* S.Korea plans to generate 11 pct of electricity with green
energy by 2025
* S.Korea's energy mix plan to be environmentally friendly
By Jane Chung
SEOUL, Nov 30 South Korea plans to provide new
incentives for renewable producers and consumers as its seeks to
double power from green sources to 11 percent of the country's
electricity supply by 2025 from 4.5 percent last year.
Seoul will implement a competitive market auction system for
power producers as early as the first quarter of 2017, shifting
away from the current feed-in-tariff system, the country's
energy ministry said in a statement on Wednesday.
The new system means utilities can buy electricity from
renewable power producers via tenders and fixed-price deals for
up to 20 years - helping green energy producers ensure stable
The move comes after Asia's fourth-largest economy said in
July it would pump 42 trillion won ($35.85 billion) into meeting
its pledge at the Paris Climate summit last year to cut
greenhouse gas emissions by 37 percent by 2030.
"The penetration rate of renewable energy sources is
expected to grow up to 11 percent by 2025, and we can meet this
goal 10 years earlier than we have aimed," Energy Minister Joo
Hyung-hwan said at a meeting with power generators and
Joo said Korea's upcoming power supply plan, due to be
released next year, will be more environmentally friendly in
line with the country's new renewable plans.
At present, utilities can purchase electricity from
renewable producers at prices set by the government via feed-in
tariffs (FIT). That has allowed producers to secure sales of
renewable energy at fixed prices, but has not stoked lower
prices through competition.
"We are planning to set a long-term goal to generate 30
percent of our power with renewable energy sources by 2030," Lee
Jong-sik, executive vice president of Korea Southern Power Co
Ltd (KOSPO), told Reuters.
In addition to the competitive auction system, the ministry
will expand subsidies to cover up to 50 percent of the cost of
installing solar power systems in homes and schools.
With the new plans, the ministry expects green energy
sources to supply 11 percent of the country's total electricity
by 2025. The aim is to increase installed capacity of renewable
energy power to 45.5 gigawatts (GW), from 13.7 GW in 2015.
Korea currently generates nearly 40 percent of the country's
electricity from coal, followed by nuclear power at 30 percent
with the rest coming from oil, gas and renewable energy sources.
($1 = 1,171.3900 won)
(Reporting by Jane Chung; Editing by Kenneth Maxwell and