Accelerating Renewable PPAs in South Korea: 2025 Regulatory Updates and Unresolved Challenges

research 2025-08-06

Energy Markets & Policy Issue Brief Renewable Energy

Accelerating Renewable PPAs in South Korea: 2025 Regulatory Updates and Unresolved Challenges

Brooke Savoy

Brooke Savoy

About

Since their introduction in the Korean power market in 2021, Power Purchase Agreements (PPA) have emerged as a preferred method of stable renewable energy procurement for companies. As of June 2025, 1.7 GW of renewable energy have been contracted through PPAs. The PPA system has evolved rapidly over this period, including multiple regulatory revisions in the first half of 2025. This issue brief serves as a source to track updates and highlight unresolved challenges that continue to hinder wide-scale renewable PPA uptake.

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Accelerating Renewable PPAs in South Korea 2025.pdf

Executive summary

Regulatory Updates

PPA contracts with ESS facilities
Monthly settlement of charges
Proposed removal of minimum generator capacity requirements for off-grid PPAs
Trial PPA market for RE100 companies

Unresolved Challenges

Accessibility
- Minimum capacity requirements
- Opaque PPA grid + ancillary fee setting
Flexibility
- Restricted supplementary electricity procurement

Recommendations

Accessibility
- Removing minimum capacity requirements for all PPA types
- Disclosing PPA grid use fee + ancillary fee information
Flexibility
- Expanding scope of supplementary electricity providers

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Policy Research and Recommendations

We conduct in-depth analysis of climate, energy, industrial, and economic policies to propose viable policy alternatives and help bring about real policy change.
Legal Action and Litigation

We hold corporations and governments accountable when they delay climate action, utilizing a range of legal strategies, including litigation, to drive policy improvement.
Communications and Campaigns

We believe that the power to change the world lies with people. Through compelling messages and diverse communication channels, we raise public awareness about the climate crisis and inspire collective action.
International Cooperation

We understand that climate change knows no borders. Through networking and collaboration, we work with global environmental organizations to promote change at the international level.