SEJONG, Sept. 19 (Korea Bizwire) – The South Korean government will provide incentives to encourage solar power plant operators to set up bulk energy storage facilities as part of its efforts to foster the local renewable energy market, the trade ministry here said Monday.
Those who install the energy storage system (ESS) at their solar power plants will be given additional points on assessment of their renewable energy certificates (RECs) starting next year, according to the Ministry of Trade, Industry and Energy.
The REC-tagged electricity is officially regarded as energy that is generated from a renewable energy resource, including solar light, wind and biomass.
The same incentive system has been applied to wind power-generated electricity providers since last year.
The ministry said the benefit program is aimed at encouraging local power operators to save energy in large-scale batteries and efficiently distribute the power.
As a result, a combined 440 billion won (US$391.6 million) worth of new demand for ESS will be created by 2020, the ministry added.
The South Korean government has been focusing on reducing fossil fuel energy and expanding green energy resources by pouring more than 40 trillion won into the sector in the coming five years.
It will shut down 10 superannuated coal-powered plants nationwide, with the renewable power supply target, or the percentage of green energy sources, set at 6 percent by 2020.