RPS system improvement in Korea

RPS system improvement in Korea

Solar power company calls for improvement of RPS system.

 

"We are not here to raise the price of REC (Renewable Energy Supply Certificate) unconditionally. I came to reclaim the least amount of rights and interests."

 

The National Solar Power Association (hereinafter referred to as Jeon Tae-hyeop), which consists of solar power operators and solar power companies nationwide, held a press conference at the Cheong Wa Dae fountain square on the 25th and submitted a petition to Cheong Wa Dae.

 

Jeon Tae-hyeop said on the 10th that the meeting with the Ministry of Trade, Industry and Energy's renewable energy policy team and the Korea Energy Agency was encouraging, but there was no real result afterwards, adding that the press conference was held after consultations with the board of directors.

 

Despite the 30% growth in the domestic solar energy market in 2019, Jeon Tae-hyeop expressed concern that the renewable energy industry will collapse if the RPS system is not improved, saying that solar power operators, construction companies, licensing and operation management companies, excluding public and large companies, are having more difficult days than ever due to problems under the RPS (Revitalization of new and renewable energy supply).

 Jeon Tae-hyeop has come up with fundamental measures for the price fall of △REC

- Shared growth with solar energy operators

-RE100 (Renewable Energy 100%) Prepare REC Direct Purchase Act for companies

- The upper and lower 10% of the standard price is the standard culture.

-REC 3-year validity period and power generator supply obligation 20% of 3-year grace period will be abolished.

- Equal basic unit price by energy support

- Transferring the power exchange to the Korea Exchange in kind

- Aborting issuance of biomass mixed REC

-Increases the supply of renewable energy by 1.5 to 2% every year

- It also urged the government to resolve the imbalance between supply and demand of REC with the electricity industry fund.

 

Jeon Tae-hyeop claimed that solar power operators are having difficulty recovering their principal investments at REC prices, which plunged more than 75 percent in three years. According to Jeon Tae-hyeop, it currently takes 14 years for the company to recoup its principal investment with the proceeds (SMP+REC Hong Ki-woong, chairman of Jeon Tae-hyeop, said, "Even if the principal is only 10 years old, it did not come here," and added, "It takes 14 to 15 years to collect the principal." Jeon Tae-hyeop said, "Most solar energy companies are on the verge of bankruptcy in a market where predictability is not premised, but the Ministry of Industry has failed to come up with a suitable alternative."

 

In response, Jeon Tae-hyeop pointed out, "The Ministry of Industry, which has neglected and condoned the imbalance between supply and demand from 2017 to the present, is largely responsible." Jeon Tae-hyeop said, "From 2017 to 2019, REC supply exceeded demand by 12.13 million RECs over three years, which led to widespread damage to REC holders and solar power operators," and added, "It will be reasonable to use the term 'free market economic system' only when the supply and demand balance is balanced after the government resolves the excess supply."

 

Jeon Tae-hyeop pointed out that the main reason for the fall in REC prices is the reckless expansion of coal-biomass mixed facilities by power generators. Jeon Tae-hyeop said, "Biomass mix is an REC issue that is not recognized by the International Energy Agency (IEA)," and claimed, "We need to remove coal-bio mix or adjust the existing weight, introduce an REC sunset system, and dualize solar REC and non-sunlight REC in the power exchange."

 

In addition, it said that the scope of the Korean FIT (Feed in Tariff of Korea) should be allowed to be less than 500 kilowatts (kilowatt) for general businesses by the time the grid parity is reached, and that the public announcement capacity of competitive bidding for RPS fixed price contracts should be expanded to 1GW (gigawatt) by the first half of this year. In addition, the government also called for a 20 percent grace period for mandatory supply and the abolition of the three-year REC expiration system.

 

It also pointed out that REC prices for renewable energy, which currently have differences, should be applied equally. Currently, the solar weight is 0.7-1.5, the unused biomass novel ratio is 1.5, the fuel cell is 2.0 and the wind power is 2.0-3.5, with the lowest solar weight.

 

It also stressed ways for companies participating in RE100 to purchase REC directly Jeon Tae-hyeop said, "It is imperative for solar power operators to purchase REC directly from companies participating in RE100," and suggested, "The Ministry of Industry and Energy and the Korea Energy Agency should communicate and discuss this through public hearings."

 

Jeon Tae-hyeop also pointed out the realization of electricity bills. Jeon Tae-hyeop said, "As the renewable energy generation ratio has increased, it is common sense that electricity bills are raised," and stressed, "We should acknowledge that the cost of energy conversion will inevitably be borne by the people, who are consumers, and promote it to inform the public and to be embraced."