KEPCO Recovers 9GW of Grid Capacity from Delayed DER Projects
Korean Electric Power Corporation (KEPCO) has recovered 9.03 GW of grid connection capacity from 226 delayed or phantom power generation projects since April 2024, aiming to address 'grid squatting'.
Our take
How is Korea addressing grid capacity hoarding by delayed distributed energy projects?
KEPCO's recovery of 9.03 GW of grid capacity from inactive projects, particularly concentrated in the Honam and Yeongnam regions, directly addresses the issue of grid congestion and limited access for legitimate renewable energy developers.
KEPCO's enforcement of its Transmission and Distribution Grid Use Regulations by recovering capacity from non-performing projects is a direct response to the grid squatting problem. This mechanism aims to free up scarce grid resources, particularly in renewable-rich areas, by penalizing speculative capacity reservations. However, the current inspection schedule, which allows a full year before the first review, still permits a significant delay, prompting calls for stricter upfront verification and earlier recovery to more efficiently reallocate capacity to active projects.
What the source says
- Korean Electric Power Corporation (KEPCO) conducts an initial inspection one year after a grid use contract is signed, and then annually, to verify project progress.
- KEPCO recovers grid capacity if a developer fails to submit proof of project progress, such as site ownership or permits, within 30 days of request.
- Rep. Lee Heon-seung stated that delayed or phantom projects have been preempting grid capacity while actual developers await connection.
- Rep. Lee Heon-seung urged KEPCO to strengthen management standards by strictly verifying project feasibility and permits at the contract stage.
- Rep. Lee Heon-seung recommended that KEPCO recover capacity earlier from long-delayed projects and reallocate it quickly to subsequent developers.
- KEPCO began recovering grid capacity from delayed or phantom projects after April 2024.
- KEPCO reallocated approximately 3.90 GW of recovered grid capacity to subsequent developers after November 2024.
For investors — For investors and operators in Korean DER, KEPCO's actions mean increased competition for available grid capacity but also a clearer path for genuinely viable projects to secure connections, especially in high-demand regions like Honam and Yeongnam. Projects with solid development plans and permits will benefit from the reallocation of previously hoarded capacity.
Watch: Monitoring KEPCO's future announcements regarding **stricter enforcement or amendments to the Transmission and Distribution Grid Use Regulations**, particularly concerning initial verification and earlier capacity recovery.
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