Paju launches South Korea's first public renewable energy plant for local firms

Paju City has inaugurated South Korea's first public renewable energy power plant, transforming unused land at the Munsan Water Treatment Plant into a source of clean energy for local businesses. The 1,148-kilowatt solar facility will supply electricity to seven small and medium-sized enterprises, including Samsung Special Brake and Sunil Safe Manufacturing.

This innovative "off-site" model allows the city to provide the land and manage administrative procedures, while the Paju Urban Corporation operates the plant. The generated power is then sold directly to the companies via the Korea Electric Power Corporation (KEPCO) grid. This direct power purchase agreement (PPA) guarantees a stable electricity price of 130 won per kilowatt-hour for 30 years, a rate lower than the government's target for solar power generation.

Unlike previous "on-site" direct power transactions, this initiative distributes energy from public land to multiple private companies. Paju City officials highlighted that by utilizing public land and handling administrative processes, they reduced costs associated with land acquisition and permits. Businesses benefit by securing renewable energy at a relatively low price without needing to invest in their own facilities.

Paju City plans to expand this "local land, local source" model by identifying other underutilized public spaces, such as road slopes and bicycle paths, for future renewable energy projects. The initiative aims to bolster the production and export competitiveness of local enterprises by leveraging the region's public assets.

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The companies can be recognized for using renewable energy for the amount of electricity they purchase, and it can be used as proof of RE100 implementation.