Only 4% of South Korean companies have joined RE100, a percentage significantly lower than in other East Asian countries. South Korea's limited renewable energy supply, monopolized electricity market, and perverse pricing regime make it challenging for local companies to procure green electricity. This article analyzes four corporate green power procurement options and explains South Korea's unique REC mechanism and Green Premium plan, helping companies avoid greenwashing risks and providing in-depth analysis and recommendations.
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Wind turbines in Taegisan, South Korea. (Photo: iStock)
25%, 13%, 8%, and 30% - these are the respective shares of RE100 companies that purchase 100% RE in Japan, Singapore, Taiwan, and China. In comparison, the number for South Korea is merely 4%, partly due to the limited supply of renewable energy (see Figure 1).
Yet 7 of the 10 largest new RE100 members last year are headquartered in South Korea, with one with an annual electricity consumption upward to 28 TWh. These statistics paint a picture of a challenging market landscape for corporate green power procurement. The South Korean government has been called out on its less-than-ambitious renewable target and renewable energy development planning policies. At the same time, the lack of renewable power supply is a byproduct of the country’s power market structure. This article aims to discuss the pricing