Offshore Wind Worldwide 2022 edition - Flipbook - Page 166
166
D. O
nshore grid congestions,
prioritization of renewable energy
resources and compensation
mechanisms
Current Korean law does not expressly
require renewable energy generators to
implement curtailment orders issued by KPX
or KEPCO (other than in Jeju Province
where wind, solar, and fuel cell generators (i)
with capacities exceeding 1MW, or (ii) with
capacities not exceeding 1MW 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 do, however, require wind and
solar energy power generators larger than
20MW to install set-point communication
facilities to implement potential curtailment
orders. The result is that although
curtailment of renewable power generation
on the Korean mainland is not yet required,
the Korean grid is being equipped with
infrastructure that will enable regulators to
implement curtailment orders in the future if
and when required.
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
HoganofLovells
Republic
Korea
Infrastructure, which is KEPCO’s general
terms and conditions:
1.where there is a need to control the
balance of supply and demand of
electricity;
2.where KEPCO’s infrastructure needs to be
suspended for construction (e.g., repair,
replacement, etc.);
3.where it is requested by KPX pursuant to
the Regulations on the Electricity Market
Operation; or
4. where there is an emergent or serious
need to suspend the use of KEPCO’s
infrastructure for safety.
We note that, although KEPCO has the
authority to suspend or restrict access to
transmission and distribution infrastructure
for the above reasons, to our knowledge, it
has never actually exercised this authority on
a utility-scale renewable energy project. In
the event of such restriction, KEPCO is
required to provide generators subject to
these restrictions certain benefits in the form
of discounted grid usage fees as partial
compensation therefor.