Paju City launches South Korea's first public renewable energy PPA model

Paju City has launched South Korea’s first public renewable energy direct power purchase agreement (PPA) model. The city recently inaugurated its first public renewable energy power plant at the Munsan Water Treatment Plant, featuring a solar power facility with a capacity of 1,148kW.

Under this new model, the electricity produced will be supplied directly to seven local small and medium-sized enterprises (SMEs) at a rate of 130 KRW per kWh. This rate is noted as one of the lowest for direct PPAs in the country. The project aims to help local businesses meet RE100 requirements and overcome international trade barriers related to renewable energy usage.

By utilizing public land and managing administrative procedures directly, the city has reduced costs. The Paju Urban Corporation will participate in the operation and supply of electricity. The agreement includes a 30-year fixed price to protect participating companies from price volatility. Paju City plans to expand this initiative by developing additional power plants on underutilized public land, such as roadside slopes and bicycle paths.