Direct power purchase agreement to go into effect next month

A picture of wind turbines in France run by Q Energy [YONHAP]

The direct power purchase agreement (PPA), which allows electricity consumers to purchase electricity directly from renewable energy generators, will go into effect next month, the Ministry of Trade, Industry and Energy said Wednesday.

The new system will be applied to electricity generated from solar, wind, water, biomass and geothermal energies, in line with sources that are considered eligible to achieve the global RE100 initiative.

“The implementation of the direct PPA system will allow domestic companies to more actively participate in the RE100 initiative due to wider options to purchase renewable energy,” said the ministry.

Previously, domestic companies had to directly invest in renewable energy businesses or purchase electricity sourced from renewables through the Korea Electric Power Corporation under a third-party PPA.

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]