Renewable energy subsidies increase 77-fold in 12 years

The Korea Development Institute (KDI) analyzed that the financial burden caused by subsidies for Renewable Energy Certificates (RECs) has increased 77fold over the past 12 years. The report explained that annual settlements for large power generators rose from 58.7 billion won in 2013 to 450 trillion won in 2025, and that cumulative subsidies have reached 28 trillion won. The researchers concluded that it is difficult to improve the efficiency of renewable energy deployment through the current subsidycentered policy alone, and suggested that expansion of transmission networks and storage facilities is necessary. They also proposed measures such as differentiated electricity rates by region, easing regulations on private Power Purchase Agreements (PPAs), expanding policy financing support, and introducing longterm contracts based on competitive bidding. The report pointed out that the expansion of renewable energy production is not being sufficiently translated into efficient outcomes due to a lack of transmission infrastructure and price volatility. It also found that achieving the government's 2030 power generation capacity target would require a much faster deployment pace than at present.