Solar energy

    Solar energyAjin solartec Co.,Ltd. Considers the nature as it is,

    What is solar energy generation business?
    Through solar energy transformation and electricity generation, it brings about sales income, related to governmental new renewable energy policy encouragement of an eco-friendly energy business.
    Main features
    1) Governmental new renewal energy policy : ‘RPS(Renewable Energy Portfolio Standard)’ RSP rules that some electricity generation businessmen who hold the capacity of over 500MW generation equipment have an obligation to allot their generation supply ratio to a certain * 18 supply obligators as of the year, 2017
    2) Stable earnings solar energy generation business has a potential to make long term benefits expected from one time equipment investment, considering solar energy generation equipment's life spanned to 30 from 20 years.
    Also, solar energy generation businessmen can gain SMP benefits of electricity sales to KEPCO after generation, along with REC's one which can be available after sales to obligatory suppliers upon additional issuance of it.
    Thus, solar energy generation businessmen benefit both SMP and REC. For your reference, REC is abbreviated from Renewable Energy Certificate and SMP is System Marginal Price.
    ㆍ REC : Renewalbe Energy Certificate
    ㆍ SMP : System Marginal Price
    3) Environment-friendly energy Solar energy generation business puts its consideration on environmental friendliness, having an effect on planting of 485 trees and lessening of CO2 by over 8 .8 millions annually, in case of 100KW-sized solar energy plant.
    New renewable energy supply obligation rule(RPS)
    Implementation ㆍ New renewable energy supply obligation rule(RPS) Effective from the 1st. Jan, 2012
    Definition ㆍ Obligatory rule on allotments of new renewable energy to a certain ratio against the total.
    Supply obligator ㆍ Capacity holder of over 500MW in the total generation equipments (총18개사. 2017년)
    18 power plants: KHNP, Korea South-East Power Co.Ltd., KOMIPO, Korea Western Power Co., Ltd., Korea Southern Power Co.,Ltd.,
    EWP, Korea District Heating Corporation, K-water, SK E&S, GS EPS
    New renewable supply certificate(REC) - Issued in a unit of Mwh after multiplication of weight to the electric power supplied by supply certificate issuance equipment.
    - Power generation businessmen's certificate of electricity production and supply by new renewable energy equipment.
    - Supply obligator's supplement with new renewable energy supply certificate for his obligation.
    [Issuance method] REC issued by traded electric power's multiplication to weight and its' division by 1000KWh. Decimal places added up after carried forward.
    New renewable energy supply certificate weight
    Classification Supply certificate weight Criterion
    Type Supply certificate weight
    Solar energy 1.2 Normal site less than 100KW
    1.0 from 100KW
    0.7 more than 3,000KW
    1.5 The existing building less than 3,000KW
    1.0 more than 3,000KW
    1.5 Water surface floating
    Annual supply obligation(unit %, 1,000 REC)
    The year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
    Ratio 2.0 2.5 3.0 3.0 3.5 4.0 5.0 6.0 7.0 8.0 9.0 10.0
    Supply obligation 6,420 9,210 11,577 12,375 15,081 17,043            
    RSP rule participation process
    Power generation business approval Power plant completion Pre-inspection Power supply and demand contract conclusion Power generation business initiation RPS equipment check Supply certificate issuance and trade
    Less than 3MW: local government More than 3MW: electricity committee Power plant completion, based on electricity business law KESCO KPX but KEPCO is also available for less than 1MW contract. Local government business initiation report New and Renewable Energy center report within 1 month after
    Issuance: New and Renewable Energy center Trade: KPX
    Eearnings calculation method
    Annual forecast production(exemplification): ㆍ Yearly solar energy average production time: 3.6 hours
    ㆍ 100kw is one hour capacity. Daily poduction capacity is 360kw, based on 3.6 hours.
    ㆍ Annual power generation forecast calculation: 360kw x 365 days = 131,400kw
    SMP earnings calculation ㆍ SMP earnings can be made by calculation with commercial power supply unit price of KEPCO and monthly power generation.
    ㆍ SMP unit price can be varied hourly. For the current market conditions, it's about 70 or 80 Korean won per kw. 9,855,000 Korean won is calculated with an average 75 Korean won and annual production 1,311,400kw.
    REC earnings calculation ㆍ REC is issued right after equipment ascertianment and 1REC is 1,000kw..
    ㆍ For REC spot trading, followed by the present market conditions of 125, 000 Korean won. 125 Korean won is calculated per 1kw.
    ㆍ REC weight is applied for the electric power generation in REC. For the further REC weight, the following diagrame can be referred.
    New renewable energy supply certificate weight
    Classification Capacity REC weight Remarks
    Normal site less than 100kw 1.2  
    from 100kw to 3MW 1.0  
    More than 3MW 0.7  
    Building top 1.5 after one year of mushroom culture in case of mushroom company
    Parking lot 1.5  
    Water surface 1.5  
    ESS 5.0 2016 and 2017 year application / 2018 year weight ratio adjustment
    Expected return can be calculated as below.
    Weight 1.5 ㆍ131,400kw x 1.5(REC weight) x 125 Korean won= 24,637,500 Korean won
    Weight 1.2 ㆍ 131,400kw x 1.2(REC weight) x 125 Korean won= 19,710,000 Korean won
    Actual solar energy generation earnings depend upon power generation according to trading time's REC and SMP unit price, generation time, and its efficiency.
    It's recommended to have a reference on the above information because the expected return calculation can not be the future's definite earnings
    but a indicator of forecasting the future earning in a degree.
    Earnings structure
    SMP ㆍ System Marginal Price by KEPCO
    REC ㆍ Certifiate price by KEA against 18 supply obligators
    POWER GENERATION BUSINESSMEN ㆍ Those responsible for power generation and sale after RSP equipment installation ascertainment