Mobile QR Code QR CODE : The Transactions of the Korean Institute of Electrical Engineers
Title A Proposal for Design of Green Tariff Programme for Corporate Renewables Procurement in Korea
Authors 정구형(Koo-Hyung Chung) ; 허돈(Don Hur)
DOI https://doi.org/10.5370/KIEE.2020.69.9.1329
Page pp.1329-1337
ISSN 1975-8359
Keywords Green Tariffs; Renewables; Renewable Energy Certificate (REC); Renewable Energy 100% (RE 100)
Abstract As global interests in climate change are growing, international credit rating agencies and investors allow for individual enterprises’ action plans for that issue as a key indicator for their corporate competitiveness. As such, multinational companies promote their efforts into the energy transition by unveiling their objectives and attainment of voluntary renewable energy 100% (RE 100). The establishment of their goals for RE 100 is likely to obligate their business partners to encourage wider use of renewables while the corporate sourcing conditions for renewables and institutional strategies in Korea are still nascent. Accordingly, the arrangement of both effective measures to facilitate corporate renewable energy procurement and reasonable standards to validate the renewable electricity consumption is now required to keep domestic industries immensely competitive, simply not to fulfill the national target of green gas emissions. Though multiple procurement pathways vary across countries based on how they are implemented and detailed market rules and regulations, utility green tariffs, which have emerged recently in U.S. markets, are highly regarded as economical and stable options to meet renewable energy demand from corporations. Typically, in utility green tariffs, the utility procures renewable energy on behalf of the electricity customers, and they pay a special utility green tariff rate for the renewable energy service. Compared with other potential opportunities, utility green tariffs have an overwhelming advantage of reduced financial burdens on renewable energy purchases by realizing the renewable energy offerings with overall cost savings through enabling renewable generators to seek assurances that their investments in renewables should be returned on a long-term basis.
Finally, this paper purports to come up with a viable and vibrant green tariff mechanism in Korean electric power transaction frameworks and, at the same time, the overarching insights into various requirements considered to trigger this scheme in an amicable manner.