95% of Solar Income Villages Conditionally Selected: When Will Solar Power Generation Begin?

[OBC News = Gyeonggi] According to reports, 95% of the villages selected for the government's Sunshine Income Village project, which aims to create a new source of income for rural residents, have received conditional approval. While the project supports residents in forming cooperatives to share the profits from solar power generation, issues such as securing land for power generation facilities, funding plans, and grid connection remain, necessitating additional procedures before actual power generation projects can commence.

According to the results of the second public solicitation for the Sunshine Income Village project, announced by the Ministry of the Interior and Safety on October 7, 436 out of 608 villages that applied nationwide were selected. Among these, only 23 villages met all project requirements, such as forming cooperatives, securing land, and establishing funding plans, allowing for rapid implementation. The remaining 413 villages were conditionally selected, requiring them to address certain deficiencies.

The rate of conditional selection reached 94.7%. 160 villages were advised to reapply in the next round due to insufficient preparation, while 12 villages either withdrew their applications or were excluded from the evaluation process.

In Gyeonggi Province, 9 out of 13 villages that applied in the first solicitation and 25 out of 60 villages in the second solicitation were selected. Although 34 villages were selected across both rounds, it is not possible to determine from the publicly available national data how many of these have completed construction preparations or resolved grid connection issues.

The Sunshine Income Village project involves residents forming cooperatives or similar entities to own and operate solar power facilities, using the revenue from electricity sales for resident income and village welfare. The government provides financial support for up to 85% of equipment investment costs and assists with permits, land acquisition, and grid connection.

One of the main challenges in implementing the project is connecting to the grid operated by the Korea Electric Power Corporation (KEPCO). Even if a power generation permit is obtained or land is secured, it is difficult to transmit the generated electricity if nearby substations and distribution lines lack spare capacity. If grid reinforcement is required, the start of power generation may also be delayed.

The government acknowledges these constraints. In response to criticism regarding the high rate of conditional selection for Sunshine Income Villages in October, the Ministry of the Interior and Safety explained that it conditionally selected villages where certain procedures, such as land negotiations and grid connection, are still in progress, and is supporting them to address deficiencies in cooperation with relevant agencies.

The government plans to implement a system starting December 16 that allows priority grid access for certain public-benefit, resident-participation renewable energy projects with an installed capacity of 1MW or less. This measure is based on the revised Electric Business Act and the Special Act on the Promotion of Distributed Energy, both amended in September.

However, priority grid access is a system that grants preferential connection order to projects that meet certain criteria. It does not mean that the physical capacity of the power grid will increase immediately, nor that all community-participation power plants will be automatically connected. The actual timing of grid connection is influenced by factors such as the location and generation capacity of individual power plants, as well as the available line capacity.

The government plans to support the installation of energy storage systems (ESS) in areas with insufficient grid capacity and to strengthen transmission and distribution networks. However, ESS support also requires a review of installation costs and operating conditions, and its effectiveness may vary depending on the grid connection conditions of each village.

For the 34 villages selected in Gyeonggi Province, there are still procedures remaining before actual generation revenue can be distributed to residents, including individual project permits, financial procurement, and grid interconnection. The number of selected villages and the number of power plants actually in operation should be evaluated separately.

The Ministry of the Interior and Safety conducted the third round of the Sunshine Income Village public solicitation from September 17 to October 30, and the final selection results are scheduled to be announced at the end of December. Prior to that, the extent to which the grid priority access system, which takes effect on December 16, will be applied to the project advancement of previously selected villages remains a key upcoming schedule item.