Feed-in Tariff for renewable energy

The Electricity Business Law mandates both the purchase and the fixed price of electricity generated from renewable sources. Any renewable energy generator that is connected to the grid is eligible to sell electricity to the grid at fixed prices. KEPCO is responsible for purchasing electricity from renewables. The establishment of a differentiated feed-in tariff is one of the governments principal means of promoting new and renewable energy. The government guarantees fixed rates for 15 years generated from renewable sources, Especially, guarantees the rates for 20 years for photovoltaics.Renewable electricity generators bid into the Korea Power Exchange (KPX). The government compensates eligible renewable energy generators for any shortfall between the pool price and the feed-in tariff. In 2002 , the government set an upper limit of support for renewables at 250 MW for wind and 20 MW for solar . The guaranteed feed-in tariff is granted on a first-come, first-served basis up to the limit. The government has paid KRW 11.7 billion in subsidies since the programme began in 2002, up through 2004, to 110 MW of renewable power (40 different power plants). The total power generated by the support system was 664,662 MWh as of the end of April 2005.

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