ACEC calls for enhancement of clean energy sourcing mechanisms in South Korea
At the Korea RE-Sourcing Forum 2023, the Asia Clean Energy Coalition (ACEC) called for the enhancement of clean energy sourcing mechanisms in South Korea.
As companies commit to becoming 100% renewable, it is also important that they can access cost-effective renewable energy (RE). However, there are still barriers to procuring cost-effective RE in South Korea due to the limited availability of RE, regulatory complexity and the high costs, Suji Kang, Program Director of ACEC, pointed out during her speech at the Korea RE-Sourcing Forum.
At this event, hosted by the Corporate Renewable Sourcing Foundation (CREF), 150 delegates from government, public authorities, supply companies, and corporate RE buyers convened to discuss challenges to corporate access to renewable electricity in South Korea.
While the limited RE procurement conditions, to meet the global trend of transitioning to net zero, was flagged as an underlying issue by supply chain companies, more specific barriers were highlighted in the results of a survey conducted with the CREF members in advance of the event. One of the key barriers revealed in the survey was that RE project developers are facing challenges in ensuring residents acceptance because the higher REC weight for civil-society-funded renewable projects is only applied to RPS projects.
To take down these barriers, Suji emphasized that the government needs to take more action to improve the existing procurement mechanisms. The three key priority areas identified by ACEC members with an an appetite for facilitating RE procurement in South Korea include; 1) enhancement of transparency and additionality with the green premium program, 2) streamlining the renewable energy project development and permitting process, 3) managing transmission upgrades to increase renewables on the grid with existing infrastructure.
The event provided an opportunity for ACEC to share its commitment to strategically shift policy in key Asian national and regional markets, creating the enabling conditions for corporate RE procurement while reconfirming where the key challenges exist in the country with the local stakeholders.