1. Introduction to the businesses
  2. Energy saving in buildings
  3. Countermeasures 
against climate change
  4. Energy saving 
in transportation
  5. New? renewable 
energy
    1. Goal
    2. A Message from the Director
    3. Overview of KEMCO and NREC
    4. Energy Review in Korea
    5. Energy Review in Korea
    6. Current status of NRE RD&D in Korea
    7. Program for promoting NRE deployment
    8. Program for promoting NRE utilization
    9. International Cooperation
  6. Inspection of heat-using machines and equipment
  7. Energy Audit
  8. Energy Service Company (ESCO)
  9. Support in the form of funds and tax incentives
  10. Integrated Energy Supply (IES)
  11. Consultation for Energy Use plan
  12. Efficiency management system
  13. bottom
HOME > INTRODUCTION TO THE BUSINESSES > New · renewable energy > Program for promoting NRE utilization
Program for promoting NRE utilization
Feed-in-tariffs NRE mandatory use for public buildings Certificate of NRE systems Renewable Energy Service Companies Renewable Portfolio Agreement (RPA)
Feed-in-tariffs

The government compensates for differences between the electricity costs of NRE and fossil fuel power generation to promote the production and use of such sources. Such compensation is referred to as feed-in-tariff (FIT). The standard prices for NRE, initially formulated in 2002, have been modified several times.

FITs opened an opportunity window for NRE investment. Conspicuous performances were brought about in the fields such as PV and Wind. Annual total volume of PV dissemination, for example, had been just over 200kW before 2004. However, as the FIT system was announced and recognized by investors, PV installation increased dramatically and reached about 497MW in 2011.

Standard Prices of Power Source

Power Source Capacity for
application
Classification Standard Price (KRW/kWh)d Remarksd
Fixed Price Fluctuating Price
Wind Powerd Over 10kW - 107.29 - Decremental rate : 2%
Hydro power Under 5MW Typical Over 1MW 86.04 SMP+15  
Under 1MW 94.64 SMP+20
Non-typical Over 1MW 66.18 SMP+5  
Under 1MW 72.80 SMP+10
Waste energy
(including RDF)
Under 20MW - - SMP+ 5 Fossil fuel use : Under 30%
Bio energydd LFG Under 50MW Over 20MW 68.07 SMP+ 5
Under 20MW 74.99 SMP+10
Biogas Under 50MWd Over 150kW 72.73 SMP+10
Under 150kW 85.71 SMP+15
Biomass Under 50MW Ligneous bio 68.99 SMP+ 5
Ocean Energy Tidal Power Over 50MW Tidal range is over 8.5m Embankment 62.81 -  
No Embankment 76.63 -  
Tidal range is under 8.5md Embankment 75.59 -  
No Embankment 90.50 -  
Fuel Cellddd Over 200kW Using Biogas 234.53 - Decremental rate : 3%
Using other fuels 282.54 -
  • SMP : System Marginal Price (2008 average : 122.63KRW/kWh).
  • If a government subsidy forms over 30 percent of the total price paid, then the FIT program cannot be accessed.
  • The decremental rates will be applied to wind power from 2009, to fuel cell energy from 2008, starting Oct. 11 every year.