This year, the 'clean hydrogen power generation bidding market' was opened. The target bidding volume is 3000 GWh, which is half of last year's target (6500 GWh). The government opened the clean hydrogen power generation bidding market for the first time in the world last year, but due to issues with the generation price, it only secured 11.5% of the target generation amount. As a result, it was criticized for failing to attract interest.
The hydrogen power generation bidding market is a system that allows the purchase of electricity generated using hydrogen or hydrogen compounds as fuel. It is divided into clean hydrogen power generation and general hydrogen power generation, with the clean hydrogen power generation bidding market aiming to reduce greenhouse gas emissions through the use of carbon-free fuel, clean hydrogen. Only power generation facilities using fuel that meets the domestic clean hydrogen certification standards (greenhouse gas emissions of 4 kg CO₂e or less per 1 kg of hydrogen) can participate.
This year, the volume of the clean hydrogen power generation bidding market is 3000 GWh, and the transaction period is 15 years. Power generation companies must begin generation by 2029 after a business preparation period. The government will comprehensively evaluate not only the generation price (price indicator) but also non-price indicators such as the grade of clean hydrogen utilization, fuel import stability, and industrial and economic contribution, to select the final bidder around November.
This year, the 'exchange rate-linked settlement system' and the 'volume borrowing system,' which the industry has continuously demanded, will be newly introduced. Previously, the settlement method was conducted at a fixed price in won, placing the full risk of fluctuations in the won-dollar exchange rate on the business operators. However, starting this year, an exchange rate-linked generation price will be applied, reflecting the exchange rate at the time of settlement, which is expected to alleviate the risk of exchange rate fluctuations.
Additionally, along with the existing volume carryover system, a 'volume borrowing system' that allows for the early use of the next year's volume will be introduced. This is expected to enable a more flexible response in cases where the contracted generation volume is not met due to unavoidable reasons.
Meanwhile, the main purpose of the general hydrogen power generation bidding market is to promote the installation of distributed generation sources. This year's bidding volume is 1300 GWh, and the transaction period is 20 years. After a two-year business preparation period, generation must begin by 2027, and the final bidder will be selected in August, considering non-price indicators such as the price indicator, impact on the power system, and industrial and economic contribution.