Ⅰ. Introduction
1. Research background and purpose
This report summarizes the content presented by experts in each field at the Forum to Confront the Future Environmental Change related to the Expansion of Renewable Energy held by the Korea Environ...
Ⅰ. Introduction
1. Research background and purpose
This report summarizes the content presented by experts in each field at the Forum to Confront the Future Environmental Change related to the Expansion of Renewable Energy held by the Korea Environment Institute (KEI) on September 26, 2019.
ㅇ This report includes information on the current research and the position of Non-Profit Organization (NPO) groups in terms of the promotion of inland solar power generation projects to expand the supply of domestic renewable energy.
- Chapter 1: Current Status and Environmental Review Guideline of Inland Solar Power Generation
- Chapter 2: Energy Policy Improvement Plans to Activate the Supply of Inland Solar Power Generation Projects
- Chapter 3: Resident Participation Plan for Expanding Inland Solar Power
- Chapter 4: Rural Solar Power Supply Problems and Improvement Plans
ㅇ As the installation regulations have been strengthened following the establishment of the Inland Solar Power Environmental Review Guideline, this report aims to examine the discussions on the expansion of solar power generation in rural areas and measures to promote distribution through securing residents’ acceptability.
2. Background and improvements of the Inland Solar Power Environmental Review Guideline
Until recently, most inland solar power facilities have been planned and constructed in mountainous areas with low land prices, resulting in social conflict with local residents and environmental damage such as landslides and deforestation.
ㅇ The Inland Solar Power Environmental Review Guideline was introduced to minimize the environmental damage caused by solar power facilities located indiscriminately in mountainous areas.
ㅇ As the criteria for the site of the inland solar facilities are focused on the mountainous area, it is necessary to improve the guideline to suggest preferential development sites so that it can promote installment in rural areas and also the participation of local residents.
Ⅱ. Measures to Improve Energy Policy to Promote the Supply of Inland Solar Power Generation
1. Domestic inland solar power trends
Deteriorated profitability due to the falling prices of the solar power generation REC (Renewable Energy Certificate)
ㅇ The spot price of the REC has fallen since ’17, down to about 69,000 won as of April 2019, which is a 60% drop compared to the peak. The decline continued and in November 2019, it fell below the 40,000 won mark, fueling the sense of crisis among the developers in terms of investment recovery.
Promote large-scale business-oriented policies
ㅇ Due to the delay of implementing the local government-led renewable energy site plan, public sector-led renewable energy projects are being promoted for public enterprises, and as of April 2019, the land for 142 plants was secured capable of supplying 24 GW. Based on this figure alone, it is expected that the goal set for large-scale projects in the 3020 plan can be almost achieved.
2. Causes and possible solutions for inland solar power supply problems
Causes of inland solar power supply problems
ㅇ Policy based on a centralized ‘national project’ perspective
- So far, a centralized energy supply system has been established based on the sacrifice of a few regions. If renewable energy does not take a form of dispersed generation and is supplied to other regions via nationwide power grids, the residents of the area where renewable energy facility is located could feel that they have been victimized
ㅇ The role and status of the local governments are not being established in parallel.
- The role of local governments is merely a “route” for the central government’s policy enforcement, and the authority of the regional governments to lead the renewable energy business to economies of scale and to act as mediators is insufficient.
ㅇ Promotion of unilateral policy without considering the characteristics of local energy projects
- Countermeasures against the side effects of renewable energy projects tend to be uniformly led by the central government without careful consideration.
Solutions for the supply problem of inland solar power
ㅇ‘Local industrialization’ and ‘distributed power supply’ are the fundamental measures.
- Induce the renewable energy business to be recognized as a “local industry” that directly benefits local governments and local residents
ㅇ Strengthen the policy coordination system and cooperation system among central, regional, and local governments
- Enhance the coordination capability of regional governments to solve issues that arise in the local governments at the regional government level
ㅇ Efforts to improve residents’ acceptability at each stage of the project
- At the beginning of the project, the high public acceptance of renewable energy is applied to the community as well, so efforts to reflect it in the local community are necessary.
3. Policy proposals to promote the supply of inland solar power
Complement the renewable energy site planning system
ㅇ Prepare a regional plan in advance that combines environmental and economic evaluations
- Prior planning and information disclosure for candidate sites
ㅇStrategic environmental impact assessment through non-standing consultative committee
- It is necessary to prepare a guide at the technical level for large-scale development complexes, and this suggests technical standards for establishing the scope of participation of residents after selecting candidate sites for development.
Prepare a measure to activate small-scale power generation facilities
ㅇ Regulation of separation distances at the level of basic municipalities for small and medium-sized solar power generation facilities
- The ordinance of the local governments should abolish the restrictions on the separation distance and make residents’ consent procedures or briefing sessions mandatory for small businesses as well, and it is necessary to consistently search for candidate sites with high residents’ acceptance and encourage auction.
Strengthening the independence of local governments
ㅇ System improvements enabling the local government to function as the main body of the regional energy business
- It is necessary to improve the situation in which the local government is merely acting as a simple implementer of the national financial input project, and in most cases, the energy committee required by local ordinances is not functioning.
- It is necessary to establish a cooperative system between the dedicated organization of the local government and regional offices of related organizations.
Adjustment of the implementing entity of the government project
ㅇ Virtually no mechanism to induce competition between local governments for the public-funded projects such as the project of the Korea Energy Agency
- It is necessary to change the government project execution body to the local government (or regional dedicated organization).
- When the business entity is changed to the local government and the related budget is issued directly, competition among the local governments can be induced through the post-performance evaluation conducted by the central public institution and the budget allocation reflecting the result for the next year.
Provision of financial resources for small businesses at the regional level
ㅇ Need to continually build a local small-scale business financing system
- It is desirable to support at the local government level small-scale projects that are expected to undergo deteriorated business environments in the RPS system
Expansion of RE100 participation at the regional level
ㅇ Attracting companies that want to participate in the RE100 campaign at the local level or reviewing support plans for companies in their area
- The RE100 campaign functions sufficiently as an incentive to secure stable profits from the perspective of solar power generation companies.
Revitalization of ‘local community energy business’
ㅇ Design a policy to expand the scope of residents’ participation under the initiative of the local government, but to return practical benefits that can be experienced without huge burden to the residents
- There is a need to resolve the side effects caused by the difficulties of small businesses by making the renewable energy business more efficient and eco-friendly through economies of scale.
Ⅲ. Resident Participation Plan for Expanding Inland Solar Power
1. Domestic and foreign energy conversion policy and achievement
Global energy conversion policy flow and performance
ㅇ As of 2018, renewable energy accounted for 26.2% of global electricity demand.
-Hydroelectric power still occupies a high proportion, but the proportions of wind power and solar power are also gradually increasing.
Domestic renewable energy supply plan and power generation potential
ㅇ Renewable energy facility capacity is expected to increase from 13.3 GW (2016) to 63.8 GW (2030). More than 95% will be supplied as clean energy such as solar and wind power.
ㅇ The solar power market potential is estimated at 411 TWh/year, 321 GW. With wind power (39 TWh/year inland, 71 TWh/year offshore), the power generation potential that can cover the entire electricity demand is secured by solar and wind power alone.
2. Conflicts of renewable energy and causes
Examples of conflict on the site of renewable energy
ㅇ Conflicts of renewable energy facilities appear to be frequent because they are distributed in small scale throughout the region.
- Jeonbuk Muju Jung-ri solar power case
- Case of solar power generation in Jisun-ri, Buyeo, Chungnam
- Case of solar power generation in Namwol village, Gongju-si, Chungnam
Examples of renewable energy that cooperates with the region
ㅇ Ansan Citizen Development Cooperative
ㅇ Jeju Donghoecheon Village Solar Power
ㅇ Gwangju Sanghasa Resident Development
ㅇ Hamyang Energy Farm
ㅇ Boseong Agrovoltaic Plant
ㅇ Cheorwon Crane Solar
ㅇ Bonghwa resident participation renewable energy business
Causes of conflict over renewable energy
ㅇ Hazard issue and environmental damage caused by solar power facilities
ㅇ Absence of the regional growth concept among solar power companies
ㅇ Selecting a site not taking the environmental impact into consideration
ㅇ Site selection process without resident feedback
The conditions for improving the acceptability of renewable energy and participation among
ㅇ Energy conversion, ‘citizens’ power’ (Germany)
ㅇ Renewable energy expansion led by local residents
ㅇEffective design of a profit sharing system for local residents’ participation
ㅇRealization of energy democracy by guaranteeing the resident participation process
Ⅳ. Rural Solar Power Supply Problems and Improvement Plans
1. Government renewable energy policy trends and directions
The government’s 3020 Renewable Energy Implementation Plan
ㅇ To achieve the 3020 Renewable Energy Implementation Plan, the targets have been set by dividing it into a national participation-type power generation project and a large-scale project. The Public Participation Type plans to install 2.4 GW for private use such as houses and buildings, 7.5 GW for small businesses such as cooperatives, and 10.0 GW for solar farmhouses, and 28.8 GW for large-scale projects.
ㅇ The Ministry of Agriculture, Food and Rural Affairs, the local government, and the Ministry of Industry are recommended to install 10 GW of solar power in salt farms (inside the Agricultural Promotion Zone) and agricultural areas other than the Agricultural Promotion Zone by 2030.
Policy improvement to promote 3020 Renewable Energy Implementation Plan
ㅇ The government reintroduced the FIT, which was suspended in 2011, to reduce farmland conservation contributions by 50% for rural solar power plants.
ㅇ For projects of over 1 MW with 5 or more farmers who have been registered as residents for more than 1 year within a radius of 1 km from the power plant and with external investors, when the local residents participation is above a certain percentage, weight is given (2% or more of total project cost, 10% or more of total project cost, 4% or more of total project cost) 20%, and the government also plans to assign a weight of 20% when 5 or more farmers participate without external investors.
Rural solar expansion support policy
ㅇ The Korea Energy Agency provides policy funding (1.75%, 5 years, 10 years installment payment) for rural solar facility fund, giving preference to REC weighting and fixed price contract of competitive bidding.
ㅇ A single power plant type, a 2-4 person joint type, and a combined power plant model of 5 or more are presented, allowing unlimited access to rural solar power systems under 1 MW, and shortening the period required for grid connection.
2. Rural PV environmental issues and improvement measures
Expected environmental impact of rural solar power
ㅇ Environmental impact
- Soil leakage and damage to agricultural lands due to removal of topsoil
ㅇ Landscape impact
- Damage to rural landscape resources
Domestic and abroad solar power generation guidelines
ㅇ Domestic land solar power guidelines
- Current guideline is based on the site criteria focused on solar power generation in mountainous area, and it is due to the current farmland related policy that solar power can not be installed in the Agricultural Promotion Zone.
3. Rural PV technical issues and improvement plans
Technical issues and implications of the installation and operation of inland solar power
ㅇ Depending on the technical aspects of the construction type (general fixed type, variable), international installation cost, and grid system connection, there will be differences in costs and profits, the degree of environmental impact, and regional distribution.
4. Rural solar power issues and implications
Changes in regulations of solar power installation on farmland
ㅇ Initially, solar power facilities were not permitted in the agricultural promotion area, but the Farmland Act was revised in 2008, allowing solar power facilities for the first time.
ㅇ Recently, the farmland diversion to install solar power facilities has rapidly increased.
Is it possible to install solar facilities under the Farmland Act
ㅇ Installation of solar power facilities in a temporary use form for 20 years is allowed only in a farmland with a salinity of a certain level or higher (i.e., salt reclamation sites), that is developed through the public water reclamation pursuant to Article 2 of the Act on the Management and Reclamation of Public Waters pursuant to subparagraph 4, Paragraph 1, Article 36 of the Farmland Act (January 2018, revised to permit temporary use of farmland)
Rural solar power policy of Japan
ㅇ As of 2016, Japan’s farmland area was 4.47 million ha, which is about 2.6 times larger than that of Korea, but the farmland diversion for solar power facilities in Korea is more than twice that of Japan.
ㅇ In Japan, temporary farming permits (recently extended from 3 years to 10 years) are limited to farm-type solar power in agricultural lands (Agricultural Promotion Zones in Korea).
5. Rural solar power economic issues
Rural solar and farming solar cost and income estimation
ㅇ Cost and income of general rural solar and farming solar energy are calculated by taking into account initial investment and construction costs and operating costs and the income from electricity sales produced by solar power generation.
ㅇ Expecting changes in power sales prices, interest on loans, system linkage costs, discount rate, etc. in consideration of uncertain external factors
6. Social issues and improvements of rural solar power
Estimation of farmers’ stance of rural solar power
ㅇ Interest in solar power and intention to install
- Farmers’ interest in rural solar power projects is high (53.1% high (very high + high), 34.9% average, and 12.0% low (none + almost none)).
ㅇ Implications of farmers’ stance related to rural solar power
- In the case of farmers who do not intend to install, ‘excessive installation cost’ was surveyed as the main reason.
- 43.0% of farmers objected to farmland being used for the purpose of solar power generation facilities, but 42.1% of the farmers agreed to install solar power facilities.
Conflict and improvement of rural solar power
ㅇ Conflict status of rural solar power
-Residents oppose by raising concerns of landscape deterioration, electromagnetic and crop damage caused by reflection, heavy metals, and waste.
ㅇ Request of the rural society
- From the planning stage, it is necessary to communicate and share information with local residents, to adopt a profit sharing method of resident participation, and to suggest various ways of resident participation.
Local and renewable energy Win-Win Plan
ㅇ Direct operation
ㅇ Share investment
ㅇ Solar power fund
ㅇ Local development fund or compensation
Ⅴ. Conclusion and Suggestions
Transparent information disclosure and related energy policy improvement
ㅇ In order to secure the effectiveness of the renewable energy site planning system, it is necessary to provide practical authorization and institutional supplementation to strengthen the capacity of local governments.
ㅇ To secure residents’ acceptance, transparent information disclosure and sharing from the beginning of the plan are essential.
ㅇ In the site planning system, it is necessary to clearly distinguish the roles and authorities between the regional governments and the local governments.
Distributing practical resident-led solar power business model
ㅇThe policy should be improved at the same time so that the local government can lead and promote the residents-led solar power generation project.
ㅇ Criteria for residents’ participation need to be refined because it is very rough.
ㅇ In addition to expanding residents’ participation, there should also be a plan to support socially vulnerable people who do not have the investment capacity.
Improving related policies for distributing rural solar power
ㅇ Need to supply farming solar power through temporary farmland diversion
ㅇInstitutional arrangements to prevent excessive farmland diversion for solar power development
ㅇ Providing support measures for ‘excessive installation cost’, which is an obstacle for farmers to participate in solar power generation projects