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Purpose
This system mandates power producers that have power generating facilities with installed capacity over 500MW to produce a minimum proportion of their power using new and renewable energy sources.
Legal basis
- The Act on the Promotion of the Deployment, Use and Diffusion of New and Renewable Energy (Law no. 12296)
- The Guidelines on the Management and Operation of Obligatory Renewable Energy Supply Program (MOITE Notification no.2014-164)
- The Regulation on the Issuance of Renewable Energy Certificate and the Operation of the Certificate Market (NREC Notification 2014-22)
Details of the program
Power producers subject to the system
Korea Hydro & Nuclear Power, Korea South East Power, Korea Midland Power, Korea Western Power, Korea South Power, Korea East-West Power, Korea District Heating Corporation, K water, SK E&&S, GS EPS, GS Power, Posco Energy, MPC Yulchon Power, Pyungtaek Energy Service
Annual RPS Target
Obligatory renewable service supply ratio (Additional table no.3 of Enforcement Ordinance of the Act on the Promotion of the Deployment, Use and Diffusion of New and Renewable Energy )
| Year | ‘12 | ‘13 | ‘14 | ‘15 | ‘16 | ‘17 | ‘18 | ‘19 | ‘20 | ‘21 | ‘22~ |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Ratio(%) | 2.0 | 2.5 | 3.0 | 3.2 | 4.0 | 5.0 | 6.0 | 7.0 | 8.0 | 9.0 | 10 |
※ Total power generation (new and renewable energy generation excluded) X obligatory supply ratio
Solar PV power obligation supply
Obligatory solar PV supply (Additional table no.4 of Enforcement Ordinance of the Act on the Promotion of the Deployment, Use and Diffusion of New and Renewable Energy )
| Year | ‘12 | ‘13 | ‘24 | ‘15~ |
|---|---|---|---|---|
| Obligatory supply (GWh) | 276 | 723 | 1,353 | 1,971 |
※ Solar PV supply obligation is to be applied until December 31, 2015 (The article 18, clause 3 of the New and Renewable Energy Act)
※ A plan to combine Solar PV and non-solar PV energy obligations from 2016 is under review
Penalties for non-compliance
Penalties of maxim of 150% of trading prices of renewable energy supply certificate are imposed for non-compliance. The amount of penalties varies depending on causes and frequency of the non-compliance.
Differing the supply of obligatory new and renewable energy supply
The obligatory supply can be deferred for maximum 3 years. The deferred amount is maximum 20% of the obligatory supply.
Renewable Energy Certificate (REC)
- REC certifies that power generators produced and supplied power using new and renewable energy facilities
- Power generators can meet their obligatory new and renewable energy supply target by purchasing REC
- REC is issued based on the weighted new and renewable energy supply (MWh)
REC weighting scheme
| category | REC weighting | Energy source and criteria | |
|---|---|---|---|
| Facility type | Criteria | ||
| Solar PV | 1.2 | Facility installed
on general site |
Less than 100kW |
| 1.0 | More than 100kW | ||
| 0.7 | More than 3,000kW | ||
| 1.5 | Facility installed
on existing buildings |
Less than 3,000kW | |
| 1.0 | More than 3,000kW | ||
| 1.5 | Facilities floating on the water | ||
| Others | 0.25 | IGCCC, Byproduct gas | |
| 0.5 | Waste, landfill gas | ||
| 1.0 | Hydro, onshore wind, bioenergy, RDF, waste gasification,
tidal power (with embankment) |
||
| 1.5 | Wood biomass, offshore wind (grid connection less than 5km) | ||
| 2.0 | Fuel cell, tidal power | ||
| 2.0 | Offshore wind (grid connection
longer than 5km), geothermal, tidal power (no embankment) |
Fixed | |
| 1.0~2.5 | Variable | ||
| 5.5 | ESS (connected to wind power) | ‘15 | |
| 5.0 | ‘16 | ||
| 4.5 | ‘17 | ||
