Korea Power Exchange Launches 2025 Clean Hydrogen Power Generation Auction
Key Ideas
  • The 2025 clean hydrogen power generation bidding market in South Korea aims for a volume of 3,000 GWh/year.
  • In 2024, only 750 GWh of the 6,500 GWh volume was awarded due to high import prices and infrastructure limitations.
  • New changes in the market include a revised settlement price structure, integration of market exchange rates, and a volume borrowing system.
  • The benchmark exchange rate for bidding is set at KRW1,208.87 to US$1, benefiting bid participants with a lower price ceiling requirement.
The Korea Power Exchange recently announced the 2025 auction for clean hydrogen power generation bidding market. This follows the initial launch of the clean hydrogen power generation bidding market a year earlier. The market is segmented into general hydrogen and clean hydrogen categories, with only generators meeting domestic clean hydrogen certification standards allowed to participate. Key points include the 2025 market targeting a volume of 3,000 GWh/year, challenges faced in the previous year due to high clean hydrogen import prices and infrastructure limitations, and changes in the settlement price structure to mitigate foreign exchange risks for power generation companies. Additionally, a benchmark exchange rate and a volume borrowing system have been introduced to enhance market dynamics and flexibility. These developments aim to encourage more participation and efficiency in the clean hydrogen power generation bidding market.
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