Electricity Utility Act
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. Korea Electric Power Corporation (KEPCO) is responsible for purchasing electricity from renewables. The government compensates for the difference between nuclear and renewable energy and fossil fuel generation prices. The Act requires the Ministry of Knowledge Economy (MKE) to prepare and announce the Basic Plan of Long-term Electricity Supply and Demand (BPE) on a biennial basis. The BPE stipulates electricity policy directions on supply and demand, long-term outlook, construction plans, Demand Side Management, etc. The 4th Basic Plan of Long-Term Electricity Supply and Demand (2008-2022) was announced in 2008.
The Act was amended in June 2020, for effective entry into force on October 1st, 2020. These amendments aim at easing the administrative process for small-scale solar projects, take into account neighbours' opinions for large scale renewables projects and change the ownership rules.