This report focuses on advancing the structural sophistication of the system, improving financial accessibility, and expanding market flexibility to accelerate renewable energy deployment in Korea. As corporate RE100 implementation methods diversify, there is a growing need for portfolio-based procurement strategies rather than reliance on a single approach. Accordingly, greater policy flexibility and institutional refinement have become essential. This report proposes specific improvements in four areas.
· Green Premium:
While the scheme offers the advantage of low-cost renewable energy procurement, it still has limitations in terms of recognizing greenhouse gas (GHG) reduction achievements and driving additional renewable deployment. Enhancing certificate transparency and traceability, as well as expanding participation by general consumers, is necessary.
· Utility Green Tariff (UGT):
The current limited role of KEPCO (Korea Electric Power Corporation) should be expanded so that third-party PPAs can be transformed into customized tariffs led by KEPCO. By aggregating small-scale solar and behind-the-meter (BTM) resources, it is possible to design more competitive tariff schemes.
· Korean-style VPPA:
To overcome the limitations of the current REC-based virtual PPA, the introduction of derivative financial instruments and risk-management intermediaries is recommended. Allowing REC resale and fostering a secondary market would further strengthen the mechanism.
· Direct PPA:
Although direct PPAs provide price competitiveness, issues remain regarding contract rigidity, lack of tax incentives, and financial risks. Suggested improvements include enhancing contractual flexibility, introducing tax credits, and establishing government guarantees and insurance schemes.