What is the Renewable Portfolio Standard (RPS)?
The Renewable Portfolio Standard (RPS) is a policy that mandates power generators with a certain capacity (500MW or more) to supply a specified proportion of their total electricity generation (the obligated supply amount) from renewable energy sources.
Annual Obligated Supply Amounts under RPS
| Year | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
|---|---|---|---|---|---|---|
| Percentage (%) | 2.0 | 2.5 | 3.0 | 3.0 | 3.5 | 4.0 |
| Obligated Supply (GWh, thousand RECs) |
6,420 | 9,210 | 11,577 | 12,375 | 15,081 | 17,039 |
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Percentage(%) | 5.0 | 6.5 | 7.0 | 9.0 | 12.5 | 13.0 | 13.5 | 14.0 | 15.0 | |||||
| Obligated Supply (GWh, thousand RECs) |
21,999 | 26,966 | 31,401 | 35,588 | 39,206 | 47,439 | 58,673 | 78,622 | 62,626 | 85,172 | 63,819 | 86,156 | - | - |
PV Power Generator Revenue = SMP + REC
Annual Revenue = Annual Generation Amount X (SMP + REC x Weighted Factor)
Weighted Factors for Renewable Energy Sources
| Category | Weighted Factor | Target Energy and Criteria | |
|---|---|---|---|
| Installation Type | Detailed Criteria | ||
| Detailed Criteria | 1.2 | General Sites | Under 100kW |
| 1.0 | From 100kW | ||
| 0.7 | Exceeding 3,000kW | ||
| 1.5 | Existing Facilities (Buildings, etc.) | Under 3,000kW | |
| 1.0 | Exceeding 3,000kW | ||
| 1.5 | Floor Installations on Water Surfaces | ||
| 1.0 | Self-generation Equipment | ||
| 5.0 | ESS Equipment (Linked with PV Facilities) | 2016, 2017, 2018 (Until June 30th) | |
| Other Renewable Energy | 0.25 | IGCC, by-product gas | |
| 0.5 | Waste, landfill gas | ||
| 1.0 | Hydro, onshore wind, bioenergy, RDF full combustion generation, waste gasification generation, tidal (with embankment), power trading through self-generation equipment | ||
| 1.5 | Wood biomass full combustion generation, offshore wind (connected distance within 5km), water thermal energy | ||
| 2.0 | Fuel cell, tidal currents | ||
| 2.0 | Offshore wind (connected distance over 5km), geothermal, tidal (with embankment) | Fixed type | |
| 1.0 ~ 2.5 | Variable Type | ||
| 5.0 | ESS Equipment (Linked with Wind Facilities) | 2015 | |
| 5.0 | 2016 | ||
| 4.5 | 2017, 2018 (until June 3rd) | ||
Source: Korea Energy Agency, New and Renewable Energy Center
RPS System Participation Procedure for Power Generators
1Power Generation Business Permit
For installations up to 3MW: Permit granted by the local government
For installations exceeding 3MW: Permit granted by the Electric Power Regulatory Commission
Completion of Power Plant Construction
Based on the Electric Utility Act
Pre-use Inspection
Conducted by the Korea Electrical Safety Corporation
Power Supply Contract
Contracts with the Korea Power Exchange (KPX); for installations up to 1MW, contracts can be made with KEPCO
Commencement of Power Generation Business
Report the commencement to the relevant local government
Application for Facility Confirmation
Within one month from the date of pre-use inspection, report to the New and Renewable Energy Center
Issuance of Supply Certificates and Trading
Issuance: By the New and Renewable Energy Center
Trading: Through the Korea Power Exchange (KPX)
SDN Co., Ltd. PV Generation Business Process
01
Feasibility Study
- Preliminary Site Survey
- Data Based Objective Analysis
- Line Review
02
Permits and Approvals
- Electricity Business Permit
- Development Activity Permit
-> Review of latest related laws and ordinances
03
EPC (Engineering, Procurement, and Construction)
- Optimal Layout of Modules
- Selection of Self-produced and Reliable Equipment
- Dedicated Construction Team Operation
04
O&M (Operation and Maintenance)
- Operation of Dedicated O&M Company
- Branch Offices Operation (Seoul, Daejeon, Gwangju, Changwon, Gangjin)
- Specialized Engineer
Previous RPS Construction Examples
WCP 3MW Rooftop PV Plant
HKC 6MW Rooftop PV Plant
