updated 2026-10-22
RPS (Renewable Portfolio Standard)
Renewable Portfolio Standard · renewable supply obligation · Renewable Energy Act · New and Renewable Energy Act (former name) · RPS
RPS obliges designated generators and others to supply a share of their generation from renewables. They meet it by generating it themselves or buying RECs.
The legal basis of RPS (Renewable Portfolio Standard) is the 'renewable energy supply obligation' provision of the Renewable Energy Act (formerly the New and Renewable Energy Act). The government can designate, by presidential decree, obligated suppliers among generators and others and require them to supply at least a set amount of their generation from renewables. The annual obligation is set by presidential decree.
Obligated suppliers meet the obligation by building renewable plants and generating, or by buying RECs. Part of the obligation can be deferred within a time limit, and shortfalls incur a penalty surcharge. The RPS operation guideline sets the details; KPX settles the compliance costs and KEPCO recovers them.
News-reading tip: a story about raising or lowering the obligation ratio is really about a change in REC demand, which affects REC prices. Because compliance costs are recovered through KEPCO, the topic also connects to debates about electricity tariffs. Older articles use the name 'new and renewable energy supply obligation'.
The act taking effect in 2027 has the minister run a renewable "contract market" including long-term fixed-price contracts. The supply obligation stays and there is no sunset clause, so the statute alone does not set an "RPS end date".