South Korea Launches 1GW Solar Tender With Stricter Carbon Standards And Lower Price Cap

South Korea's Ministry of Trade, Industry and Energy (MOTIE) has recently launched a bidding process for a 1GW solar power project, outlining the details of its latest renewable energy procurement initiative. The proposed ceiling price for this solar project has been set at 155.74 Korean won per megawatt hour, equivalent to approximately 113.6 U.S. dollars. This marks a slight reduction compared to last year's maximum price of 157,307 Korean won per megawatt hour, reflecting the government's intention to encourage greater cost competitiveness in the renewable energy sector.

As part of the bid specifications, MOTIE has introduced carbon emission criteria favoring photovoltaic modules with lower carbon footprints. Specifically, the minimum requirement stipulates that carbon emissions must not exceed 655 kilograms of carbon dioxide per kilowatt. This is consistent with the government's broader environmental goals and aligns with the sustainability standards applied during a similar 1GW solar procurement process conducted last year.

In addition to the solar initiative, MOTIE has announced plans to procure 1.25GW of onshore wind power in 2025. The maximum price for wind power has been set at 176,565 Korean won per megawatt hour. To further stimulate market development and facilitate renewable energy adoption, the ministry plans to connect solar and wind power producers with corporate buyers participating in the RE100 initiative, promoting the formation of fixed long-term power purchase agreements (PPAs). This approach is intended to foster a more stable and investment-friendly renewable energy market.

According to data released by the Korea Energy Agency, South Korea installed approximately 2.5GW of new solar power capacity in 2024. This brought the country's cumulative photovoltaic capacity to over 29.5GW, reflecting the steady progress South Korea is making toward its clean energy transition goals.