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South Korea’s six power generating subsidiaries of state-run Korea Electric Power Corp. (KEPCO) will invest combined 3.7 trillion won ($3.06 billion) in the renewable energy business from 2017 to 2018 to assist the government campaign to boost use of renewable energy.
The Ministry of Trade, Industry and Energy announced Tuesday that Korea Hydro & Nuclear Power, Korea South-East Power, Korea Midland Power, Korea Western Power, Korea Southern Power and Korea East-West Power - six power generation units of Kepco - will together invest 3.7 trillion won in exploring renewable energy sources and developing related facilities in the country. The figure is three times more than 1.1 trillion won investment made over the last two years in the country, it added. The ministry announced the plan at the Renewable Energy Business Investment Forum held in Seoul.
The six power generation firms will allocate 38.6 percent of their investment in solar energy, 35 percent in wind power, 17.9 percent in fuel cells and 8.5 percent in others, according to the ministry.
The government earlier announced its plan to increase the share of investment in solar and wind power generation to more than 72 percent by 2025, the same level of that of advanced countries.
The renewable energy project will be conducted through a special purpose company to ensure investment reliability and induce private sector investments.
At the forum, a memorandum of understanding was signed for successful fund raising for the 500 billion won worth wind power generation business in Yeonggwang, South Jeolla Province and hydrogen fuel cell business in Daesan, South Chungcheong Province that Korea East-West Power and private companies are pushing ahead with.
Yeonggwang wind power complex will provide 155.5 gigawatt-hour (GWh) electricity per annum through its land facility with 45.1 megawatt (MW) capacity and ocean facility with 34.5MW capacity. Daesan fuel cell project will develop 50MW fuel cells by utilizing byproduct hydrogen from Hanwha Total Petrochemical Co.’s Daesan factory. It is the first fuel cell development project that uses byproduct hydrogen instead of typical liquid natural gas (LNG) in the country.
The ministry also announced the government will boost the use of renewable energy in the nation’s entire power generation to 11 percent by 2025 by encouraging public power generating firms to increase investment in renewable energy.
“If the public investment leads to private sector investments, we would be able to catch up with advance countries where the use of renewable energy is already high,” said trade and energy minister Joo Hyung-hwan.
By Seo Dong-cheol
Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.
Source: Pulse by Maeil Business News Korea (Dec. 27, 2016)