[Agency for Natural Resources and Energy] FIT/FIP subsidies suspended for solar power generation projects found to be in violation of relevant laws and regulations!

2024/12/02

The Agency for Natural Resources and Energy announced the temporary suspension of FIT/FIR subsidies, which were newly established in the revised Renewable Energy Special Measures Act that came into effect in April 2024. This will be the third time the measure has been implemented.

On November 25, 2024, the Agency for Natural Resources and Energy announced the suspension of FIT/FIR subsidies for solar power generation projects that were found to be in violation of relevant laws and regulations. The following 19 cases and 12 businesses were subject to the suspension this time (business names not disclosed). In addition, of the nine solar power generation projects for which the suspension was announced on April 2, 2024, it was confirmed that the violations had been resolved for two of them, and so the lifting of the suspension was announced on November 25, 2024.

Target of measures

1 ) Land development at the site of the power generation facility is in violation of the Land Filling Regulation Act, such as not taking necessary measures to prevent disasters (violating the provisions of the Land Development Regulation Act before its amendment, which is still governed by the provisions of Article 2, Paragraph 2 of the Supplementary Provisions of the Act amending the Land Development Regulation Act). (1 case/1 business)

② Land development without obtaining forest development permission under the Forest Law, or land development in violation of the conditions attached to the forest development permission (2 cases/2 businesses)

3) For agricultural solar power generation businesses, the equipment was not removed even after the expiration of the temporary conversion permission under the Agricultural Land Act, or the solar power generation equipment was installed without obtaining the temporary conversion permission (14 cases/7 businesses).

4) Although obtaining permission to convert farmland into agricultural land and installing agricultural solar power generation equipment is a condition for certification under the Renewable Energy Special Measures Act, this condition has not been met and solar power generation equipment has been installed by a method other than agricultural solar power generation and power generation business has commenced, thus violating the conditions for certification under the Renewable Energy Special Measures Act (2 cases/2 businesses).

The revised Renewable Energy Special Measures Act, which came into force in April 2024, introduced a new measure to temporarily suspend FIT/FIP subsidies to encourage businesses violating relevant laws and regulations to quickly resolve their violations from the perspective of regional coexistence. On April 2, 2024, this measure was implemented on solar power generation businesses that clearly violated the Forestry Act (a total of nine cases), and on August 5, this measure was implemented on agricultural solar power generation businesses that were found to have violated the Agricultural Land Act and other inappropriate reasons (a total of 342 cases). This is the third measure to be implemented following those two.

The Agency for Natural Resources and Energy stated, "We will continue to work with relevant government ministries and local governments to take strict measures against businesses and others found to be in violation of relevant laws and regulations, including temporarily suspending FIT/FIP subsidies, in order to promote the introduction of renewable energy that coexists with local communities."