Contents

1. Renewable Energy and Corporate Climate Change Strategies

–  Use of Renewable Energy Emerging as a Key Factor for a Greenhouse Gas (GHG) Emissions Reduction and Corporate Competitiveness 

–  Renewable Energy and Calculation of Scope 2 GHG Emissions 

–  Cases of GHG Emissions Reduction by Procuring Renewable Energy

–  Carbon Neutrality and Renewable Energy 

–  Corporate Procurement of Renewable Energy 

–  RE100 and Principles of Renewable Energy Procurement 

–  Eligibility of Renewable Energy 

2. Korea’s Electricity Market and the Renewable Energy Procurement Scheme 

–  Structure of Korea’s Electricity Market Before the Introduction of the Renewable Energy Procurement Scheme

–  Background to the Discussion of a Renewable Energy Procurement Scheme in Korea and its Legislation 

–  Renewable Energy Use Recognition Scheme (Voluntary Tracking System for Renewable Energy Use) 

–  Additionality of Renewable Energy in Korea 

–  Korea’s Corporate Renewable Energy Purchase Scheme and GHG Emissions Calculation 

–  Calculation of Residual Mix and GHG Emissions 

–  Economic Evaluation of Each Procurement Method 

3. Practical Guideline for Each Procurement Type

–  How to Use the Platform 

–  Green Premium 

–  REC Purchase 

–  PPA 

–  Self-generation 

4. Appendix

Summary

1. Renewable Energy and Corporate Climate Change Strategies

–  Many countries are announcing their 2050 net-zero goals and corporates are seeing renewable energy use as a key method to reduce GHG emissions and reach net-zero by 2050.

–  Along with corporates actively announcing their net-zero goals, mandatory climate-related disclosures coming into effect and increases in engagement with suppliers to use renewable energy will lead to the consistent increase of corporate renewable energy demand. 

–  Corporates can self-generate or purchase renewable energy. 

–  Purchasing renewable energy can be categorized into 3 methods according to how and from whom corporates can purchase electricity and EACs; ①PPA ②Green Pricing ③Unbundled EAC Purchase. 

–  Actual renewable procurement methods take various forms according to the country’s electricity market system and legislation. 

–  One of the leading corporate renewable energy initiatives, RE100 requires corporates to be able to track ownership of renewable energy through a comprehensive tracking system covering stages from generation to claiming usage. 

2. Korea’s Electricity Market and the Renewable Energy Procurement Scheme 

– The discussion on introducing a corporate renewable energy procurement scheme in Korea started in 2018. In 2019, the introduction of the scheme was formalized with the RE100 policy being mentioned in the Third Energy Master Plan. 

– Since 2021, the corporate renewable energy procurement scheme, including Green Premium, REC Purchase, Third-party PPA, and Direct PPA, was implemented in accordance. 

– Green Premium: Method of renewable energy procurement through the electricity consumer paying an extra premium to KEPCO voluntarily. 

– REC Purchase: Purchasing RECs, separately from electricity purchases, and converting them into Confirmation of Renewable Energy Use to make usage claims. 

– Direct PPA: Contracting a direct PPA between the electricity consumer and the renewable energy generator. 

– Third-party PPA: Contracting a PPA where KEPCO mediates between the electricity consumer and the renewable energy generator.