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RE100 delivers policy statement to the Minister of Climate, Energy and Environment: “12th Basic Plan must build the supply and procurement systems to enable renewable expansion”

As Korea prepares its 12th Basic Plan for Long-term Electricity Supply and Demand (“12th Basic Plan”) and reforms its renewable energy procurement system, global renewable energy initiative RE100 has called on the government to set a power-sector transition pathway aligned with the country’s Nationally Determined Contribution (NDC) and to build a solid foundation for corporate renewable procurement. Because decisions on the power mix and on renewable supply and procurement will shape how companies can source renewable electricity for years to come, RE100 stressed that ambitious renewable targets must be matched by concrete implementation plans and supply systems.

Climate Group, which leads RE100, and the Korea Sustainability Investing Forum (KoSIF), the RE100 Local Campaign Partner in Korea, announced that they formally delivered the RE100 Policy Statement on Korea’s 12th Basic Plan for Electricity Supply and Demand to Kim Sung-whan, Minister of Climate, Energy and Environment, on October 29th.

The statement comes as the government has postponed its draft 12th Basic Plan until after the public discussion process on nuclear power, and while the Renewable Portfolio Standard (RPS) is being transformed into a competitive-auction-based contract market. Ahead of these key policy decisions, RE100 set out policy recommendations to expand renewable energy and secure stable procurement, so that corporate demand for renewables is fully reflected.

First, the two organisations pointed out that the current 11th Basic Plan projects the 2035 power-sector greenhouse gas emissions to be roughly 36.7 million tonnes above the level implied by the upper end of Korea’s NDC for the same year. They urged that the 12th Basic Plan close this gap by setting out a concrete emissions-reduction pathway centered on renewable expansion. In particular, they called for a year-by-year deployment plan to reach the 2030 target of 100 GW of renewable capacity, backed by the policy tools needed to deliver it.

Improving conditions for corporate renewable procurement was identified as another priority. Around 200 RE100 members currently operate in Korea, yet they source only 12% of their electricity in the country from renewables – far below the global average of 43%. Many companies have committed to scaling up renewable electricity but struggle to secure enough of it in Korea. According to research commissioned by RE100, renewable electricity demand from Korea-headquartered RE100 companies is expected to reach 156.4 TWh by 2038. By contrast, renewable supply available through corporate power purchase agreements (PPAs) is projected to reach only 65 TWh by the same year. This points to a clear need to expand the long-term PPA supply base to keep pace with growing corporate demand.

Against this backdrop, the statement stressed that the shift of the RPS to a competitive-auction-based contract market must not shrink companies’ opportunities to procure renewables. RE100 called on the government to transparently disclose the volume of renewable supply available through competitive auctions and corporate PPAs, giving companies greater predictability for their medium- to long-term procurement plans. It also proposed linking large-scale, government-led renewable projects to long-term PPAs, and expanding supply through RE100 industrial complexes and Distributed Energy Specialized Areas.

On the power mix under discussion for the 12th Basic Plan, RE100 emphasised that new LNG power plants and lifetime extensions of coal plants should not be the default response to supply and demand challenges. It urged the government to avoid adding fossil-fuel capacity and to prioritize non-fossil alternatives, including renewable expansion, grid reinforcement, energy storage systems (ESS) and demand-side management. RE100 added that a renewables-based power system would reduce Korea’s exposure to volatile prices of imported fossil fuels, strengthening both Korea’s energy security and industrial competitiveness.

Ollie Wilson, Head of RE100, Climate Group, said: "The 12th Basic Plan offers a critical opportunity to strengthen Korea’s energy resilience, industrial competitiveness and long-term economic prosperity through accelerated investment in renewable energy. If Korea wants to compete in the AI era and global marketplace, it must protect itself from volatile fossil fuel price shocks. It needs a clear roadmap for rapidly scaling up solar, wind, storage and modernising the grid to support the energy transition. Providing reliable access to renewable electricity will give businesses like RE100 members the confidence to invest and grow. If it does, Korea will put itself in pole position to become one of the world’s green energy economic powerhouses."

Yang Chun Seung, Executive Director, Korea Sustainability Investing Forum, said: “The 12th Basic Plan and the reform of the renewable procurement system will determine the real conditions under which Korean companies can source the renewable electricity they need to stay globally competitive. As the RPS is reformed, the government must disclose competitive auction volumes and the volumes available for corporate procurement transparently and in advance, keeping policy uncertainty to a minimum, so that PPAs and other voluntary procurement options are not reduced.”

Climate Group and KoSIF will continue to engage with RE100 companies in Korea, gathering their procurement challenges and policy needs, and will keep providing policy recommendations to inform the development of the 12th Basic Plan and the reform of the renewable procurement system.