Demand for more sustainable business practices is directly catalyzing the prominence of RE100, the voluntary global initiative led by The Climate Group in partnership with CDP where influential global companies commit to rely 100% on electricity generated from renewable sources for their global operations by no later than 2050. RE100 companies not only make a commitment to sustainable growth and reduced greenhouse gas emissions, they also position themselves to benefit from long-term financial savings, stabilized energy bills and positive recognition from increasingly environmentally-conscious investors and consumers.
Companies operating in the Republic of Korea (“Korea”) have historically been unable to participate in the RE100 initiative because all power in Korea’s merchant market system is aggregated on the Korea Power Exchange and then sold to electricity consumers non-discriminately through the Korea Electric Power Corporation (“KEPCO”) without any certificates of origin. But soon Korean companies may be joining the RE100 ranks. The Ministry of Trade, Industry and Energy (the “MOTIE”) is preparing to launch Korea’s first green pricing system (whereby certificates of origin will be issued for renewable energy and certified green energy can be purchased at a premium) and indirect PPAs or green tariffs (which will allow renewable power generators and electricity consumers to enter into long term PPAs with KEPCO acting as intermediary). The Korean government is also considering allowing PPAs directly between renewable power generators and electricity consumers, which are currently not permitted under Korea’s Electric Utility Act.
As Korea’s premier legal services provider with a deep bench of Korean and international attorneys, former MOTIE and other governmental officials and energy and climate experts, Kim & Chang is uniquely placed to advise global companies on RE100-related issues in Korea. We provide the following RE100 advisory services to our clients who hope to access the benefits of RE100 participation in their Korean operations:
- Analysis of Korea’s energy policies, power market and RE100-related legal framework;
- Identification of and introduction to key RE100 stakeholders in Korea;
- Monitoring of RE100-related policy developments and media, public and industrial sentiment;
- Strategic assistance in engaging with RE100 stakeholders to protect your interests; and
- Structuring and advising on renewable energy investments and RE100 participation in Korea.
We encourage you to contact us if Korea’s RE100 developments are an important factor in your business operations. We would be pleased to discuss formulating a bespoke plan of attack to address your specific RE100 needs in Korea.
