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Secure Global Competitiveness Based on Excellent Technologies Close

Secure Global Competitiveness Based on Excellent Technologies

According to the Korea Institute of S&T Evaluation and Planning (KISTEP), Korea’s renewable energy technology reached
a level of 86% out of 100%, meaning a technological gap of approximately 10% exists between Korea and other
developed countries (Europe, US, Japan). The photovoltaic industry is growing focused on cell and module manufacturers (Hanwha, LG, etc.), and an export-centered value chain has been established.
The wind power industry has production infrastructure for major components that have high potential for growth
(blades, power converters, etc.) and aims to expand the domestic market and investment and secure global competitiveness by constructing large-scale wind farms. Korean manufacturing companies have acquired hydrogen technologies,
such as hydrogen cars and fuel cells. Global cooperative projects are also under way to expand the production of green hydrogen and expand related infrastructure (transport, storage, charge, sales).

"Korea’s Technical Competitiveness per Renewable Energy Source"

Korea’s Technical Competitiveness per Renewable Energy Source Energy source, Government’s annual investment amount (USD million), Secure technical competitiveness(Technological gap compared to leading countries, Change of technological gap compared to leading countries, Technical level compared to leading countries)
Energy source	Government’s annual investment amount (USD million)¹⁾	Secure technical competitiveness
Energy source	Government’s annual investment amount (USD million)¹⁾	Technological gap compared to leading countries²⁾	Change of technological gap compared to leading countries ³⁾	Technical level compared to leading countries ⁴⁾
Photovoltaic	52.4	Up to 3 years	Decreased less than 1 year compared to 2014	80% or more
Wind	35.9	Over 5 years	Increased compared to 2014	60% or more
Hydrogen	6.1	3 to 5 years	Decreased at least 1 year compared to 2014	70% or more
Fuel cell	25.9	Up to 3 years	Decreased less than 1 year compared to 2014	80% or more
Solar	4.2	Up to 3 years	Decreased less than 1 year compared to 2014	80% or more
Geothermal	5.7	Over 5 years	Decreased at least 1 year compared to 2014	70% or more
Marine	6.8	3 to 5 years	Decreased at least 1 year compared to 2014	60% or more

※ Source: Specific Evaluation Report on Renewable Energy Core Technology Development Projects (KISTEP, July 2018)

① 2013 to 2017, Government’s average annual investment amount, Written requests for project budget (2014 to 2018), KRW-USD conversion applying the average exchange rate of 2018
2016 Technological Level Evaluation (KISTEP, 2017)
2016 Technological Level Evaluation (KISTEP, 2017)
Study on Renewable Energy Technological Level and Introduction of Overseas Technology (KISTEP)

Continuous Growth of Installed Capacity and Power Generation of Renewable Energy Open

Continuous Growth of Installed Capacity and Power Generation of Renewable Energy

According to the Korea Energy Agency, the cumulative installed capacity of renewables in 2019 was 23.2GW (17.7% out of all power generation unit),
up 21.8% YoY. Its proportion of power generation was 9.8%, up 0.9%p YoY.

The energy conversion policy of the current government aims at expanding the eco-friendly energy industry. In 2018, domestic sales of renewable energy reached USD 8.2 billion (KRW 9.33 trillion, up 21.1% YoY) and the number of employees was 35,215 (up 1.8% YoY), showing a continuous growth trend.

Hanwha Solutions, OCI, Shinsung E&G, and Unison have been growing based on the expanding domestic market.
The development plan of large-scale offshore wind farms is expected to expand the wind power industry.

(Unit : Cloth toe)

Renewable Energy Output category, year

※ Source: Korea Energy Agency, Renewable Energy Center “Renewable Energy Distribution Statistics”
※ Announcement of statistics: November in the year follows the study year (final announcement)
※ Footnote: * Round off the numbers to the nearest hundredths; Figures may differ from data from KOSIS, etc.
※ Footnote : Check 2018 Renewable Energy Distribution Statistics (published in 2019) for details.

e-Nation Indicator Shortcuts
More Global Photovoltaic and Wind Power Companies Enter Korea Open

More Global Photovoltaic and Wind Power Companies Enter Korea

Recently, companies from Japan, Germany, Spain, and China have opened corporations in Korea to enter the photovoltaic and wind power industries.
Major companies from Europe and North America are preparing to establish their corporations in Korea to join offshore wind farm projects through power generation subsidiaries, local governments, or Korean companies.

Macquarie Capital, a multinational investing company, signed an MOU with Gyeongbuk Floating Offshore Wind Power to invest in the floating offshore wind farm in Ulsan in May 2018.
Influx from Japan and JA Solar from China have invested in the Saemangeum Renewable Energy Cluster and broken ground for factories.
Orsted, a state-owned energy company of Denmark, opened its second Asian-Pacific office in Korea to enter the Korean wind power industry.

"Global Companies that Have Entered the Korean Renewable Energy Industry"
Renewable Energy Promotion Strategies Open
Renewable Energy Promotion Strategies

The Korean government has set a target to reach 20% of power generation from renewable energy by 2030 and supply 95% of energy in new facilities from clean energy.
In order to secure demand for renewable energy, the Ministry of Trade,
Industry and Energy has adjusted the renewable portfolio standard (RPS) target for 2022 from 9% to 10%, up 1%p.

Related policies include the Renewable Energy 3020 Implementation Plans (December 2017), the Strategies for Enhancing
Competitiveness of the Renewable Energy Industry (April 2019), and the Third Energy Basic Plan (June 2019).

"Korea’s Renewable Energy Promotion Plans"
2040년까지 재생에너지 발전량 비중 확대

Proportion of Power Generation by Renewable Energy (%): 2016(7), 2022(10.5), 2030(20), 2040(30~35)

Installed Capacity of Renewable Energy(GW): 2016(13.3), 2022(27.5), 2030(63.8)
※ Source: Renewable Energy 3020 Implementation Plans (2017), Third Energy Basic Plan (2019)
Supply 95% of energy in new facilities from clean energy

2017년도 총 15.1GW - Photovoltaic 38%, Wind 8%

2018~2030년도 총 48.7GW - Photovoltaic 63%, Wind 34%

2030년도 총 63.8GW - Photovoltaic 57%, Wind 28%, Bio 5%, Waste 6%
※ Source: Renewable Energy 3020 Implementation Plans (2017)
Securing Demand for Renewable Energy

Mandatory Supply of Renewable Energy (GWh) - 2019(26,967), 2020(31,402) 16.4% 상승

Proportion of Mandatory Supply of Renewable Energy (%) - 2019(6%), 2020(7%)
※ Source: Renewable Energy Technological Development, Usage, and Distribution Action Plans (2020)
Vitalization of Hydrogen Economy

Annual Supply of Hydrogen (10,000 tons) - 2018(13), 2022(47), 2040(526)

Hydrogen Cars (10,000 units) - 2018(0.2), 2022(8.1), 2040(620)

Hydrogen Charging Stations (unit) - 2018(14), 2022(310), 2040(1200)
※ Source: Hydrogen Economy Vitalization Roadmap (2019)
Establish Differentiated Industrial Ecosystems per Region Open
Establish Differentiated Industrial Ecosystems per Region

Regions in which a foundation for a renewable energy industry exists, or in which large-scale projects are planned, will strengthen innovative infrastructure to build differentiated industrial ecosystems.
Local governments will take an active role to explore and promote large-scale, customized projects for their regions.
The government will support the construction of research facilities and infrastructure, and the fostering of R&D, empirical studies, and human resources.
- Chungcheongbuk-do(Photovoltaic)
  
  (Current) Host to many photovoltaic manufacturers; Produce 67% of cells and modules in Korea
  
  Promote a 1GW-scale project based on photovoltaic manufacturing foundation
  
  (Direction) Develop and demonstrate photovoltaic products and new converged products and services
  
  (Related companies) Hanwha Q Cells, Hyundai Energy Solutions, Hanwha Chemical, Doosan Fuel Cell, etc.
- East Sea Area (Floating offshore wind power)
  
  (Current) 750 companies from shipbuilding, marine, and heavy industries clustered; Excellent wind direction (8–8.5m/s)
  
  Plan to create 1GW floating-type offshore wind farm near East Sea gas field
  
  (Direction) Develop floating offshore wind farm (R&D-empirical-commercialization) and commercialize early
  
  (Related companies) Dongkuk S&C, Seohan ENP, LG Electronics, Top Solar, etc.
- Jeollabuk-do(Offshore wind power, Photovoltaic)
  
  (Current) Create the Saemangeum Renewable Energy Cluster
  
  Promote photovoltaic (3GW) and offshore wind power (1GW) by gaining participation of residents
  
  (Direction) Create clusters of manufacturers, builders, and research institutes; Convert businesses of marine equipment companies, etc.
  
  (Related companies) OCI, S-Energy, N Electric, Human Composites, etc.
- Gyeongsangnam-do(Offshore wind power)
  
  (Current) Hosts 84 companies from wind turbines (Doosan Heavy Industries and Construction, Unison) and parts
  
  Wind power projects of a total of 1.9GW, including Yokjido wind farm, under way
  
  (Direction) Large-scale wind power systems, parts development, empirical studies, and production
  
  (Related companies) Unison, Doosan Heavy Industries and Construction, Hyosung Heavy Industries, CS Bearing, Taewoong, Hyunjin Materials, etc.
- Jeollanam-do(Offshore wind power, Photovoltaic)
  
  (Current) 태양광 설비의 22%(1.3GW, 국내 최대) 소재
  
  Photovoltaic(2GW, 영암호 등), Offshore wind power(0.8GW, 완도 등) 추진
  
  (Direction) 융·복합 비즈니스 및 지역 상생형 모델 실증 거점화
  
  (Related companies) 신성이엔지, 탑인프라, 다쓰테크, 지필로스 등
※ Source : 재생에너지산업 경쟁력 강화 방안(2019)
※ Source: Korea Energy Agency

Invest KOREA

Energy/Environment PM

Ryu A Reum Key Industries Promotion Team

T.+82-2-3460-7887

Recommendation on Locations

BEST1

[Gwangju Metropolitan City Gwangsan-gu, Jeollanam-do Hampyeong County]

Bit-Green Industrial Complex

Designated area(m2) : 4,070,692
Management : Korea Industrial Complex Corporation
Nearby Railway : Hampyeong Station (30km)
Nearby Airport : Gwangju Airport (20km)

BEST2

[Jeollabuk-do Gunsan City]

Saemangeum District National Industrial Complex

Designated area(m2) : 18,495,346
Management : Saemangeum Development Agency
Nearby Railway : Gunsan Station (28km)
Nearby Airport : Gunsan Airport (15km)

BEST3

[Ulsan Metropolitan City Nam-gu]

Ulsan Techno General Industrial Complex(Ulsan Free Economic Zone)

Designated area(m2) : 1,286,977
Management : Ulsan Metropolitan City
Nearby Railway : Taehwagang Station (9km)
Nearby Airport : Ulsan Airport (15km)

BEST4

[Gyeongsangnam-do Miryang City]

Chunhwa Agricultural Industrial Complex

Designated area(m2) : 211,785
Management : Gyeongsangnam-do Miryang City
Nearby Railway : Sangdong Station (14km)
Nearby Airport : Gimhae International Airport (56km)

BEST5

[Incheon Metropolitan City Namdong-gu]

Namdong National Industrial Complex (Renewable Business District)

Designated area(m2) : 9,504,046
Management : Korea Industrial Complex Corporation
Nearby Railway : Bupyeong Station (9km)
Nearby Airport : Incheon Airport (32km)

BEST6

[Daejeon Metropolitan City Dong-gu]

Haso Eco-friendly General Industrial Complex

Designated area(m2) : 306,703
Management : Daejeon Metropolitan City
Nearby Railway : Daejeon Station (17km)
Nearby Airport : Cheongju International Airport (71km)