Renewable energy sources such as solar power and wind power have the potential to complement each other in meeting the energy demands of a country. In South Korea, the Korea Electric Power Corporation (KEPCO) has been purchasing electricity generated through renewable energy. However, it has been revealed that the mandatory supply ratio of renewable energy will increase significantly from 13% this year to 17% by 2027. This means that KEPCO will have to purchase a larger amount of renewable energy power, which is estimated to cost 6.6156 trillion won by 2027.
The Renewable Portfolio Standard (RPS) is a policy that mandates power facility operators to supply a specific portion of their electricity generation from renewable sources. This includes solar power operators. KEPCO, being one of the entities affected by the RPS, must either generate renewable energy directly or purchase a certain amount of electricity generated through renewable sources. The RPS ratio is expected to increase gradually over the years, reaching 17% by 2027.
The cost of purchasing renewable energy power is expected to rise sharply in the coming years. Currently, the combined expenses of RPS and Korea's Emission Trading System (ETS) are estimated to be 3.8501 trillion won this year. However, this amount is projected to increase to 6.6156 trillion won by 2027. These costs are included in the "Climate Environment Fee" in electricity bills, which means that the burden might be transferred to end consumers. The government's current policy direction is to promote nuclear power while adjusting the ratio of renewable energy in the overall energy mix.