Wedoany.com Report-Jun 1, South Korea’s Ministry of Trade, Industry and Energy (MOTIE) has announced a tender for 1 gigawatt (GW) of solar power capacity. The procurement process, aimed at expanding renewable energy, was launched to support the country’s clean energy goals. The tender sets a maximum price of KRW 155,740 ($113.6) per megawatt-hour (MWh) for proposed solar projects, slightly lower than last year’s ceiling of KRW 157,307/MWh. This adjustment reflects recent trends in competitive bidding and a reduced levelized cost of energy for photovoltaic (PV) systems.

The tender includes an incentive for solar modules with reduced carbon footprints. To qualify for the preferential price, modules must meet a minimum carbon emission standard of 655 kg CO2 per kilowatt. This measure encourages the adoption of environmentally sustainable technologies in solar project development.

In a similar effort last year, MOTIE successfully allocated 1 GW of solar capacity through a comparable procurement process. This year’s tender continues the ministry’s commitment to expanding renewable energy infrastructure. Additionally, the government plans to procure 1.25 GW of onshore wind power, with a price cap set at KRW 176,565 per MWh.

MOTIE also outlined plans to facilitate partnerships between renewable energy companies and businesses participating in the RE100 initiative, which focuses on sourcing 100% renewable electricity. Companies securing fixed contracts through this tender will have opportunities to enter power purchase agreements with RE100 demand companies, fostering greater collaboration in the renewable energy sector.

In 2024, South Korea added 2.5 GW of new solar capacity, increasing its total installed PV capacity to over 29.5 GW, according to data from the Korean Energy Agency. This growth underscores the country’s ongoing efforts to enhance its renewable energy portfolio and meet rising energy demands sustainably.