The government is set to implement strict oversight on power generation projects that have received permits but are not actively being developed. The capacity recovered through inspections will be prioritized for allocation to other operators to enhance the efficiency of power grid usage.
The Ministry of Climate, Energy and Environment and Korea Electric Power Corporation announced on July 19 that a revised regulation on the use of electric facilities for transmission and distribution will take effect on July 20. This revision aims to maximize the efficient use of the national resource of the power grid by prioritizing allocation to operators capable of actual project implementation, especially in regions like Honam where the power system is lacking.
Previously, project progress was assessed two years after the power grid usage contract was signed. This left operators who did not sign contracts for extended periods or did not apply at all in a management blind spot.
The new regulation will eliminate this oversight. From now on, operators who do not apply for power grid usage within one year of obtaining a power generation permit or who do not sign a contract within one year of applying will be subject to inspection. The ministry plans to sequentially review the progress of approximately 30GW of power generation projects that have been in the management blind spot by September of this year.
A tailored management approach will also be introduced, particularly for offshore wind projects that require a longer timeline. A new intermediate inspection stage will be established, requiring environmental impact assessments to be completed five years before the start of power grid usage and securing fixed-price contract bids three years prior.
However, operators will be given ample opportunity to explain any unavoidable circumstances. Those who receive a notice of contract termination for power grid usage can file an objection within 30 days of the notification.
Through this inspection, any power grid capacity deemed unfeasible for actual project implementation will be promptly reallocated to operators capable of moving forward. The ministry aims to improve the efficiency of power grid usage through this initiative.
Lee Jae-sik, the director of power grid policy at the ministry, stated, "As the power grid is a limited national resource, it must be systematically managed to prevent long-term occupation without actual project implementation. We expect that the capacity recovered through inspections will significantly enhance the efficiency of power grid usage for actual operators."
The Ministry of Climate, Energy and Environment and Korea Electric Power Corporation announced on July 19 that a revised regulation on the use of electric facilities for transmission and distribution will take effect on July 20. This revision aims to maximize the efficient use of the national resource of the power grid by prioritizing allocation to operators capable of actual project implementation, especially in regions like Honam where the power system is lacking.
Previously, project progress was assessed two years after the power grid usage contract was signed. This left operators who did not sign contracts for extended periods or did not apply at all in a management blind spot.
The new regulation will eliminate this oversight. From now on, operators who do not apply for power grid usage within one year of obtaining a power generation permit or who do not sign a contract within one year of applying will be subject to inspection. The ministry plans to sequentially review the progress of approximately 30GW of power generation projects that have been in the management blind spot by September of this year.
A tailored management approach will also be introduced, particularly for offshore wind projects that require a longer timeline. A new intermediate inspection stage will be established, requiring environmental impact assessments to be completed five years before the start of power grid usage and securing fixed-price contract bids three years prior.
However, operators will be given ample opportunity to explain any unavoidable circumstances. Those who receive a notice of contract termination for power grid usage can file an objection within 30 days of the notification.
Through this inspection, any power grid capacity deemed unfeasible for actual project implementation will be promptly reallocated to operators capable of moving forward. The ministry aims to improve the efficiency of power grid usage through this initiative.
Lee Jae-sik, the director of power grid policy at the ministry, stated, "As the power grid is a limited national resource, it must be systematically managed to prevent long-term occupation without actual project implementation. We expect that the capacity recovered through inspections will significantly enhance the efficiency of power grid usage for actual operators."
* This article has been translated by AI.
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