Korea to cut daytime industrial power rates to boost solar use

The South Korean government plans to overhaul the industrial electricity pricing system in the first quarter, lowering rates during daytime hours and raising them at night.

The move is aimed at encouraging demand during the day, when solar power generation is strong.

The Ministry of Climate, Energy and Environment said on Sunday that the changes were included in its 2026 energy transition policy roadmap.

As part of efforts to address off-peak power oversupply, the ministry is expected to announce a revised time-of-use pricing scheme for industrial users later this month.

Off-peak periods typically occur in spring and autumn, when electricity demand is low but power generation is high, often resulting in oversupply.

Favorable weather during these periods boosts renewable output, but excess supply can strain grid stability, leading to more frequent curtailment of solar generation.

The ministry said lowering daytime rates would help absorb surplus renewable power that would otherwise be wasted. Currently, nighttime industrial electricity rates are lower than daytime rates.

The ministry also plans to propose the introduction of regionally differentiated electricity pricing this year.

Under the system, rates would be lower in regions with abundant power generation and higher in areas with less supply. While the initial plan focused on wholesale prices, the government is now expected to seek differentiation across both wholesale and retail rates by year-end.

Further power market reforms are also planned for this year. In the first quarter, the ministry will introduce a quasi-centralized resource scheme for renewable energy, allowing output to be adjusted flexibly during off-peak periods in return for compensation.

It also plans to expand a renewable energy price-bidding system, currently operating on Jeju Island, to the mainland to allow renewable output to be set through the power market.

To meet a target of 100 gigawatts of renewable energy capacity by 2030, the government will accelerate the rollout of solar power.

This year, it plans to install solar panels at 50 traditional markets and more than 1,500 parking lots. Solar installations at schools will begin with 500 schools this year and expand to more than 6,400 schools by 2030.