Status of Renewable Energy Subsidies

Status of Renewable Energy Subsidies

1. Contents of an article

 

□ A number of companies that obtained government subsidies after installing renewable energy facilities have been found to have violated relevant laws and regulations in the course of their participation in the project.

 

ᄋ Confirmation of illegal subcontracting without directly constructing facilities

 

□ As a result of the public corporation's audit conducted in February, a total of 143 cases of illegal activities were found, such as lending names or subcontracting without directly constructing facilities.

2. The Ministry of Industry's position on this report

 

□ The Korea Energy Agency conducted a full audit of companies participating in the government's renewable energy supply support project between 19.7 and February.

 

ᄋ The audit was conducted preemptively to check in advance whether there are any similar cases in the government supply support project as some illegal or nonconformities were found in the audit results of the local government's solar energy supply project by the Board of Audit and Inspection.

 

ᄋ For seven months, a total of 40,164 cases of support were investigated in 16~18 and 143 cases (0.3% of total violations) were found to have been violated by 8 companies, and most of the projects were legally carried out in accordance with the relevant regulations.

 

* Most of the violators are small and medium-sized enterprises and explain that the violation occurred because they did not recognize the provisions of subcontracting under the Electricity Construction Business Act and the Framework Act on the Construction Industry.

 

□ In order to ensure transparency in government supply projects, companies that violate the corporation's guidelines are also taking measures to restrict participation and to warn them.

 

ᄋ 32 companies that did not submit documents proving proper performance of the project, and 62 companies that violated the guidelines of the industrial complex by participating in on-site inspections, shall be restricted from participation, caution, and warning measures shall be implemented.

 

□ It has been confirmed that the entire project was carried out in compliance with the relevant laws and regulations, and that the entire project was conducted in a preemptive manner to ensure stable operation and transparency of government supply projects.

 

ᄋ Restrictions on participation and police investigation are in progress for companies violating regulations, and plans to implement the project more transparently and strictly by strengthening education for participating companies in the future.

 

※ Inquiry: Yoon Sung-hyuk, Manager of Renewable Energy Industry (044-203-5370) / Secretary Kim Sung-man (5375)

2020.05.18 MOTIE Press Release