Survey on Corporate PPA Grid Use Fees in South Korea
research 2025-12-01

Survey on Corporate PPA Grid Use Fees in South Korea

About

With the expansion of RE100 participation among domestic and global companies and the growing emphasis on ESG management, the need for renewable energy procurement is increasing. Power Purchase Agreements (PPAs) are emerging as a key mechanism for corporate renewable energy sourcing. However, because corporate PPA users must utilize KEPCO’s transmission and distribution network for electricity delivery, they are required to pay separate grid use fees. Due to persistent concerns from industry regarding the lack of transparency in fee calculation, duplicative charging structures, and limited predictability, reforming the grid use fee system has become urgent in order to accelerate PPA adoption.

This study aims to systematically identify the challenges companies face—or expect to face—regarding grid use fees during the PPA adoption process, depending on their current stage of renewable energy procurement (procuring, under review, or undecided). It also assesses industry perceptions and demands for improvement related to the transparency of grid fee calculation, additional cost structures, issues of double-charging, and potential fee increases. Based on these insights, the study seeks to propose reasonable policy recommendations for improving the grid use fee system to support broader PPA deployment.

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