kim Gang-hak) has welcomed the passage through the National Assembly of a bill amending the Renewable Energy Portfolio Standard (RPS) to transition it into a competitive bidding-based contract market, while calling for stable system design.
The association assessed that over the past 15 years, the RPS has served as a foundation for expanding renewable energy supply and growth in the wind power industry. It stated that this overhaul is also a change that can heighten revenue predictability for power generators centered on long-term fixed-price contracts and drive expanded investment.
However, the association emphasized that complementary measures are necessary to protect the investment and business viability of existing operators. It noted that since a considerable number of wind power projects have been pursued over long periods based on the existing RPS and renewable energy certificate (REC) weighting system, if economic standards change sharply during the system transition, existing projects could also be affected.
The association stated that the characteristics of wind power generation—which has large differences in project costs depending on water depth, grid connection distance, community participation, and site conditions—must be reflected in the pricing system of the new contract market.
To this end, it proposed: clarification of the scope of existing operators and transitional measures; establishment of a premium (α) system considering project economics; construction of a pricing system reflecting project characteristics; and adjustment of support systems and presentation of a medium- to long-term roadmap.
The association emphasized that reasonably inheriting the investment stability and economic viability functions of the existing system into the new market system is the core of the system transition.
Association Chair Kim Gang-hak stated that government and industry must communicate sufficiently to establish a system that allows both existing projects and new investment to continue stably, and that the association will actively cooperate.
