Korea Plans Renewable Energy Targets for Public Institutions in 2027

South Korea is preparing to require public institutions to meet renewable energy targets under a new framework expected to begin in 2027, as the government overhauls the country’s system for expanding clean-power capacity.

The Ministry of Climate, Energy and Environment is developing a target-management program that would cover public bodies, including local public enterprises. The Korea Energy Agency is also involved in preparations for the system, which is intended to be in place before the first competitive renewable energy bidding round of next year.

The planned framework would set two types of targets. One would measure the capacity of renewable generation facilities installed directly by each institution. The other would assess the amount of idle land that an institution makes available to renewable energy developers. The land component is designed to include public bodies that do not operate power-generation businesses themselves but control sites that could host clean-energy projects.

The change is tied to the scheduled abolition of the Renewable Portfolio Standard on Jan. 1. Under the existing program, electricity generators with at least 500 megawatts of capacity, including Korea Electric Power Corp. and its generation subsidiaries, must supply a designated share of their output from renewable sources.

Authorities have sought a replacement because many obligated companies met their requirements by purchasing Renewable Energy Certificates from other producers rather than building renewable facilities of their own. Under the emerging market structure, developers selected through competitive bidding within government-set price ceilings would enter long-term, fixed-price electricity supply contracts with KEPCO.

The public-institution targets are intended to give state-linked organizations a direct role during that transition. The government has set a goal of expanding the country’s renewable generation capacity to more than 100 gigawatts by 2030. It is also seeking to raise the average renewable electricity use rate among public institutions from about 14 percent to 60 percent by the end of the decade.

To support that objective, participation and implementation under K-RE100, Korea’s program encouraging 100 percent renewable electricity use, has been added to the management evaluation criteria for public institutions this year. Those evaluations can influence how government-owned and government-affiliated organizations are assessed and managed.

Detailed target levels and the institutions covered have not yet been announced. The ministry plans to establish the new framework before competitive bidding begins in the first half of 2027, making the design and allocation of obligations a key next step in Korea’s renewable energy policy shift.