(SEOUL=Yonhap News) The Korean government has decided to ease 7 main regulations related to new energy industries.
The change is expected to generate positive effects worth KRW 560 billion in investments.
The Ministry of Trade, Industry and Energy announced Mar. 2 that following the 11th Trade Investment Promotion Meeting held last 27 it has settled on 7 measures to improve new energy industry regulations.
Previously, a significant number of local governments had introduced legislation that restricted the installation of renewable energy facilities such as solar photovoltaic (PV) systems to be at least 100 to 1,500 meters away from roads or residential areas.
The intent had been to minimize complaints by residents about noises or light emitted from the renewable energy facilities, but the inflexible distance restrictions had failed to take into consideration the local environment or circumstances, and instead made it more difficult for companies to operate.
The government has thus sent local governments a new set of guidelines, specifying that the distance regulations be repealed in principle, or reset to a maximum distance of 100 meters, and is set to begin a comprehensive follow-up on its implementation this month.
The new guidelines are expected to enable the initiation of some 210 solar PV projects (worth around KRW 115 billion) that have been pending.
Farming households that participate in solar PV projects will receive a 50 percent reduction in their farmland conservation fee.
Based on a earlier demand survey, farming households showed great interest and favorable responses, with 288 households nationwide applying to install a solar PV system on their land, but many were still reluctant as they would have to pay a farmland conservation fee worth 30 percent of the official land value.
The government has therefore decided to amend the Enforcement Decree of the Farmland Act, and lower the fee by 50 percent for those who install solar PV systems on farmlands outside Agricultural Development Regions.
For wind power projects, if the ecological rating rises to a higher grade level during development, the deadline to file an objection has been extended from 15 days to 45 days, giving companies plenty of time to clarify their circumstances.
Also, by categorizing renewable energy projects as low-risk investments in social overhead capital (SOC), the government hopes to help insurance businesses secure KRW 420 billion to invest in renewable energy.
The decision was based on the widespread notion that unlike roads or coastal ports, renewable energy projects are high-risk investments.
In addition, by allowing one safety manager to be in charge of multiple power stations, as opposed to current restrictions that require one safety manager per station, the government intends to reduce the financial burden on providers of charging services.
The government also plans to establish a foundation for power distributors to install energy storage systems, and clarify reverse power relay installation regulations to minimize on-site confusion.
Through such measures to improve regulations, the government expects to see KRW 560 billion in investments and KRW 11 billion in costs saved as a result.
According to a trade ministry source, "Since the measures to promote the supply of renewable energy was announced last Nov., 12 new renewable energy projects have signed fixed long-term provisional contracts," adding, "the recent deregulation measures are expected to accelerate the supply of renewable energy sources."
eun@yna.co.kr
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Source: Yonhap News (Mar. 2, 2017)