Korea Rural Community Corporation Shifts Floating Solar Revenue to '3:3:3' Model, Increasing Local Residents' Share

3GW Deployment Targeted at 28 Locations by 2030
Annual Profit of 200 Billion Won Expected Upon Completion
Sustaining Rural Infrastructure Through Balanced Profit-Sharing
Between Residents, Operators, and the Corporation

Korea Rural Community Corporation is seeking to change the way it operates its floating solar power business. The aim is not simply to increase the supply, but to reform the revenue-sharing structure so that power producers, the corporation, and local residents share the profits equally, thereby delivering more benefits to farmers and residents. The corporation plans to develop 3GW of floating solar power capacity by 2030.

According to Korea Rural Community Corporation on October 6, the company’s deployment target by 2030 is 3GW across 28 designated zones. To date, it has deployed 105 megawatts (MW) across 66 reservoirs and freshwater lakes, but this is an ambitious goal to nearly increase its scale thirtyfold. Seongeun Yoon, Director of Rural Energy at the corporation, stated, “Until now, we have developed projects of around 1MW using small reservoirs, but going forward, we will install facilities of over 20MW on large reservoirs and freshwater lakes.” Yoon added, “Of the 28 locations, nine have either already been completed or operators have been selected, and for the remaining 19, we will proceed in a way that balances the interests of local residents, power producers, and the corporation (representing farmers).”

A panoramic view of Saemangeum Sunlight Sharing Floating Solar Power Plant being promoted by the Korea Rural Community Corporation at Saemangeum. Korea Rural Community Corporation

◆ Abandoning the 70% profit structure for operators: Moving to a 3:3:3 model = The corporation is pursuing a new model in which profits are divided equally among local residents, operators, and the corporation, allocating benefits in a 3:3:3 ratio instead of the previous system in which operators kept more than 70% of profits. The intention is to address the excessively high share for power producers by raising the proportions for local residents and the corporation.

The corporation emphasizes that this is not self-interest on the part of the organization. President Kim Injung explained at a press conference at the Saemangeum33 Center in Gimje on September 30, stating, “Our floating solar power project is an investment in resources to sustain rural communities,” adding, “If we develop 3GW by 2030, we will be able to secure profits of about 200 billion won annually.”

The background is a lack of financial resources. The appropriate annual maintenance budget needed for disaster response and infrastructure upkeep, reflecting the site-specific needs of farmers, is approximately 650 billion won. Since the abolition of water fees (agricultural water usage fees) in 1998, the corporation receives around 150 billion won from the national treasury each year, and raises another 280 billion won by selling unused reservoirs, water management channels, and buildings, but there is still a shortfall of 220 billion won. President Kim noted, “When farmers ask for maintenance of water management channels and refurbishment of pumping and drainage stations, we have to say ‘we can’t do it due to budget constraints’,” adding, “This issue has persisted for nearly 15 years, which is why we are seeking to secure resources through floating solar power.”

Floating solar does not damage farmland or mountain areas and utilizes unused surfaces of reservoirs and freshwater lakes. To address concerns over the function and landscape impact of reservoirs, installations are limited to 10% of a reservoir’s surface area and 20% of a freshwater lake, using only materials that meet the sanitation safety standards under the Water Supply Act. Quarterly inspections of reservoirs used for installation over periods of ten years or more have found no water pollution, according to the corporation.

Kim Injoong, President of the Korea Rural Community Corporation, held a press conference at the Saemangeum 33 Center on the 30th of last month to explain the corporation's floating solar power project. Korea Rural Community Corporation

◆ Divergence in business model approach with the Ministry of Climate, as well as uncertainty over assignment of mandatory suppliers = Since early this year, the corporation has been discussing the 3:3:3 model with the Ministry of Climate, Energy and Environment. While the corporation wishes to maintain a “transfer-acquisition” approach, under which a private entity builds and then transfers part of the facility, the ministry insists on a special-purpose company (SPC) structure in which stakeholders jointly invest from the outset and share risk.

President Kim said, “It seems the ministry sees sharing risk from the start as more transparent and fair,” but added, “We still have questions about whether the 3:3:3 model can be carried out in the SPC format.” The SPC method requires large-scale borrowing and investment, and during the 7-8 years it takes to repay these, it may not be possible to use revenues for rural development, which could delay water management channel maintenance and other work.

A draft amendment to the Renewable Energy Enforcement Decree, currently subject to advance notice by the ministry, would allow the designation of public power project operators as mandatory suppliers if their non-renewable generation capacity exceeds 500MW or their renewable energy capacity exceeds 100MW. If so designated, a renewable energy production target would be assigned, and failing to meet this could incur burdens. President Kim flatly stated, “This is not appropriate.”

The supervisory ministry, the Ministry of Agriculture, Food and Rural Affairs, is also opposed. The concern is that the corporation’s core functions—maintaining agricultural infrastructure such as reservoirs, and developing rural areas—could be seriously hindered if it is designated as a mandatory supplier. The Ministry of Agriculture and Food plans to reiterate its official position through the inter-ministerial review process on the lower-level legislation for renewable energy, which runs until November 8.

This content was produced with the assistance of AI translation services.