Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 219
Offshore Wind Worldwide 2023
4. GRID CONNECTION
4.1 Planning and Construction of
the Grid Connection System
The project developer is responsible for
preparing a viable plan for connecting the
OWF to the applicable onshore KEPCO
substation and obtaining rights to use the
lands on which transmission lines will be
installed. The transmission lines between
the OWF and the grid connection point will
be constructed by KEPCO on behalf of the
developer or by the developer pursuant to
KEPCO‘s engineering standards.
4.2 Responsibility for the Cost of the Grid
Connection System
The costs associated with connecting to the
transmission grid are borne by the developer.
4.3 Consequences of Delays and
Disruptions of the
Grid Connection System
Risk allocation for delays and disruptions of
the onshore grid is technically a matter for
contractual negotiation in the KEPCO grid
connection agreement, but, in practice, IPPs
typically have no choice but to accept KEPCO‘s general terms and conditions, which
do not provide compensation for delays or
disruptions of the onshore grid connection
absent fault of KEPCO.
4.4 Onshore Grid Congestions,
Prioritization of renewable
Energy Resources and
Compensation Mechanisms
Korean law does not expressly require
renewable energy generators to implement
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curtailment orders issued by KPX or KEPCO
(other than in Jeju Island where wind, solar,
and fuel cell generators with (i) capacities
exceeding one MW, or (ii) capacities not
exceeding one MW and connected to transmission lines of 22.9kv or higher, are obligated to follow curtailment orders issued by
the KPX).
Amendments to the Regulations on the
Electricity Market Operation effective
April 29, 2020 (the "Amendments") do, however, require wind and solar energy power
generators larger than 20 MW to install
set-point communication facilities to implement potential curtailment orders, i.e., Korean grid is being equipped with infrastructure
that will enable regulators to implement
curtailment orders in the future if and when
required. At the time of the Amendments,
the curtailment only occurred in Jeju Island
where powers generated by renewable
energy are in excess. In 2021, we have seen
the first curtailment in land on powers generated by renewable energy. It is expected
that curtailments on renewable energy will
occur more frequently given concerns on
grid congestions.
On a related note, KEPCO is entitled to
suspend or restrict the use of transmission
or distribution infrastructure in the following
circumstances upon notification to customers (notification may be sent afterwards
in case of emergency) in accordance with
the Regulations on Use of Transmission and
Distribution Infrastructure, which is KEPCO‘s
general terms and conditions:
