The revised renewable energy promotion act retires the renewable portfolio standard that has shaped the market since 2012.
Developers will bid beneath a government ceiling price in auctions run separately for each energy source, and winners will sign long-term fixed-price supply contracts with Korea Electric Power Corporation.
Bids will also be scored on their contribution to domestic industry, supply chains and energy security.
Renewable energy certificates, the tradable credits generators now buy to meet their quotas, will no longer be issued for new facilities. Existing operators will keep receiving them for up to 20 years, and the certificate spot market will trade until Dec. 31, 2029.
Renewables supplied about 10 percent of Korea's electricity in 2024, among the lowest shares in the OECD, according to data compiled by Ember.
The government's first renewable energy master plan, unveiled in May, targets 100 gigawatts of installed capacity by 2030 and a 30 percent share of generation by 2035.
The ministry will hold a public hearing in Seoul on Sept. 30, finish drafting subordinate rules this year and announce the first solar and wind auctions next year.
AJP Takeaways
- South Korea's Ministry of Climate, Energy and Environment promulgated on Sept. 15, 2026 a revised renewable energy promotion act that abolishes the 2012 renewable portfolio standard and replaces it with government-run competitive auctions from Jan. 1, 2027.
- Winning bidders will sign long-term fixed-price power purchase contracts with Korea Electric Power Corporation, while renewable energy certificates stop being issued for new facilities and the certificate spot market closes on Dec. 31, 2029.
- The overhaul supports the government's first renewable energy master plan, released in May 2026, which targets 100 gigawatts of installed renewable capacity by 2030 and a 30 percent share of power generation by 2035, up from about 10 percent in 2024.
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