Completion ceremony held at Munsan water treatment plant
Paju becomes first local government nationwide to supply public-site renewable energy directly to local SMEs
Paju has become the first local government in South Korea to launch a public energy model that supplies renewable energy generated on public land directly to local small and medium-sized enterprises.
The city held a completion ceremony Wednesday for its "Paju Public Renewable Energy Plant No. 1" at the Munsan water treatment plant. About 50 people attended, including Paju Mayor Son Bae-chan and representatives of companies that will receive the power.
Built on the grounds of the Munsan water treatment plant, the facility is a solar power installation with a capacity of 1,148 kilowatts. The electricity it generates will be supplied directly to seven SMEs in Paju through power purchase agreements (PPAs).
The seven recipient companies are Samsung Special Brake, Seonil Safe Manufacturing, Spacetalk, Shindo Industry, C&C, Hanul Saengyak and Hyeonjin.
The supply rate was set at 130 won per kilowatt-hour — among the lowest for direct PPAs in South Korea. The rate comes as the Ministry of Climate, Environment and Energy announced at a presidential briefing Aug. 4 that it aims to bring solar power generation costs below 150 won per kilowatt-hour.
The competitive pricing stems from the use of public land, which reduced site costs, and from the city handling resident complaints and administrative procedures in-house, lowering overall project expenses. Paju Urban Corporation, a local public enterprise, also participates in plant operations and power supply, creating a structure in which the benefits of public renewable energy flow directly into business competitiveness and local economic activity.
A fixed price will apply for the full 30-year supply period, shielding participating companies from electricity cost fluctuations and price volatility while enabling them to reliably meet overseas clients' demands for renewable energy use.
The project marks a significant departure from the conventional model in which public institutions sell solar-generated electricity to Korea Electric Power Corporation. Instead, Paju supplies the power directly to local businesses, allowing it to count toward their renewable energy usage records. The initiative is expected to serve as a new public energy model supporting companies in meeting their RE100 commitments and clearing renewable energy-related trade barriers.
"This first public renewable energy plant is a meaningful starting point — one that connects power generated by local government to the competitiveness of local businesses and realizes a Greater Seoul-style local production for local consumption model," Mayor Son said. "We will firmly support companies in the city in fulfilling their RE100 commitments and removing trade barriers, and we will continue to expand a public renewable energy system that delivers real benefits to businesses and residents alike."
Paju plans to identify underused public land — including road embankments and bicycle paths — to develop public renewable energy plants No. 2, 3 and 4 in sequence, and to expand support for local businesses that need renewable energy.
pjh@heraldcorp.com
