Prof. Jae-Seung Lee’s Research on the Impact of Renewable Portfolio Standard (RPS) System on the Korean RE100 System in Journal of Korea Technology Innovation Society (Vol.25, No.5, 2022)

This study clarified why Korea introduced the green premium, and analyzed the fact that the Korean RPS system had a great influence on the design of the green premium. While the global RE100 campaign aimed to voluntarily disseminate renewable energy by companies, the Korean RE100 system emphasized responding to the demands of global companies. Instead of REC and PPA, a green premium system linked to RPS was introduced as a means with a relatively low implementation cost. In addition, a separate RE100 REC market from the existing RPS REC market was introduced to prevent the overlapping use of renewable energy. Due to expanding the mandatory RPS supply ratio, Korean RE100 system has been operated being centered on green premiums, and the RE100 REC market is highly likely to be contracted. Through the above analysis, it was explained that the structural characteristics of the Korean RE100 system are the reason why the supply of renewable energy through REC purchase and PPA was not activated, and for the purpose of expanding the supply of renewable energy, it is necessary to continuously pursue R&D and measures to vitalize REC purchase and PPA.