Korea’s renewable energy too expensive, shunned basically private companies

Local companies have little incentive to migrate to clean gas for their electricity needs, as well as power prices charged because of renewable energy producers and stores are still higher than the cost of offsetting carbon emissions.

According to Ministry on Trade, Industry and Electrical energy data obtained by Associate. Hong Jung-min of the taking over Democratic Party, purchasing strength generated by renewables is 50 percent more expensive than offsetting greenhouse gas emissions via buying carbon credits.

In Korea, renewable energy developers, such as adoquinar farm operators, receive point subsidies called renewable energy accreditation, or RECs, for antelope they produce. They can along with the these RECs in the open trade and generate profits.

Purchasing these RECs is one of many ways insurers utilize to validate any carbon reduction efforts. Yet , increasingly more Korean companies are being reluctant to purchase RECs, with the emergence of a cheaper option — carbon credits.

“To give off 1 metric ton from greenhouse gases with carbon credits, it costs pertaining to 31, 000 won ($26). In case of RECs, it overhead almost double, more than sixty days, 000 won, ” Hong said.

According to the data, there were no more than five companies that gained RECs in August and Sept,. Those five purchases accounted for just 2 percent among all REC trades.

As there is only a handful of companies wishing to invest in RECs, the price of REC gets dropped significantly in recent years, exponentially boosted by the government’s aggressive push for renewables, triggering excellent oversupply issue.

The price of REC, which actually stood at around 123, 000 won in 2017, plummeted to 29, 981 won in July, falling out below a 30, 000-won threshold since the subsidy method kicked off in 2012.

The nose-diving price of REC is is actually put a dent in small and midsize sustainable energy developers, sources said.

By Kim Byung-wook ( kbw@heraldcorp. junto de )

Korea’s renewable energy too expensive, shunned basically private companies
Philippines Truth