Photovoltaic Power Applications in SouthKorea For Fin Solar

Photovoltaic Power Applications in South-Korea For Fin. Solar Project Aalto University School of Business 9. 2. 2015 Kim Yukyeong

Retail electricity prices in Korea For Household For Industry & Commercial Market share k. Wh monthly Fixed rate € + Electricity rate €-ct/k. Wh < 100 0, 33 € 5 €-ct/k. Wh 201 -300 1, 28 € 15 €-ct/k. Wh 401 -500 5, 84 € 33 €-ct/k. Wh > 500 10, 35 € 57 €-ct/k. Wh Depends on the season (summer is higher), usage voltage and capacity price; basic rate per k. W (alle 7 €/k. W) + electricity rate (alle 10 €-ct/k. Wh) KEPCO control/manage the whole electric market in Korea Electric Power Corporation, KEPCO

Total capacity of PV & Generation of electricity from PV Total electricity generation capacity v 2013 unit PV MW % Generated electricity during the v 2013 GWh % 1 555 1, 8 1 605 0, 29 Renewables *9 973 *11, 5 21 438 3, 86 Total 86 969 100 555 672 100 Source: Korea Energy Management Corporation Total energy consumption(demand) v 2013: 474 849 GWh *annual report IEA-PVPS-2013 -Korea

Power stations from renewable energy in Korea 1. 2015 Number of power stations Capacity (MW) 9 273 1 894, 2 Wind 85 641, 6 Hydro 153 1 767, 0 Others 130 2 095, 9 9 641 6 398, 7 PV Total capacity from all technology ** 94 102 **others; tidal, bio, fuel cell … KEMCO (Korea Energy Management Corporation), update 30. 1. 2015 https: //www. renewableenergy. or. kr/spc/stats/powerstation/select. Power. Station. List. do

Annually installed PV capacity 2000 1800 accumulated capacity 1600 annually installed capacity 1400 MW 1200 1000 800 600 400 2007 2008 2009 2010 FIT - v 2011 2012 2013 2014 RPS v 2012 – Approx. 1, 2 GW annual report IEA-PVPS-2013 -Korea + KEMCO

Feed-in Tariffs program (v 2002 -2011) Sell electricity directly to KEPCO with fixed price (€-ct/k. Wh) for 15(20)years Year Period Under 30 k. W year Rooftop €-ct/k. Wh Under 1 MW Over 3 MW Ground mounted €-ct/k. Wh 2006 15 57 ? ? 2008 15 57 ? ? 2010 15 48 41 33 20 44 37 30 15 43 35 28 20 39 32 25 - ? 24 2011 **2015 ** Under RPS program; sell electricity (SMP) directly to KEPCO + sell REC (renewable energy certificate) to the power generation company (REC price 7 €-ct/k. Wh 9. 2014)

National programs • Renewable Portfolio Standards (v 2012 -2022) Mandated requirement that the electricity utility business source a portion of their electricity supplies from renewable energies (company over 500 MW) • Home Subsidy Program (One Million Green Homes, v 2004 -2020 ) This program was merged the existing 100 000 rooftop PV system installation program (gov supports some of installation cost, household < 3 k. W) • Building Subsidy program (v 2012 Government supports up to 50% of installation cost for PV systems with a capacity below 50 k. W (benefited 20 MW) • Regional Deployment Subsidy program The government supports 50% of installation cost for PV systems owned and operated by local authorities (benefited 71 MW) • NRE Mandatory Use for Public Buildings The new buildings of public institutions, the floor area over 1 000 m 2 are obliged to use more than 10% of their total expected energy by the newly installed renewable energy resource systems (up to 30% v 2020)

Renewable Portfolio Standards (RPS) • Electrical power generation companies (yli 500 MW capacity, total 14 utilities v 2014) should supply some portion of electricity from renewables. • Need to meet targets for a proportion 2% (v 2012) up to 10% (v 2022). • How? Build their own plant or buy REC(renewable energy certificate). • Penalty payments charged for any shortfalls. Required rate, Obligatory supply rate by suppliers vuonna 2012 2013 2014 2015 2016 2017 2018 2020 2022 % 2, 0 2, 5 3, 0 3, 5 4, 0 5, 0 6, 0 8, 0 10, 0 GWh 6 420 9 210 11 579 * GWh from PV 276 723 1 353 ? 1 971 *requirement from Photovoltaic power (until 2015). -

Obligators under RPS program v 2014 Companies yli 5 MW capacity (NRE plants excluded) 6 major companies (KEPCO) yli 5 GW capacity Main power Total capacity (MW) *Capacity from renewable (MW) Korea Hydro & Nuclear Power Nuclear and hydropower 26 138 130 Korea South-East Power Thermal 11 640 73 Korea Midland Power Thermal 8 434 20 Korea Western Power Thermal 8 909 135 Korea Southern Power Thermal 9 217 47 Korea East-West Power Thermal 9 139 64 8 others (public + private) over 5 MW capacity Korea district heat corporation, Korea Water Resources corporation Posco energy, SK E&S(14, 5 MW), GS EPS, GS power, MPC Yulchon , Pyeongtaek energy service ! Data from companies website !

Links International Energy Agency (IEA) Photovoltaic Power Systems Programme (PVPS) http: //www. iea-pvps. org/index. php? id=146 National survey reports New and Renewable Energy Center, Korea Energy Management Corporation http: //www. energy. or. kr/knrec/14/KNREC 140300. asp Renewable Energy Annual Report (only in korean) Renewable Energy Korea https: //www. renewableenergy. or. kr/spc/stats/supply/select. Supply. do (korean) http: //www. renewableenergy-korea. com/ resources/select. Resources. List. do? bbs. Id=BBSMSTR_00005761 Korea Energy Management Corporation http: //www. kemco. or. kr/ Korea Electric Power Corporation http: //cyber. kepco. kr/kepco/EN/main. do