The proportions of renewable energy and new and renewable energy (NRE) in South Korea’s energy mix are gradually increasing. While the OECD defines “renewable energy” as energy derived from solar, wind, water, biomass, ocean sources and biodegradable waste – sources that are both renewable and environmentally friendly – Korea’s definition of NRE is broader and includes energy sources that may not be classified as renewable according to international standards, such as liquefied/gasified coal and heavy residual oil.

According to the 2026 Korea Energy Agency (KEA) Energy Handbook, the proportion of NRE sources within total domestic power generation in South Korea has been continuously increasing (from 4.99% in 2018 to 10.69% in 2024). Furthermore, according to the 11th Basic Plan for Electricity Supply (2024–38), announced on 21 February 2025 by the Ministry of Climate, Energy and Environment (MCEE), the proportion of power generation by NRE sources is expected to reach 21.7% by 2030 and 33% by 2038. This trend signals the ongoing transition from fossil fuels to NRE sources in South Korea.

Since June 2025, the Lee Jae-myung administration has selected the development of RE100 national industrial complexes as a top national policy priority and established a task force with the aim of enacting the Special Act on the Creation of RE100 Industrial Complexes and Energy New Towns within the year. It is also pursuing the complete phase-out of coal-fired power plants by 2040 and the construction of a “U-shaped Korean Peninsula Energy Highway”.

Currently, solar power accounts for the largest share of NRE power generation in South Korea. According to the KEA’s NRE supply statistics for December 2025, the proportion of each NRE source in 2024 was as follows:

• solar power, 55%;
• biomass, 17.8%;
• fuel cells, 11.1%;
• hydropower, 6.3%;
• wind power, 5.5%;
• integrated gasification combined cycle (IGCC), 3.0%;
• ocean energy, 0.6%; and
• renewable waste, 0.6%.

From 2026, the government plans to commence the development of ultra-large wind turbines of 20 MW or more and their core components, with fabrication and demonstration targeted for completion by 2030. It is also pursuing the establishment of a 100 MW-class ultra-large floating offshore wind test bed.

Since the Lee Jae-myung administration took office, NRE investment sentiment has improved. In MCEE’s first-half 2026 offshore-wind fixed-price auction, nine projects totalling 3,656 MW competed and five totalling 1,786 MW were awarded: 1,094 MW fixed-bottom, 532 MW floating following the unsuccessful 2025 auction and 160 MW public-led. The approximately 2:1 ratio was the first above two since 2022. Direct power purchase agreement (PPA) demand also rose, with 2026 prices of KRW175–180/kWh and preference increasing from 58% in 2025 to 68% in 2026. However, grid shortages, permitting delays and renewable portfolio standard (RPS)-to-contract-market policy uncertainty remain significant burdens.

The principal laws governing the South Korean energy market in general are:

• the Energy Act; and
• the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis (the “Carbon Neutrality Act”).

The licensing and operation of electric utility businesses are governed by:

• the Electric Utility Act;
• the Integrated Energy Supply Act;
• the Electrical Safety Management Act;
• the Electric Power Source Development Promotion Act; and
• the Electrical Technology Management Act.

In addition, there are laws governing the licensing and operation of electric power businesses, such as the Electric Utility Act, the Integrated Energy Supply Act, the Electrical Safety Management Act, the Electric Power Source Development Promotion Act and the Electric Power Technology Management Act, as well as regulations issued by the Ministry of Climate and Energy and Environment (MCEE), including the Detailed Criteria for Licensing Generation Projects, Standards for Electricity Tariff Calculation, Permissible Error for Watt-Hour Meters and Regulations on Power System Operation. There is also a separate law, the Hydrogen Economy Promotion and Hydrogen Safety Management Act, aimed at developing hydrogen as a major energy source.

The Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy (the “NRE Act”) is the principal law regulating NRE, based on which a number of related regulations are promulgated by MCEE to promote the distribution of NRE, namely:

• the Guidelines on the Management and Operation of the Renewable Portfolio Standard and Renewable Fuel Standard (the “RPS Guidelines”);
• the Guidelines on the Subsidy for the Cluster Creation Projects; and
• the Regulations on the Subsidy for New and Renewable Energy Facilities.

In line with the NRE Act, the KEA has established the following:

• the Guidelines on the Subsidy for New and Renewable Energy Facilities; and
• the Rules on the Issuance of Renewable Energy Certificates and Operation of the REC Market.

Furthermore, pursuant to the aforementioned laws, the government has announced “master plans” such as the National Carbon Neutrality and Green Growth Basic Plan, the Basic Energy Plan, the Basic Plan for Electricity Supply and Demand, and the Basic Plan for New and Renewable Energy. These plans clearly set forth the principles for the promotion and expansion of NRE.

The Special Act on the Promotion of Offshore Wind Power Deployment and Industrial Development, promulgated on 25 March 2025 and effective from 26 March 2026, replaces developer-led siting with government-designated preliminary and development zones. Implementation-plan approval constitutes 28 major permits and approvals, including public-waters occupancy and use permission and an electric business licence (EBL).

In May 2026, a bill to amend the NRE Act passed the relevant National Assembly standing committee, signalling the abolishment of the RPS system and the introduction of a government-led renewable energy contract market (auction system). The bill has not yet passed the plenary session and may therefore be amended. The proposed changes include:

• phasing out the RPS system and transitioning to a government-led contract market system from 2027; and
• ending the statutory basis for issuing new RECs on 31 December 2026 and phasing out the renewable energy certificate (REC) spot market, the statutory basis for which is expected to sunset on 31 December 2029.

In addition, an amendment to the Enforcement Decree of the Electric Utility Act dated 29 July 2025 abolished the generation-capacity threshold of more than 1 MW for participation in a direct PPA, enabling small and medium-sized businesses that previously faced space constraints to participate in direct PPAs.

Since 1 October 2025, the primary regulator for NRE activities in South Korea has been the MCEE, which oversees NRE legislation, budget allocation, directives, regulations, guidelines and the licensing of electric businesses (although local governments are in charge of issuing licences for power generation of 3 MW or less). The MCEE assumed the former responsibilities of the Ministry of Trade, Industry and Energy (MOTIE) for electricity, renewable energy, nuclear-power operation and promotion, and the Climate Response and Green Climate Funds. Renamed the Ministry of Trade, Industry and Resources, the former MOTIE retains responsibility for oil, gas, coal and mineral resources and nuclear-power exports.

The Electricity Regulatory Commission (ERC) under the MCEE reviews EBLs, promotes competition, regulates unfair practices, protects consumer rights, regulates abuse of market power in monopoly sectors, and monitors the power market and power system operations.

While the KEA, Korea Power Exchange (KPX) and Korea Electric Power Corporation (KEPCO) are not regulatory authorities, they are parties that a developer must closely co-ordinate with in relation to their electric business operations.

Ruling-party legislators proposed Electric Utility Act amendments to strengthen the ERC’s independence by elevating it to a central administrative agency under the Prime Minister or granting it decision-making authority. Submitted to the National Assembly’s Climate, Energy, Environment and Labor Committee in November 2025, the bills were referred to a subcommittee.

The main regulated activities regarding NRE in South Korea involve the construction and operation of power generation facilities. The applicable regulations vary depending on the scale of the facility and the type of renewable energy.

For power generation businesses with a capacity exceeding 3 MW, the following process applies (and in cases where the generation facility capacity is 3 MW or less, the head of the relevant local government, instead of the MCEE, serves as the licensing authority):

• the applicant must submit an application for an EBL to the MCEE;
• the MCEE receives technical feasibility reviews and grid connection reviews from KPX and KEPCO;
• the ERC conducts a final review; and
• the MCEE grants the EBL.

Additional requirements include:

• for generation facilities with a capacity of 10 MW or more, an environmental impact assessment (EIA) will typically be required; and
• when installing a power plant with a capacity of 10 MW or more, a construction plan must be submitted to the MCEE for approval.

Different types of renewable energy projects may require additional permits depending on the energy source or asset location.

• A solar power facility requires:
1. a permit for development activities under the National Land Planning and Utilisation Act because it is a type of structure; or
2. a permit to divert farmland under the Farmland Act, a permit to divert mountainous districts under the Mountainous Districts Management Act, or permission to occupy and use a road under the Road Act, depending on the location.
• Offshore wind power facilities require:
1. a permit to occupy or use public waters;
2. authorisation of an implementation plan for occupancy or use under the Public Waters Management and Reclamation Act; or
3. additional processes including: (i) a national heritage impact diagnosis under the National Heritage Impact Diagnosis Act; (ii) a marine traffic safety examination under the Maritime Traffic Safety Act; (iii) a review of military operability (including an electromagnetic-wave impact assessment) under the Protection of Military Bases and Installations Act; and (iv) consultation and impact assessment concerning marine use under the Act on Assessment of Impacts on Marine Use, together with marine geophysical surveys.

For offshore wind projects newly commenced after the Special Act on the Promotion of Offshore Wind Power Distribution and Industrial Development took effect on 26 March 2026, designation of a development zone and approval of an implementation plan under that Act are deemed to constitute 28 major permits and approvals, including those described previously. A project that had already obtained an EBL before the Act took effect may continue under the previous regime.

Restrictions on the ownership and transfer of NRE assets in South Korea are primarily governed by MCEE, with oversight from the ERC. The following cases require approval from the MCEE after review by the ERC (except when the licensing authority is a municipality, which does not require ERC review):

• transfer of all or part of an electric business;
• division or merger of a corporation that is an electric business; and
• acquisition of shares with the purpose of substantially controlling the management rights of an electric business (excluding developers with capacity less than 20 MW), which would result in a dominant influence on major management decisions.

When granting such approvals, the MCEE evaluates:

• compliance with the criteria for an EBL;
• absence of significant harm to the public interest, such as disruption to or lowered quality of power supply; and
• commencement of operations during the business preparation period (limited to solar power generation businesses, unless there are justifiable reasons such as difficulties in business operations).

Under Appendix 2 to the Regulations on Foreign Investment, the total capacity of hydro, thermal, solar, wind and other power generation facilities acquired by foreigners from KEPCO or its subsidiaries may not exceed 30% of the total domestic power generation capacity. This restriction applies only to acquisitions from KEPCO or its subsidiaries and does not apply to acquisitions of privately owned projects. In addition, in the case of transmission, distribution and electricity sales businesses, foreign investment is permitted only if the foreign investment ratio is less than 50% and the foreign investor’s holdings of voting shares or similar interests do not exceed those of the largest domestic shareholder.

Furthermore, when foreign capital invests in the domestic renewable energy market, it is required to file a report in accordance with the Foreign Investment Promotion Act or the Foreign Exchange Transactions Act.

Key Features

Electricity production/generation from renewable sources in South Korea has the following key features.

Market structure

Currently, domestic power production is handled by six power generation companies – Korea Hydro & Nuclear Power, Korea South-East Power, Korea Midland Power, Korea Western Power, Korea Southern Power and Korea East-West Power – private power generators and district electricity operators.

In the April 2001 restructuring of the electricity industry, KEPCO’s generation business was separated into one hydro/nuclear company and five thermal-power companies, and KPX was established, creating a competitive generation structure. KEPCO remains the monopoly electricity seller, purchasing power from generators for resale to consumers and operating the transmission and distribution system.

Applicable rules and regulations

These include the following.

• The First Basic Plan for Renewable Energy: the MCEE announced this plan on 19 May 2026 pursuant to the NRE Act, as amended in March 2026. It effectively replaces the Renewable Energy 3020 Roadmap and the Strategy for Expanding the Deployment of Renewable Energy and Strengthening the Supply Chain.
• The RPS: This standard requires power generators with over 500 MW capacity to supply a certain amount from renewable sources. RECs are used to certify compliance with RPS obligations and penalised when a power generator is determined non-compliant.
• The principal operational stages for an NRE generator are: (i) REC trading through long-term purchase agreements or the spot market; (ii) electricity sales through direct or third-party PPAs or the power market; (iii) 20-year fixed-price competitive auctions administered by the KEA; and (iv) the appointment of a safety manager and operations and maintenance (O&M).
• The Electric Utility Act, Electric Power Technology Management Act, Electrical Safety Management Act, NRE Act, Regulations on the Subsidy for New and Renewable Energy Facilities issued by the MCEE, and Guidelines on the Subsidy for New and Renewable Energy Facilities issued by the KEA.
• The First Basic Plan for Renewable Energy aims to achieve cumulative renewable energy deployment of 100 GW by 2030 and a renewable generation share of at least 30% by 2035. It focuses on rapid deployment, including: (i) large flagship zones and four principal types of solar site; (ii) cost reductions by 2035 to KRW80/kWh or less for solar and KRW150/kWh or less for offshore wind; (iii) strengthening domestic industrial competitiveness through annual production capacity of 10 GW for solar modules and 3 GW for wind turbines; (iv) expanding public benefits through sunlight-income villages and Renewable Energy Guarantee of Origin (REGO); and (v) strengthening governance.

Biogas

Market structure

Biogas, produced from organic waste, is a primary renewable gas source in South Korea. More widely used gas types in South Korea are liquefied natural gas (LNG) and liquefied petroleum gas (LPG). In the case of LNG, domestic production is minimal, and the country relies almost entirely on imports (approximately 46.72 million tonnes as of 2025). Korea Gas Corporation imported approximately 34.28 million tonnes (74%), while private companies such as SK E&S and GS Energy imported approximately 12.44 million tonnes (26%) (as of 2025). In contrast, private operators such as SK Gas and E1 accounted for approximately 91.5% of LPG imports in 2025, predominantly from North America, while the remainder was supplied through domestic production, including crude-oil refining.

Korea is actively developing technology to upgrade its biogas capabilities, including purifying biogas generated during the treatment of organic waste such as food waste, sludge (sewage residue) and livestock manure for reuse as fuel.

According to Ministry of Environment statistics, 383 million Nm³ of biogas was produced at 112 facilities in 2023, of which 326 million Nm³ was used, representing a utilisation rate of approximately 85.1%. Uses included self-consumption (56.1%), power generation (22.3%) and city-gas supply (4.5%).

In Korea, IGCC technology, which gasifies coal under high-temperature and high-pressure conditions to produce synthesis gas, is actively utilised. IGCC is classified in Korea as “new energy” because it converts conventional fossil fuel more efficiently, and Korea Western Power engages in related power generation projects.

Meanwhile, in June 2024, the government formulated the Biogas Production and Utilisation Promotion Strategy, aiming to produce up to 500 million Nm³ of biogas annually by 2026. Through this initiative, 5.57 million tonnes of organic waste per year are expected to be treated in an eco-friendly manner, with projected annual benefits including KRW230 billion in fossil fuel substitution and a reduction of 1 million tonnes of greenhouse gas emissions. Key measures include support for integrated biogas facilities, increasing the direct city-gas supply limit from 10,000 to 300,000 Nm³ per month, expanding hydrogen-production facilities using biogas and identifying clean-methanol feedstock models for marine fuel.

Key parties and assets

These include:

• public and private sector entities involved in organic waste management and biogas production; and
• companies developing biogas upgrading technologies to produce RNG.

Applicable rules and regulations

The Act on the Promotion of the Production and Use of Biogas Using Organic Waste Resources (the “Biogas Act”), enacted on 30 December 2022 and effective from 31 December 2023, establishes the legal framework governing obligated public and private producers of biogas, biogas production target rates, and the standards for imposing penalty surcharges.

The public sector has been subject to the Biogas Production Target Scheme from 1 January 2025, and the private sector (for livestock manure generators with more than 25,000 pigs) from 1 January 2026. The public-sector production target commenced at 50% in 2025 and is to increase to 80% by 2045, while the private-sector target commenced at 10% in 2026 and is to increase to 80% by 2050. On 26 January 2026, the MCEE issued the Notice on the 2026 Biogas Production Target Ratio (MCEE Notice No 2026-22).

Market Structure

According to the 2026 KEA Energy Handbook, domestic production in 2024 by principal renewable heat source included 1,617,188 tonnes of oil equivalent (toe) from fuel cells, 129,176 toe from biogas, 191,386 toe from wood chips and 24,533 toe from solar heat. Fuel cells showed particularly marked growth.

There is currently no Renewable Heat Obligation scheme. However, on 28 February 2025, the government finalised the 6th Basic Plan for District Energy Supply (2024–28), which aims for “qualitative growth through conversion to clean heat sources” and includes the introduction of a certification system for heat energy from clean sources (renewable heat certificates; RHCs). The key contents of the plan are as follows:

• a clean-heat roadmap setting out technical and economic transition paths for expanding zero-carbon heat, such as solar, geothermal and hydrothermal heat, and low-carbon heat, with the establishment of a certification framework and standards for the supply of heat from clean sources and the launch of pilot programmes to match demand-side companies (such as ASML) with supply-side companies (such as Korea District Heating Corporation);
• a legal basis for the development of a national heat map (under the Energy Use Rationalization Act), provision for acquiring information on unused heat energy and transfer of the responsible agency (from Korea District Heating Corporation to the KEA);
• preparation of guidelines for heat trading, including cost-based heat pricing and setting out conditions for both long- and short-term heat trading; and
• P2H (power-to-heat) pilot projects and heat-pump incentives to establish a foundation for decarbonising industrial-complex district energy and district heating.

Applicable Rules and Regulations

These are as follows:

• the Carbon Neutrality Act;
• the Energy Act;
• the Energy Use Rationalisation Act;
• the NRE Act;
• the Green Buildings Construction Support Act;
• the Integrated Energy Supply Act;
• the Special Act on Promotion of Distributed Energy;
• Technical Criteria for Integrated Energy Facilities; and
• Inspection Criteria for Heat Supply Facilities.

Market Structure

In May 2024, MOTIE announced pioneering plans to establish the world’s first Clean Hydrogen Power Bidding Market. The Clean Hydrogen Power Bidding Market is a system in which electricity generated using clean hydrogen as a fuel is purchased and supplied. The hydrogen power bidding market is divided into the general hydrogen power market and the clean hydrogen power market, depending on the type of fuel used. Only power generation facilities that use fuel meeting the domestic clean hydrogen certification standard (greenhouse gas emissions of 4 kg CO₂e or less per 1 kg of hydrogen) are eligible to participate in the clean hydrogen power bidding market.

The results of the 2024 competitive bidding for the clean hydrogen power market are as follows: a total offer volume of 6,500 GWh, submitted volume of 6,171.68 GWh (five companies, six projects), and a successful bid (contracted) volume of 750.48 GWh. The 2025 auction was announced for 3,000 GWh but cancelled on the bid deadline and therefore effectively failed. In the second half of 2026, the government plans auctions for 500 GWh of clean-hydrogen generation and 930 GWh of general hydrogen generation. The clean-hydrogen volume is substantially lower than the 6,500 GWh offered in 2024; coal-ammonia co-firing will be excluded in line with the 2040 coal phase-out policy, and evaluation will be reformed to encourage a domestic clean-hydrogen production ecosystem, including water electrolysis.

Key Parties and Assets

As of July 2026, 123 companies are registered as hydrogen-specialised enterprises.

Applicable Rules and Regulations

Within Korea’s definition of NRE, the category of “new energy” includes sources such as energy produced by gasifying or liquefying coal, petroleum or other fossil fuels, which would not be classified as renewable energy under international standards.

The NRE Act

Under the NRE Act, new energy is defined as energy converted from existing fossil fuels or derived from chemical reactions of hydrogen and oxygen. This includes hydrogen energy, fuel cells, energy from liquefied or gasified coal, energy from gasified heavy residual oil (heavy fuel oil; HFO) and other non-conventional energy sources (excluding petroleum, coal, nuclear power and natural gas). Renewable energy, under the NRE Act, refers to energy produced by converting renewable resources such as sunlight, water, geothermal heat, precipitation and biological organisms. This includes solar energy, wind power, hydropower, ocean energy, geothermal energy, bioenergy generated from the conversion of biological resources and waste-to-energy (excluding energy produced from non-renewable waste), as well as other forms of energy that are not derived from petroleum, coal, nuclear or natural gas sources.

The Hydrogen Economy Promotion and Hydrogen Safety Management Act

This Act covers companies involved in hydrogen production, storage, transportation, charging and sales, as well as manufacturers of fuel cell-related products, parts, materials and equipment. It offers “hydrogen-specialised enterprises” certification for companies meeting specific criteria in hydrogen-related business sales or R&D expenditure.

There is a growing trend towards decentralised electricity generation in South Korea.

Rules and regulations for small-scale renewable energy production in South Korea include:

• the Electric Utility Act – this Act governs electrical installation for private use; and
• local government initiatives – provision of subsidies to encourage the adoption of mini solar power generation systems.

Generally, electricity produced from these installations cannot be traded in the power market. Exceptions include:

• solar power facility owners trading surplus electricity after meeting their own needs; and
• owners of non-solar renewable facilities trading less than 30% of their annual total power production.

In July 2025, the Cabinet approved an amendment to the Enforcement Decree of the Electric Utility Act to relax PPA eligibility for renewable energy. The 1-MW generation capacity threshold to directly supply electricity to end users via PPAs has been abolished, allowing smaller renewable facilities to participate directly, including on-site (rooftop or idle land) installations, without routing through transmission and distribution facilities. This expands direct participation in PPAs and reduces space constraints for solar photovoltaic (PV) projects.

Under the MCEE’s May 2026 First Basic Plan, REGOs – unlike RECs limited to commercial facilities – will be issued for privately used solar and tradable for RE100 compliance. A 2026 pilot precedes full 2027 implementation through the KEA’s REMS, requiring low-carbon modules and domestic inverters. Balcony-solar targets are 100,000 households in 2026 and 2 million apartment units by 2035, generating owner income and expanding corporate RE100 procurement.

Market Structure

Generation, transmission and geographical challenges

Six public generators, private generators and district electricity providers produce electricity, which KEPCO purchases through KPX and distributes via overhead and underground grids. As generation is concentrated along the coast while Seoul and Gyeonggi account for 40% of demand, KEPCO operates a high-voltage, high-capacity, multi-loop transmission network.

NRE distribution

Currently, Korea’s NRE generation facilities are geographically concentrated, with 75% of the capacity coming from Jeollanam-do, Jeollabuk-do, Chungcheongnam-do, Gangwon-do, Gyeongsangbuk-do and Jeju.

However, these regions have small industrial complexes, necessitating transmission of the generated energy to areas with high industrial power demand like Gyeonggi-do or Gyeongsangnam-do. Currently, there is a shortage of grid facilities to support this. To this end, the Special Act on Expansion of National Backbone Power Grid Facilities was enacted on 25 March 2025 and took effect on 26 September 2025. The main provisions are as follows:

• the establishment of a National Backbone Power Grid Expansion Committee under the Prime Minister to deliberate and decide major matters, including the basic plan, approval of implementation plans and dispute resolution;
• for development projects with approved implementation plans, deemed approvals under 35 statutes, including the Building Act, Farmland Act and Mountainous Districts Management Act, and a reduction of the environmental-impact-assessment consultation period to 45 days; and
• differentiated compensation and support measures, including increased compensation for negotiated acquisitions, payment by instalments, purchase rights for owners of land intended for overhead transmission lines, support for nearby residents’ participation in renewable projects and financial support for local governments traversed by overhead lines.

Applicable Rules and Regulations

The Electric Utility Act regulates transmission and distribution businesses, the Smart Grid Construction and Utilisation Promotion Act promotes and facilitates smart grid adoption, the Special Act on Expansion of National Backbone Power Grid Facilities addresses grid bottlenecks associated with renewable-energy expansion, and the Special Act on the Promotion of Distributed Energy supports the integration of distributed resources such as energy storage systems (ESS) and virtual power plants (VPPs).

Batteries and Storage Solutions

The Electric Utility Act classifies electricity-storage devices as small-scale resources eligible for power brokerage, permits renewable-electricity storage and sales businesses, and recognises information and communication technology (ICT)-controlled VPPs aggregating NRE and storage as a single plant. Effective 14 June 2024, the Special Act on the Promotion of Distributed Energy systematises small-scale brokerage, VPPs and stored-electricity sales and supports grid integration through specialised distributed-energy zones and grid-impact assessments.

Smart grids, which fuse information technology with power grids to optimise energy use, can reduce reliance on the current ~15% reserve margin, and the need for extra generation, by improving energy efficiency and cutting wasted energy and CO₂ emissions.

The intermittent nature of NRE sources presents unique challenges to power grid stability. When combined with existing grid limitations, this intermittency can lead to grid congestion, potentially resulting in financial losses for NRE developers. To address these challenges, South Korea has implemented a multi-faceted approach.

Legal Framework

The main legal bases for addressing grid congestion and curtailment in South Korea include:

• the Electric Utility Act;
• the Criteria for Maintenance of Credibility of the Electric Power System and Quality of Electricity;
• the Rules on Operating the Electricity Market; and
• the Regulations on the Use of Transmission and Distribution Facilities.

Curtailment System

South Korea has a system of compulsory curtailment. Article 18 of the Electric Utility Act allows the MCEE to order necessary measures, including equipment repair and modification or improvement of operation methods if electricity supply services are not adequately maintained, or if consumers’ interests are harmed. Additionally, Article 17 of the Criteria for Maintenance of Credibility of Electric Power System and Quality of Electricity obliges the KPX and transmission/distribution operators to monitor, predict, evaluate and control the output of NRE developers (who should comply with these curtailment measures when implemented) to maintain grid stability.

Grid Expansion

To address potential congestion, the government announced on 27 May 2025, in the 11th Long-Term Transmission and Substation Facility Plan (2024–2038), that – by 2038 – the total length of transmission lines to be constructed is expected to reach 25,587 C-km, representing an approximately 1.72-fold increase compared to 2023. The total capacity of substation facilities to be constructed by 2038 is projected to be 187,560 MVA, about 1.52 times higher than in 2023.

Dispersion Energy

The Special Act on the Promotion of Distributed Energy, effective from 14 June 2024, aims to enhance grid stability by promoting dispersion energy systems. Key features include:

• mandating a portion of energy consumption in certain areas to be supplied by dispersion energy;
• designation of specialised dispersion energy zones; and
• enabling distributed-energy operators with generation facilities in such zones to supply electricity directly to consumers without using the power market, and, where power is short or surplus due to an incident or other cause, to trade with the power market or an electricity seller.

The ESS market is expected to grow as a solution for storing renewable energy. However, due to fire incidents caused by batteries occurring since late 2017, ensuring safety through technological development is crucial for wider adoption.

Market Structure

Biogas is produced from organic waste resources and upgraded for injection into urban gas pipelines. It is used for urban gas and compressed natural gas vehicles.

Under the Urban Gas Business Act, biogas manufacturers may supply self-produced city gas through pipelines only to gas wholesalers and general wholesalers, which must provide access within available capacity; no blending mandate applies. The Biogas Act establishes MCEE annual targets for mandatory public and private producers from 1 January 2025 and 1 January 2026, respectively, shortfall surcharges and local-government authority to recommend use by city-gas and power businesses and support transportation and transfer costs.

Key Parties and Assets Involved

Biogas producers include waste treatment facilities and sewage plants.

Applicable Rules and Regulations

These include the High-Pressure Gas Safety Control Act and the Urban Gas Business Act.

Market Structure

The transportation and storage of heat produced from renewable energy is organised and regulated through a district energy system, in which heat is centrally produced for an entire region and supplied collectively through a pipeline network rather than on a building-by-building basis.

Meanwhile, the development of smart heat grids that incorporate ICT is currently at the demonstration stage, going beyond the conventional centralised heat grid. Through these systems, heat producers and users can exchange information in real time to optimise energy efficiency. Representative examples follow.

Magok smart heat grid project

This project has been implemented by Seoul Energy Corporation in Seoul’s Magok district since 2018 as part of the government’s Smart ZEC (Smart Zero Energy City) development (R&D) project. It is a multi-stage, fourth-generation district-heating model using recovered district-heating water and renewable heat sources such as solar heat and waste heat from fuel cells. It features a “smart heat grid” integrating artificial intelligence and the internet of things (IoT) with the distribution network for real-time monitoring of heating supply and consumption, thereby facilitating information exchange between heat producers and users.

To meet rapidly increasing heat demand in Magok, Seoul Energy Corporation is also pursuing Phase 2 of the Southwest Integrated Energy Facility, with 285 MW of electricity capacity and 258 Gcal/h of heat capacity, targeted for completion in 2031.

Busan Eco Delta City

This project was designated as a “national smart city pilot complex” under the Act on the Promotion of Smart City Development and Industry. Residential occupancy was completed in March 2022, and it is currently in the demonstration phase. The entire complex is equipped with building-integrated solar panels and receives thermal energy through a hybrid system of hydrothermal and geothermal energy. A platform for integrated management of distributed energy in Eco Delta City and nearby industrial complexes is also being developed.

Applicable Rules and Regulations

These include the Integrated Energy Supply Act and the Public Notice on Heat Pipe Safety Inspection.

Market Structure

The hydrogen sector is being built through a government-led public-private partnership that includes public enterprises and large private firms. Since 1 July 2020, the Hydrogen Economy Committee has served as the central policymaking body. The committee aims to foster 500 specialised hydrogen companies by 2030 to strengthen the ecosystem’s competitiveness.

Korea’s hydrogen transportation and storage technology is less advanced and at a lower level of commercialisation compared to those of major countries, making the development of core technologies and competitiveness in this area an urgent priority.

In 2024, the Hydrogen Economy Committee designated Korea’s first hydrogen-specialised complexes – Donghae/Samcheok for liquefied-hydrogen logistics and Pohang for power-generation fuel cells – with KRW500 billion planned for hydrogen clusters. The hydrogen-city programme has expanded to 12 areas, including Pyeongtaek and Namyangju. Since August 2023, Jeju’s Haengwon-ri demonstration has produced up to 55 kg/hour of wind-powered green hydrogen, supplying nine buses through Hamdeok station.

Key Parties and Assets

These include:

• Jeju Haengwon-ri Green Hydrogen Demonstration Complex (see the following);
• wind power plants for electricity generation;
• hydrogen production facilities;
• storage tanks; and
• hydrogen refuelling stations (eg, Hamdok-ri charging station).

Applicable Rules and Regulations

These include:

• The Act on Promoting the Hydrogen Economy and Ensuring Hydrogen Safety, along with its Enforcement Decree and Enforcement Rules; and
• The Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy, the Petroleum and Alternative Fuel Business Act and the Electric Utility Act.

The Power Market

In Korea, developers, district electricity businesses and large-scale consumers (direct buyers) participate in the power market to determine the price and volume of electricity. The KPX operates the power market by overseeing bidding, settlement, measurement, market supervision, disclosure of information and dispute resolution in accordance with the Rules on the Operation of the Power Market.

Wholesale

The wholesale power market was established in Korea in April 2001 pursuant to the Basic Plan for Reorganisation of the Power Industry of 1999. At that time, six developers were split off from KEPCO – Korea Electric Power Corporation (KE), KHNP, Korea Midland Power Co, Ltd (KOMIPO), Korea Southern Power Co, Ltd (KOSPO), Korea Western Power Co, Ltd (KWP) and Korea East-West Power Co, Ltd (EWP) – to introduce competition to the wholesale market. KEPCO is still managing the sale of electricity.

Market price

Korea’s power market operates as a day-ahead market. One day before a transaction, KPX forecasts demand, solicits bids to supply the required volume and establishes a generation plan to meet that demand. Prices are determined by the cost of supplying electricity from operating plants, ordered from cheapest to most expensive; the marginal (most expensive) plant sets the system marginal price (SMP), which becomes the market price.

Retail price

On the other hand, the price of electricity used in households is the retail price, which is fixed by KEPCO after it buys electricity from a number of developers at fluctuating prices.

In the “day-ahead market”, it is difficult to precisely incorporate the volatility of generation with NRE into the market price. To address this, a pilot project introducing renewable-energy bidding, a real-time market and an ancillary-services market has operated in Jeju since June 2024 and is intended to be expanded nationwide after stabilisation. The real-time market is divided into the day-ahead market and the real-time market. In the day-ahead market, contracted quantities are settled at day-ahead prices, while real-time deviations are settled at 15-minute real-time prices, improving real-time balancing and forecast accuracy.

The small-scale power brokerage market, first opened in November 2014 as the first such market in Asia, has grown steadily and had approximately 4.5 GW of participating resources as of 2024.

Concerning biogas, the total usage volume was 326 million cubic metres as of 2023, including “own use” (56.1%), “power generation” (22.3%) and ”urban gas supply” (4.5%) categories, according to the Ministry of Environment.

Under the Biogas Act, local governments may recommend that urban gas businesses use biogas in order to promote its use. The Biogas Production Target Scheme applies to public mandatory producers from 1 January 2025 and private mandatory producers from 1 January 2026. Public producers have a 50% target for 2025, increasing to 80% by 2045, and private producers have a 10% target for 2026, increasing to 80% by 2050. Failure to meet a target may result in a surcharge.

In addition, in June 2024, the Ministry of Environment reported its Biogas Production and Utilisation Promotion Strategy, which aims to convert organic waste into biogas in a more carbon-neutral and value-added manner, and to establish infrastructure and improve systems for the efficient use of the biogas produced. Through this strategy, the government expects to produce up to 500 million Nm³ of biogas annually by 2026, enabling the eco-friendly treatment of 5.57 million tonnes of organic waste per year.

As there is no separate, independent market exclusively for renewable heat, it is instead integrated into existing district heating and industrial complex energy supply networks. Accordingly, a business entity that is designated as an integrated energy business, pursuant to the Integrated Energy Supply Act, may supply heat and electricity to users.

An integrated energy business refers to the business of supplying (selling) energy (heat, or heat and electricity) generated from integrated energy facilities to users within residential/commercial areas or industrial complexes rather than within individual buildings.

Under the Integrated Energy Supply Act, a “heat producer” is defined as a person who produces or generates heat, and a “business entity” is defined as a person who engages in the supply of integrated energy. Since integrated energy businesses require large-scale investment in pipeline networks, operators are granted regional monopolies over specific supply areas to prevent redundant investments in facilities and to ensure the security of energy supply.

A heat producer cannot supply heat directly to users. In other words, a heat producer must supply heat to business entities by entering into a supply agreement, and is prohibited from refusing to supply such heat, without just cause, upon execution of the supply agreement.

Business entities are also prohibited from refusing to supply integrated energy to users within the permitted service area without just cause, and they must report the rules on the supply to the MCEE – including the amount of money to be collected from users and available discounts, as well as any amendments thereto. A person wishing to operate an integrated energy business must obtain the MCEE’s approval for each supply area.

In addition to operating its own combined heat and power plants, Korea District Heating Corporation continues to expand transactions in unused heat, including surplus fuel-cell heat, power-generation waste heat and incineration heat. Unused heat supplied approximately 13% of district-heating volume in 2023 and reduced emissions by approximately 480,000 tCO₂. Recent initiatives include agreements to use industrial waste heat from Samsung Electronics semiconductor facilities and, in 2024, data-centre waste heat. Korea District Heating Corporation aims to increase the unused-heat share to 20% by 2030.

Hydrogen supply is broadly divided into “mobility use” and “power generation use”. For mobility use, producers transport hydrogen by tube trailer or tanker truck to hydrogen fuelling stations, where end consumers purchase it. For power generation use, producers supply hydrogen to power plants via pipeline or ship, and power generation companies use it as fuel to produce electricity, which is then sold on the power market.

Since 2024, the Clean Hydrogen Power Standard (CHPS) has established a hydrogen-power market based on auctions and long-term contracts. Hydrogen meeting life cycle-emission criteria receives graded clean-hydrogen certification, enabling generators to obtain contracts of up to 15 years and difference payments. The world’s first CHPS competitive market opened in May 2024; Korea Southern Power became its first successful bidder in December 2024, with generation scheduled for 2028.

The biofuel market has been operated stably through the Renewable Fuel Standard (RFS), which was implemented on 31 July 2015. Under this system, oil refiners are required to blend a certain minimum percentage of biodiesel into diesel fuel, thereby establishing a stable transaction structure based on individual supply contracts between biodiesel producers and refiners. The mandatory blend is 4% for 2024–26, rising to 4.5% for 2027–29 and 5.0% from 2030. Separately, the government’s 2022 plan for expanding environmentally friendly biofuels seeks to raise the biodiesel blend target to 8% by 2030.

Also, electricity generated from hydrogen, waste or other sources is supplied as explained in 5.1 Electricity, and heat generated from hydrogen, waste or other sources is supplied to ultimate users as explained in 5.3 Heat.

Under the current RPS, generators with at least 500 MW, including Korea Water Resources Corporation and Korea District Heating Corporation, must supply NRE power or purchase RECs, which developers sell through KPX or approximately 20-year fixed-price agreements. A May 2026 NRE Act amendment bill would replace the RPS with a government-led contract market in 2027, end new REC issuance after 31 December 2026 and convert RECs into non-tradable “generation information certificates” for uses including RE100 verification.

Meanwhile, direct PPAs among generators, suppliers and users and third-party PPAs through KEPCO have expanded for corporate RE100 procurement, and the former 1 MW direct-PPA threshold was abolished in 2025.

Among onshore renewable energy projects in Korea, wind power projects are relatively slow (with respect to supply) and small in scale due to limited location and civil complaints, while solar power projects comprise a significant portion of the aggregate generation capacity (accounting for 29.13% of NRE as of February 2025). A summary of the general stages of onshore renewable energy project development in Korea follows.

However, the MCEE’s Onshore Wind Power Promotion Strategy of 3 December 2025 sets deployment targets of 6 GW by 2030 and 12 GW by 2035 and proposes simplified permitting, statutory setback rules and expanded resident benefit-sharing, supporting future onshore-wind growth.

Development Stages

These are as follows.

• Business entity and site:
1. incorporation or acquisition of a business entity to engage in NRE development;
2. site selection after the investigation of energy generated from sunlight (for solar power projects) or measurement of wind resources (for wind power projects, which may also require a temporary use permit pursuant to the Mountainous Districts Management Act or the Farmland Act if the measuring device is installed on a field or a farm) – under the Onshore Wind Power Promotion Strategy, the MCEE is pursuing replacement of wind-measurement data formerly required for an EBL with one year of historical wind data supplied by the Korea Meteorological Administration, which is expected to simplify the process; and
3. procurement of the project site through land purchase, auction or lease.
• EBL:
1. relevant laws include the Electric Utility Act and the Public Notice on the Detailed Criteria for the Electric Business Licence, together with criteria for electricity costs, the margin of error permitted for electric meters and management of the power system;
2. for facilities with a capacity of 3 MW or less, the mayor or provincial governor is the licensing authority, whereas for those exceeding 3 MW, the MCEE is the licensing authority (in the latter case, subject to prior review by the ERC);
3. the ERC reviews the licensing criteria, including business feasibility (such as the applicant’s financial capacity, technical competency and ability to execute the project), after which the MCEE grants approval; and
4. resident receptiveness (consent) needs to be secured. For solar, wind and fuel-cell generation, Article 7(5)(v) of the Electric Utility Act requires a resident-opinion process. In the case of resident participatory projects where the residents will make a certain investment in, and share profits from, the NRE project, additional RECs may be awarded and distributed to residents, and a “wind-income village” model is also being pursued.
• Transaction documentation:
1. performance under the EPC agreement and construction documents; and
2. terms of use of electric transmission and distribution facilities for grid connection (KEPCO).
• Development permit:
1. relevant laws include the National Land Planning and Utilisation Act and other ordinances or guidelines issued by individual municipalities;
2. the municipality will review the adequacy of the site, infrastructure plan, surrounding environment and protection of the landscape before making the final decision;
3. whether an EIA is required to obtain the development permit must be determined in advance; and
4. it is also necessary to confirm whether a military operational review by the Ministry of National Defense is required. The Onshore Wind Power Promotion Strategy proposes incorporating military-operability assessment into environmental siting consultation for onshore wind, which should facilitate earlier identification of risk.
• Approval of a construction plan (by the MCEE for projects of 10 MW or more) or notification (to the MCEE or the mayor/provincial governor for projects less than 10 MW).
• Construction of the power plant.
• Pre-use inspection (Korea Electrical Safety Corporation, KESCO): inspection of the installation, construction of the electrical facilities and confirmation of their compliance with the construction plan and the technical criteria for electrical facilities are required.
• Trial run and completion of construction.
• Commercial operation.

Operational Stages

These are as follows.

• Confirmation of facilities subject to the issuance of a REC (KEA), and application for the issuance and sale of a REC:
1. REC purchase agreement – the NRE developer (the “seller”) and mandatory supplier (the “buyer”) engage in transactions on the KPX trading system; and
2. REC spot market – the buyer and seller may participate in transactions in the KPX spot market by bilateral bidding. The proposed NRE Act amendment of 8 January 2026 would end new REC issuance on 31 December 2026 and the spot market’s statutory basis on 31 December 2029, while preserving issuance and trading for eligible projects certified before the deadline and certain MCEE-recognised pre-existing EBL holders.
• Power purchase:
1. direct PPA – direct sale and purchase of electricity among the NRE developer, supplier and user;
2. third-party PPA – sale and purchase between the NRE developer and user, mediated by KEPCO; and
3. power market – power supply agreement entered into with the KPX.
• Auction for fixed price agreement: the KEA solicits bidding for purchase agreements at a REC price fixed for 20 years.
• Under the proposed amendment, the MCEE could replace the existing fixed-price auction with a renewable-facility contract market offering long-term fixed-price contracts from 1 January 2027; new generators would rely primarily on that market or PPAs.
• Facility maintenance:
1. appointment of safety manager pursuant to the Electric Utility Act; and
2. O&M.

Wind energy is the second largest source of renewable power generation in Korea after solar energy. As of September 2025, 109 offshore wind projects with an aggregate capacity of approximately 34.8 GW had obtained EBLs, but the total capacity of commercial offshore wind farms actually in operation was only approximately 320.5 MW.

The principal reasons for the delay in development include delays in permitting, residents’ complaints and difficulty in procuring grid connection. However, the 11th Basic Plan for Electricity Supply suggested a projected capacity of 74.8 GW for solar power and 40.7 GW for wind power by 2038, compared with 21.1 GW for solar power and 1.9 GW for wind power in 2022. In addition, the Special Act on the Promotion of Offshore Wind Power Deployment and Industrial Development, passed in February 2025 and effective from 26 March 2026, introduces planned siting and integrated permitting and is expected to accelerate deployment.

A summary of the general stages of offshore renewable energy projects in Korea follows.

Development Stages

These are as follows.

• Business entity and site:
1. incorporation or acquisition of a business entity to engage in NRE development; and
2. measurement of wind resources (along with the occupancy and use permit described in the following to install the measuring device), followed by site selection. Following the offshore-wind Special Act, developer-led individual siting, local-government-led integrated complexes and central-government-led planned siting coexist. For planned sites, an Offshore Wind Power Committee under the Prime Minister supports the full process, including permits and approvals, for development zones with established community acceptance through a one-stop system.
• EBL (see 6.1 Onshore Project Development).
• Transaction documentation:
1. wind turbine supply agreement (WTSA);
2. performance under the EPC agreement and related construction documents; and
3. terms of use of electric transmission and distribution facilities for grid connection (KEPCO).
• Occupancy and use permit for public waters for the construction of the power plant:
1. relevant laws include the Public Waters Management and Reclamation Act and other ordinances or guidelines issued by individual municipalities;
2. permit authority – the Ministry of Oceans and Fisheries, relevant cities and municipalities; and
3. for more detailed requirements, see 2.3 Regulated Activities.
• Approval of the plan for occupancy and use.
• Construction of the power plant.
• Pre-use inspection (KESCO): see 6.1 Onshore Project Development.
• Trial run and completion of construction.
• Commercial operation.

Operational Stages

These are as follows.

• Confirmation of facilities subject to the issuance of a REC (KEA), and application for the issuance and sale of a REC: see 6.1 Onshore Project Development.
• Power purchase: see 6.1 Onshore Project Development.
• Auction for fixed price agreement: see 6.1 Onshore Project Development.
• The proposed NRE Act amendment would end new REC issuance on 31 December 2026, subject to transitional protection for eligible pre-existing projects, and sunset the statutory basis for the spot market on 31 December 2029. From 1 January 2027, the existing fixed-price auction is expected to be replaced by a government-led renewable facility contract market, leaving new projects to rely principally on that market or PPAs.
• Facility maintenance:
1. appointment of a safety manager pursuant to the Electric Utility Act;
2. a long-term service agreement (LTSA) for the main equipment; and
3. O&M.

The key characteristic of project financing for NRE assets is that the repayment term for the principal and interest of the loans is long term (more than ten years) due to the relatively low profitability of NRE compared with other assets. Another key feature that distinguishes this from other project financing structures is that, as previously discussed, if the revenue structure is linked to government schemes such as the RPS, feed-in tariff (FIT) or REC system, it becomes vulnerable to policy changes. In particular, because the proposed NRE Act amendment would abolish the RPS and transition to a renewable-energy contract market, policy-change risk has become increasingly important for projects financed on the basis of existing RPS/REC revenue.

Accordingly, lenders typically review whether NRE facilities are constructed in a timely manner, operated in an ordinary manner and generate stable profits from generation, while they also tend to consider security (including credit or guarantee by the developer or its parent) as an important factor.

The following are reviewed for timely completion of construction of the NRE facilities:

• the legitimacy of all permits issued for the NRE business, including the EBL;
• the existence of resident receptiveness and any residents’ complaints;
• the procurement of the grid connection; and
• the credit and completion guarantee issued by the EPC contractor.

The following are reviewed for ordinary operation of NRE facilities and stable profits:

• the location of the project site on which the NRE facilities are installed;
• the REC for each source of NRE;
• the execution of a fixed price (SMP plus REC) agreement – as the existing fixed-price auction is expected to be replaced by a renewable-energy contract market (long-term fixed-price auction) from 1 January 2027 under the proposed amendment, new projects should be assessed principally by reference to an offtake structure based on the contract market or PPAs; and
• the expertise, track record and adequacy of the operational costs of the O&M contractor for maintenance of the facilities.

The proposed NRE Act amendment would replace the RPS with a government-led contract market and end new REC issuance on 31 December 2026, while preserving issuance and trading for pre-deadline REC holders and certain MCEE-recognised existing licensees. Other incentives include:

• FIT payments from the Electric Power Industry Infrastructure Fund covering the difference between the MCEE’s reference price and lower NRE market prices;
• K-RE100 certificates for consumers meeting targets through generation, RECs, green premiums or PPAs, usable for indirect-emissions reductions and marketing; and
• NRE-generation tax credits of up to KRW100 million for SMEs through tax years ending before 31 December 2028.

Since the adoption of the Solar Panel Waste Management Plan on 5 January 2023, solar panels have been included under the extended producer responsibility (EPR) system. As a result, solar panel manufacturers and sellers are now obligated to collect and recycle a certain quantity of waste panels, and according to the Ministry of Environment’s public notice, the total volume of mandatory solar panel recycling for 2025 is set at 801 tonnes. The government aims to raise recycling and reuse to at least 80% within three years, and waste-panel generation is projected to reach approximately 9,632 tonnes in 2032.

In addition, pursuant to the Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles, the Minister of Environment may establish future waste resource collection centres for the collection, storage and recycling of waste solar panels. The costs necessary for the establishment and operation of such centres may be fully or partially covered within the budget. The functions that may be undertaken by these collection centres are as follows:

• collection, storage and recycling of waste batteries, etc;
• performance evaluation and sale of waste batteries, etc; and
• statistical research and R&D to promote the recycling of waste batteries, etc.

A proposed amendment announced for legislation on 9 September 2025 would further expand the centres’ functions, allow local-government heads to establish and operate them, and broaden covered items beyond electric-vehicle batteries and solar panels to include hydrogen-vehicle fuel cells and core wind-turbine components.

No specific law governs wind-turbine blade disposal or resource circulation, unlike solar and battery waste; the Waste Control Act and other general laws apply. An 18 May 2026 National Assembly Research Service analysis cited difficulties dismantling, transporting and recycling composite blades, including fibre-reinforced plastic, and proposed integrated rules for continued-operation reviews, decommissioning plans, restoration liability, blade-disposal standards and repowering. The MCEE projects 816 ageing wind facilities from 2026, likely intensifying legislative discussion.

The energy policy under the Lee Jae-myung administration prioritises accelerating the energy transition through NRE. Key initiatives include building RE100 industrial complexes and a west coast energy highway to transmit 20 GW of offshore wind by 2030 via submarine cables to major industrial zones, along with a solar and wind annuity programme. Anticipating stronger support for renewables, the government has established MCEE and transferred and centralised energy-related permitting authority formerly held by MOTIE to accelerate these initiatives.

On the legislative front, the Special Act on the Promotion of Offshore Wind Power Deployment and Industrial Development took effect on 26 March 2026. Under the Act, the emphasis is shifting from developers individually managing the entire project process to a government-led, planned “one-stop system” that systematically promotes offshore wind projects. The Act provides for the establishment of an Offshore Wind Power Committee under the Prime Minister, which will support all aspects of offshore wind projects including co-ordination, permitting and approvals for environmentally friendly project zones with confirmed community acceptance.

Meanwhile, privately led individual siting and local-government-led integrated complexes continue to coexist with the planned-siting model under the Special Act on Offshore Wind Power. Integrated complexes benefit from incentives of up to 0.1 REC per MWh and may request KEPCO to construct shared interconnection facilities. However, current laws do not prescribe minimum separation distances between projects to mitigate generation losses from external wake effects in large-scale clusters.

Separately, a proposed amendment to the NRE Act would replace the existing RPS scheme with a government-led renewable energy contract market (auction) scheme from 1 January 2027. Existing REC issuance will end on 31 December 2026, while the statutory basis for the spot market will expire on 31 December 2029. As these changes may materially affect projects relying on RPS and REC revenues, relevant legislative developments should be closely monitored.