Press Releases

RE100 Sends Open Letter to President Lee Jae-myung,
Urging a 33% Renewable Energy Target and Effective PPAs

Korea's renewable procurement rate is just 12%, far below the 53% global average

Letter recommends a stronger NDC, grid investment and PPA reform

As President Lee Jae-myung has pledged to expand renewable energy policy, international organizations have welcomed the commitment while calling for concrete regulatory reform. Climate Group, which leads the global renewable energy initiative RE100, and the Korea Sustainability Investing Forum (KoSIF), the RE100 Local Campaign Partner in Korea, announced that they recently delivered an open letter to President Lee setting out the policy measures needed to scale up renewable energy and achieve carbon neutrality in Korea.

The letter sets out the key policy priorities for Korea’s renewable energy transition, including raising the national Nationally Determined Contribution (NDC), investing in grid infrastructure, and reforming the renewable energy power purchase agreement (PPA) framework.

[Source] The open letter sent to President Lee Jae-myung by Climate Group and the Korea Sustainability Investing Forum

The letter placed particular emphasis on the need to strengthen the 2035 Nationally Determined Contribution (NDC), which is due to be announced this year. Given corporate demand, the letter states, renewables should account for at least 33% of the power mix by 2030 — the minimum required to meet the procurement needs of global companies and to align with international climate standards. The previous Yoon Suk-yeol administration, however, lowered the 2030 renewable energy target from 30.2% to 21.7%, a move that raised concerns about running counter to carbon neutrality. Observers note that a more ambitious 2035 NDC is indeed essential if Korea is to reach carbon neutrality on time.

“Korean companies are showing a strong willingness to switch to renewable energy in order to strengthen their global competitiveness, but high costs and limited supply still make the transition difficult,” said Chun Seung Yang, CEO of the Korea Sustainability Investing Forum. “This open letter was prepared to propose policy solutions that can address the structural barriers surrounding renewable energy.”

Indeed, although corporate demand for renewable energy in Korea continues to grow, actual procurement remains very low because of regulatory constraints. As of 2024, RE100 members in Korea sourced an average of just 12% of their electricity from renewables, far below the global average of 53% and well behind neighbouring markets such as China (59%), Japan (36%) and Vietnam (58%).

RE100 members in Korea consume around 68TWh of electricity a year, more than 10% of the country’s total electricity use, which shows that a substantial demand base already exists. If the government reforms the system to improve corporate access to renewable energy, the market could therefore expand significantly within a short period.

Climate Group and the Korea Sustainability Investing Forum pointed to grid constraints as one of the major obstacles holding back renewable energy deployment in Korea. Even where there is ample suitable land for new renewable energy facilities, projects are frequently delayed or halted because the local grid lacks the capacity to accommodate them. The joint letter therefore stated that proactive investment in grid infrastructure must go hand in hand with market reform that guarantee access for renewable generators.

The two organizations also welcomed President Lee’s campaign pledge to improve the renewable energy power purchase agreement (PPA) framework, while proposing measures to make it more effective. Specifically, they stressed that for PPAs to work in practice, reform must include transparent pricing of network charges and associated costs, the easing of restrictive contract terms, and the simplification of complex administrative procedures.

The letter further recommends that the responsibilities and authority of regional governments be formally integrated into the national climate plan so that they can act as genuine delivery agents of climate policy. It also highlights the importance of building an inclusive, decentralized climate governance system based on close cooperation between central and local government.

“Increasing Korea’s 2030 renewables target to 33% and improving PPA frameworks will drive investment, improve energy security, and strengthen the competitiveness of Korea’s economy.” said Helen Clarkson, CEO of Climate Group. “The President has signalled his intent, as evidenced by mentioning RE100 in his inaugural address. We look forward to working with the new administration and our RE100 members to make this vision a reality.”

RE100 is a global campaign under which companies commit to sourcing 100% of the electricity they use from renewable energy, and many companies around the world, including Apple and Google, take part. More than 180 RE100 members are currently active in Korea. (End)