Business Areas

Renewable Energy System

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

Head Quarter 1281 Daewangpangyo-ro, Sujeong-gu, Seongnam-si, Gyeonggi-do, Korea TEL+82 31-8016-0599 FAX+82 31-8016-0799

Gwangju Factory & R&D Institute30 Cheomdan Venture-ro 16beon-gil, Buk-gu, Gwangju, Korea TEL+82 62-973-5770 FAX+82 62-973-5771

E-mail Sales sunday@sdn-i.com Technical Support servie@sdn-i.com

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