South Korea is expected to revise the overall renewable energy project system, including the Small-scale Power Generation Grid Access Guarantee System, which has been blamed for incurring excessive costs to the country’s state utility Korea Electric Power Corp. (KEPCO).

The Ministry of Trade, Industry and Energy on Tuesday discussed the plan and follow-up measures after an audit by the Board of Audit and Inspection.

Under the plan, Korea will phase out the grid access guarantee system for small-scale power generation of under 1 megawatt (MW).

The system ensures grid access for small-scale solar power operators and KEPCO covers the cost of reinforcing public distribution facilities to be borne by power generation operators.

To minimize disadvantages for businesses currently in preparation, the government will provide a grace period of 9 months before eliminating the system.

KEPCO plans to finalize the reform plan through review by its Electricity Regulatory Commission at the end of January 2024 after collecting opinions.

The industry ministry will also take legal action, including reporting and contract termination, against 815 fake farmers who earned profits by falsifying documents while participating in the Korean Feed-in-Tariffs (FIT) program for new and renewable energy.

Under the Korean FIT program, the government buys solar power at a fixed price for 20 years, guaranteeing stable profits.

The ministry has so far reported 20 individuals and two companies for illegal activities and terminated the contracts with 93 individuals.

The industry ministry also plans to revise regulations to prevent facility manipulation and expand the criteria for judging the same business entity to include family members.

By Lee Sae-ha and Yoon Yeon-hae

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]