Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 211
Offshore Wind Worldwide 2023
compared to other types of renewable energy (i.e., solar PV and onshore wind) to accommodate the higher investment cost. The
Korean New and Renewable Energy Center
of the Korean Energy Agency (KNREC) issues
RECs to certified eligible facilities. KNREC
will determine (upon inspection) whether
a facility complies with the standards to be
certified and registered to receive RECs (and
also determines the applicable REC multiplier). RECs can be traded on the spot market
or under long-term contracts.
There used to be a local content rule in the
"Rules on REC Issuance and Trading Market
Operation" that if local manufactured parts
are used in the installation of offshore wind
power facilities over a certain percentage, an
REC weight could apply as the rule recognizes half of the internal network connection
distance. In April 2023, however, this preferential rule was repealed for being a discriminatory factor between domestic and foreign
companies under general trade law.
1.2 Exclusivity under the Electricity
Business Licence
To construct, own, and operate an offshore
wind power generation project, a developer
must obtain an electrical business licence (EBL) from the MOTIE, specifying the
amount of generation capacity licensed to
be developed, the location for the project
and a "preparation period" during which the
operation of the proposed project must be
commenced.
The MOTIE issued a rule effective August
211
2018 (the "Rule") requiring offshore wind EBL
applicants to have collected meteorological
data for a period of at least one year. In order
to install a meteorological measurement
device (e.g., LiDAR, floating LiDAR or met
mast), the developer typically is required to
obtain a public waters occupancy permit
(PWOP) from the applicable public waters
management authorities (PWMA) for such
installation pursuant to the Public Water
Management and Reclamation Act. PWOP
is granted with exclusivity for a period of
four-years from the issuance date to install
a meteorological measurement device to a
specified area corresponding to the location
of the meteorological measurement device
(the "Effective Area") unless there is another
developer(s) who obtained a preceding
PWOP for areas overlapping the Effective
Area in whole or in part. The Effective Area
was a 5 km radius of each device (an area of
78.53km2). However, the MOTIE implemented an amendment to its Rule effective from
November 11, 2020, which expanded the
Effective Area to a 100 square kilometer area
extending 10 kilometers from any such measuring device in each cardinal direction (i.e.,
a 100km2 square (rather than the current
78.53km2 circle) centered around the measuring device).1 Yet, the general opinion was
that the criteria for the Effective Area was
still not clear. Accordingly, in March this year,
the MOTIE announced a further amendment to the Rule in its administrative notice
of the "Notification on Detailed Permit Criteria for Power Generation Business (the "Notification")". According to the Notification,
the Effective Area for an offshore measuring
1 Although the Effective Area has been expanded to 100 square kilometers, a developer can use no more than 80 square kilometers within this expanded Effective Area for WTG installation in order to prevent any overlap with other wind farms and keep the minimum distance between them.
