Is the renewable portfolio standard an effective energy policy?: Early evidence from South Korea

• Evaluation of the Renewable Energy Portfolio Standard (RPS) and comparison with Feed-in Tariffs (FIT) in South Korea.
• RPS strengthens market growth of renewable energy sources.
• Fast growth of bio-mass and solar PV under the RPS.
• High market risks under RPS for small and medium companies.

This study provides preliminary evaluation of South Korea's Renewable Energy Portfolio Standard (RPS) apropos capacity growth, technological innovation, cost impact, and market risk, compared to Feed-in Tariffs (FITs). Findings indicate that both effectively expand electricity generation from renewable energy sources (RES-Es). Early evidence suggests that the RPS appears to have further strengthened RES-Es' market growth, particularly biomass and solar PV. For most technologies, policy costs appear higher under the RPS than FITs, except for PV and fuel cells. Under the RPS, higher market risks are a major concern, particularly for smaller suppliers in the PV market, despite growing PV capacity.