The government is launching a pilot program for a brokerage platform that connects renewable energy producers with companies seeking power purchase agreements (PPAs). This initiative aims to promote renewable energy transactions and support companies in fulfilling their RE100 commitments while ensuring stable power sales for producers.
On July 15, the Ministry of Climate Energy and Environment announced the start of the PPA brokerage platform pilot project at the L Tower in Seocho-gu, Seoul. The platform will allow renewable energy producers and electricity-using companies to register their desired contract volumes online and negotiate with potential partners. The government plans to conduct mock transactions by the end of this month, with a full service launch expected in early August.
Finding suitable partners has been a significant barrier to PPA activation, as companies have struggled to identify appropriate producers, while producers have faced challenges in securing demand from companies.
A PPA is a contract in which renewable energy producers supply electricity directly to companies without going through the power market. An expansion of PPAs is expected to support companies in meeting their RE100 commitments, provide renewable energy producers with a stable revenue base, and alleviate the burden of renewable portfolio standard (RPS) settlements.
The number of direct PPA contracts has been steadily increasing, rising from 13 contracts in 2023 to 29 in 2024, and 79 in 2025. In just the first five months of this year, 118 contracts have already been signed.
The pilot program includes participation from 43 companies and associations, including renewable energy producers, renewable electricity suppliers, and RE100 demand companies. Participants will register their electricity demand and supply volumes on the platform, and once connections are made, they will negotiate contracts confidentially.
The government has also established incentives to encourage platform usage. Small-scale producers who sign contracts through the platform will receive support for meter installation costs, and RE100 demand companies will have their network usage fee support extended for up to four years. Additionally, the support ratio for guarantee insurance premiums for rooftop solar producers will be increased to a maximum of 50%.
Shim Jin-soo, Director of Renewable Energy Policy at the Ministry, stated, "A survey of participating companies revealed that both demand and supply volumes are around 1 GW, indicating strong industry interest. We will actively incorporate feedback from the field to develop a platform that effectively promotes PPA activation."
* This article has been translated by AI.
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