The I-TRACK Foundation Board has approved South Korea for I-REC for Electricity (I-REC(E)) issuance. Approval came after the submission of a country report detailing various aspects of the electricity generation market, including a review of domestic policies, and confirmation of interest in introducing I-REC(E) to support further renewable energy development in the country, specifically for asset classes that do not interact with the domestic renewable portfolio standard. Use the button on the left to download the country report.
The Republic of Korea
The Republic of Korea (South Korea) is an East Asian nation on the southern half of the Korean Peninsula. South Korea is a top ten greenhouse gas emitter among the signatories of the UN Framework Convention on Climate and retains high energy-intensive industries and is dependent on energy imports, with over 90% of energy needs met by imported fossil fuels. However, South Korea’s Renewable Energy 3020 Plan (RE 3020) seeks to secure 20% of energy from renewables by 2030. The RE 3020 plan indicates that a total of 48.7 GW of renewables should be added in 2017–2030, composed of 30.8 GW solar and 16.5 GW wind.
At the same time, South Korea experiences a high level of corporate demand for renewables, largely tied to voluntary initiatives such as RE100, alongside compliance demand associated with the national Renewable Portfolio Standard (RPS) compliance scheme. Concerning the domestic RPS scheme, it is important to note that South Korea hosts a domestic energy attribute certificate (EAC) system used to demonstrate compliance with the RPS. The national EAC scheme includes domestic issuance rules and a national entity responsible for managing the market and issuing certificates.
The I-TRACK Foundation recognizes the autonomy of the South Korean system and will restrict any engagement in the country to areas that do not in any way compete with the domestic tracking system or create a risk of double counting. In the first instance, I-REC(E) issuance will be restricted to assets that are directly unable to register in the South Korean EAC system, but which do meet I-REC(E) eligibility criteria. Early stages of market growth are, therefore, expected to concentrate around rooftop solar assets, though issuance criteria may be expanded in the future.
High demand, paired with limited supply of EACs in the domestic market, establishes a strong use case for I-REC(E) instruments in South Korea, specifically where new EACs can be issued for assets currently unable to issue in the country. The I-TRACK Foundation, in coordination with domestic actors, believes that the introduction of I-REC(E) into the market will support developers to monetize a wider range of asset classes and ultimately support the country with wider objectives to scale clean electricity generation at minimal costs to the public sector. Accordingly, the I-TRACK Foundation is pleased to welcome South Korea as an I-REC(E) issuing country, and looks forward to deepening partnerships with domestic, regional, and international actors engaged in South Korea’s clean energy ecosystem.