On July 2, 2021, Korea Electric Power Corporation (“KEPCO”) and the New & Renewable Energy Center of the Korea Energy Agency (the “KEA”) announced the opening of the second round of green pricing auctions, which is a cornerstone of the K-RE 100 programs. Key details on the second round of auctions are as follows:
- Auction volume: 12,319GWh (no cap to individual bid volume)
- Minimum bid price: KRW 10/kWh
- Auction period: July 7, 2021 to July 20, 2021
- Announcement of auction results: July 21, 2021.
Successful bidders are automatically deemed to enter into a green pricing contract with KEPCO on the eighth business day from the date of announcement, unless the bidder explicitly indicates otherwise through KEPCO’s online system (http://en-ter.co.kr) prior to such date. Proceeds from green pricing premiums are earmarked to be used towards the KEA’s renewable energy investment projects.
Please note one key development for the second round of auctions, which is the expanded eligibility to participate. While participation in the first round was limited to general and industrial electricity users that contract directly with KEPCO, participation in the second round does not require users to have a pre-existing contractual relationship with KEPCO. This is a welcome development that opens up the green pricing auction to many businesses, including those that operate out of leased business complexes.
We at Kim & Chang have a strong team of expert advisors on K-RE 100 programs. Please do not hesitate to reach out to our RE 100 team should you require any assistance or support in participating in the K-RE 100 programs.
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