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Summary
ONE-STOP TOTAL PV SOLUTION SYSTEM
Won Kwang S&T's abundant construction technology know-how, which has grown steadily based on trust and honesty, provides a one-stop EPC solution that includes the most efficient and optimized PV system design for the project site, development approval, responsible construction, and maintenance to ensure quality satisfaction after completion. We will do our best to meet the needs and satisfaction of business owners by providing a possible total PV solution system and become a reliable business partner whom they can trust.
What is PV business?
The PV business is a part of the renewable energy business in which individual or corporate operators construct photovoltaic power generation facilities on land, forests, and buildings, and the electricity produced through this is contracted with the Korea Electric Power Corporation (Power Purchase Agreement). Monthly weighted average system marginal price (SMP:System Marginal Price) transaction through a purchase agreement or real-time SMP transaction through the Korea Power Exchange and a new and renewable energy supply certificate (REC: Renewable Energy Cerificate) issued based on accumulated power generation. This is a renewable energy power generation business that generates profits by selling certificates to power generation companies (27 power generation companies) with mandatory supply.
RPS(Renewable Portfolio Standards) policy
- A system that obliges power generation business operators (supply obligors) with power generation facilities of a certain size (500 MW) or more to supply more than a certain percentage of the total power generation using renewable energy
- Supply obligors : total 27 power generation company
Basis for implementation
Mandatory Renewable Energy Supply System (RPS): Implemented on January 1, 2012
- 1.
Article 12-5 - 2.Ministry of Trade, Industry and Energy Notice
- 3.Renewable Energy Center Rules
| Supply obligors (27 power generation companies) |
Korea Electric Power Corporation (KEPCO) power generation subsidiaries (6 companies) Korea Hydro & Nuclear Power, South-East Power, Korea Midland Power, Korea Southern Power, Western Power, East-West Power |
|---|---|
|
Public institutions (2 companies) Korea District Heating Corporation, K-Water |
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Private power generation business operators (19 companies) SK E&S, GS EPS, GS Power, POSCO International, MPC Yulchon Power, Pyeongtaek Energy Service, Daeryun Power, S-Power, Pocheon Power, Dongducheon Dream Power, Paju Energy Service, GS Donghae Power, Pocheon Independent Power Generation, Shinpyeongtaek Power, Narae Energy, Goseong Green Power, Gangneung Eco Power, Yeoju Energy Service, Samcheok Blue Power |
|
| REC sales contract |
|
Annual mandatory photovoltaic power supply ratio
Annex 3 of the Enforcement Decree of the New Energy and Renewable Energy Development, Utilization, Distribution and Promotion Act
| Year | ‘18 | ‘19 | ‘20 | ‘21 | ‘22 | ‘23 | ‘24 | ‘25 | ‘26 | ‘27 | ‘28 | ‘29 | After 30years |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ratio (%) | 5.0 | 6.0 | 7.0 | 9.0 | 12.5 | 13.0 | 13.5 | 14.0 | 15.0 | 17.0 | 19.0 | 22.5 | 25.0 |
※Annually total obligatory supply = total power generation (previous year/excluding renewable energy) *obligatory ratio (%)
- Contract period: 20 years (in the case of a fixed price contract, the unit price is fixed for 20 years, and the contract can be extended after contract expiration)
- RPS Bidding Schedule: Twice a year in April and October
- In case of failure in fixed price contract bidding, profit generation through spot trading in the Korea Power Exchange REC trading system twice a week
The profits from PV power generation consist of two types: electricity sales revenue (SMP: system marginal price) with KEPCO and REC (supply certificate) sales revenue with the supply obligor.
| SMP |
System Marginal Price : Payment of System Margin Price Contract subject : Korea Electric Power Corporation or Korea Power Exchange |
|---|---|
| REC |
Renewable Energy Certificate : supply certificate Definition : Certificate for confirmation that energy has been supplied using renewable energy Issuer : Korea Energy Management Corporation New and Renewable Energy Center Contract target : 27 supply obligations |
| REC weighted value |
REC(supply certificate) weighted value according to installed capacity (0.7~1.5) |
Profit formula: SMP + (REC x weighted value) = Unit price per bill
PV power supply certificate weighted value
| Item | Supply certificate weighted value | Target energy and standards | |
|---|---|---|---|
| Installation type | Detailed standards | ||
| PV energy | 1.2 | When installing on a general site | Below 100kW |
| 1.0 | From 100kW | ||
| 0.8 | Exceeding 3,000kW | ||
| 0.5 | When installing in a forest | - | |
| 1.5 | When using existing facilities such as buildings | Below 3,000kW | |
| 1.0 | Exceeding 3,000kW | ||
| 1.6 | When installing while floating on the water surface of a reservoir, etc. | Below 100kW | |
| 1.4 | From 100kW | ||
| 1.2 | Exceeding 3,000kW | ||
| 1.0 | When trading electricity through private power generation facilities | - | |
- The weighted values are determined and announced by the Minister of Trade, Industry and Energy, taking into account the impact on the environment, technology development and industrial revitalization, power generation costs, existing potential, and the effect on reducing greenhouse gas emissions.
- Supply certificate weighted values are reexamined every three years (if necessary, the reexamination period can be shortened)
Photovoltaic(PV) project progress procedure
Selection of business site
Check the area where permits are available
Check KEPCO-connected capacity
Check installation capacity
Power generation business permit
Ministry of Trade, Industry and Energy: 3,000kW or more
Provincial/City/County Office: Less than 3,000kW
Takes about 60days after receiving application
(※Depends on local governments)
Business registration
Registration at competent tax office
Takes 7days after registration
Permission for development activities
Application for permission from city/county/district office
More than 15 days after receipt
(Environmental impact assessment according to land area, etc.
additional license required)
Apply for power supply contract
On-site confirmation
Determination of entry point (confirmation before power generation permit)
Notify construction cost to KEPCO
Make payment for incoming construction costs
Construction plan report
Check with the relevant local government
Select an electrical supervisor(Design supervision fee will occur)
PV installation
Civil engineering work
Structure construction
Electrical work
KEPCO Inlet Construction
Inspection before use
Korea Electrical Safety Corporation reception and inspection
Power supply contract
KEPCO SMP monthly sales
Mandatory power generation company REC purchase contract (if conditions apply)
Report on commencement of commercial operation
Report relevant local government documents
Completion of development activities
Check Installation
Application for installation confirmation for RPS (submission of development completion documents)
Korea Energy Agency installation confirmation
Sign up for Korea Power Exchange membership
Commencement of commercial operation
Meter sealing and solar power generation commencement
Sales of REC
Power Exchange spot trading (Each Tuesday, Thursday)
RPS fixed price contract competitive bidding(April, October)
Issuing REC
Issuing Renewable Energy Center Public Certificate (REC)
Won Kwang S&T handles all procedures from A to Z of photovoltaic business in one stop.
- Depending on the business site, a preliminary environmental impact assessment may be conducted in accordance with local government ordinances.