Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy

The Ministry of Trade, Industry and Energy promotes the diversification of energy sources through the promotion of technological development, use and distribution of new energy and renewable energy, and the activation of the new energy industry and the renewable energy industry. The Act allows for establishing renewable portfolio standards (RPS) for minimum shares of renewable energy generation, and for trading of renewable energy certificates.

It also promotes the stable supply of energy, environment-friendly conversion of the energy structure, and the reduction of GHG emissions. Forms of renewable energy included are, among other solar, bio-energy, wind, water, fuel cells, hydrogen, marine, geothermal and other forms other than coal, nuclear or natural gas.

The Act was amended in March and October 2020. Amended provisions include, amongst others: providing for residents in areas where new and renewable energy facilities are installed to participate by investing or contributing to a cooperative and requiring agencies that implement distribution projects of new and renewable energy to formulate and implement an annual plan for the follow-up management of the facility.