Gyeongsangnam-do selects 34 villages for 'Sunshine Income' solar projects
Gyeongsangnam-do announced the selection of 34 villages across 13 cities/counties in the second public contest for the sunshine income village Creation Project'. These projects will install 32 MW of solar capacity with a total budget of 47.2 billion KRW, aiming to generate community income by year-end 2026.
Our take
How is Gyeongsangnam-do expanding community-led solar and addressing grid constraints?
Gyeongsangnam-do's initiative to expand community-led solar projects, with 41 villages selected and 32 MW capacity in the second round, faces a significant hurdle as 59% of these projects are constrained by Korea Electric Power Corporation's grid capacity, necessitating substantial infrastructure upgrades.
This program aims to decentralize energy generation and share profits locally, but the widespread grid capacity limitations directly impact project viability and revenue generation for these distributed energy resources. Without grid reinforcement or expanded national funding for distribution-level ESS, a large portion of the selected solar projects will struggle to connect and sell power, shifting the risk of delayed or unfeasible projects onto the local communities and the provincial government.
What the source says
- The sunshine income village model allows villages to install 300kW-1,000kW solar facilities on idle land and use electricity sales profits for resident welfare and community projects.
- Projects under the sunshine income village model can receive financial support covering up to 85% of solar installation costs.
- Five villages (Changwon Geungok, Jinju Indam, Miryang Jungsan-ri/Ungdong-ri, Haman Bunam) from the second contest meet all project requirements (cooperative, grid, site, funding) and will immediately begin licensing procedures.
- A total of 41 villages across 14 cities/counties have been selected through the first and second public contests.
- Three villages selected in the first contest (Jinju, Gimhae, Miryang) are currently under construction, targeting completion by the end of 2026.
- 59% of the total selected villages (from both 1st and 2nd contests) face difficulties in proceeding due to insufficient grid capacity from Korea Electric Power Corporation (KEPCO), requiring grid reinforcement.
- Kwon Dae-hyeok Kwon Dae-hyeok, Head of Gyeongsangnam-do Energy Industry Division, stated that Gyeongsangnam-do will actively support licensing and project requirements for selected villages and continue to propose grid expansion and government support to address grid issues.
For investors — Investors in Korean DERs should assess the local grid infrastructure and the potential for delays or additional costs related to grid connection, particularly in regions with high DER penetration. Opportunities may arise in projects that include integrated ESS or benefit from government-backed grid reinforcement initiatives.
Watch: Gyeongsangnam-do's formal proposal to the central government for expanded grid infrastructure and national funding for distribution ESS projects.
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