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Renewable Energy

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Renewable energy
  • Securing Global Competitiveness Based on a High-level of Technology Close
    Securing Global Competitiveness Based on a High-level of Technology
    Korea‘s level of technology in the field of new and renewable energy stands at 86% (with the highest level being 100%), according to the Korea Institute of Science and Technology Planning and Evaluation (KISTEP, 2018). There is a technological gap of around 10% compared to other developed countries, such as the US, Japan, and European nations.
    The growth of the photovoltaic industry is led by cell and module manufacturers (Hanwha Solution, Shinsung ENG, Hyundai Energy Solution, and OCI). Those companies are expanding the domestic market and at the same time, increasing exports and the number of overseas plants.
    The wind power industry has infrastructure for producing major parts with high growth potential (blades, power converters). The industry intends to expand the domestic market and investment and secure global competitiveness by creating large-scale wind farms.
    Domestic manufacturers have already acquired manufacturing capabilities in the hydrogen field, such as for hydrogen vehicles and fuel cells, and are now promoting global projects to manufacture and expand the infrastructure for green hydrogen production (transport, storage, charging and sales).
    "Domestic Technology Competitiveness of Renewable Energy Sources"
    Domestic Technology Competitiveness of Renewable Energy Sources Energy Source, Annual Investment by the Government (USD million), Securing Technological Competitiveness(Technological Gap with the Country with the Highest Level, Increase or Decrease of Technological Gap, Technology Level Compared to Leading Countries)
    Energy Source Annual Investment by the Government (USD million)1) Securing Technological Competitiveness
    Technological Gap with the Country with the Highest Level2) Increase or Decrease of Technological Gap 2) Technology Level Compared to Leading Countries 3)
    Photovoltaic 52.4 Under 3 years Decreased under 1 year compared to 2014 Over 80%
    Wind power 35.9 Over 5 years Increase compared to 2014 Over 60%
    Hydrogen 6.1 3-5 years Decreased over 1 year compared to 2014 Over 70%
    Fuel cell 25.9 Under 3 years Decreased under 1 year compared to 2014 Over 80%
    Solar 4.2 Under 3 years Decreased under 1 year compared to 2014 Over 80%
    Thermal 5.7 Over 5 years Decreased over 1 year compared to 2014 Over 70%
    Marine 6.8 3-5 years Decreased over 1 year compared to 2014 Over 60%
    ※ Source: Key Renewable Energy Technology Development Evaluation Report (KISTEP, July 2018)
    • 2013-2017, annual average government investment amount, project budget request (2014-2018), and won-dollar conversion by applying the average exchange rate for 2018
    • 2016 Technology Level Evaluation (KISTEP, 2017)
    • Research on New and Renewable Energy Technology Level and Overseas Technology Adoption (KISTEP)
  • Increased Capacity and Power Generation Ratio of Renewable Energy Open
    Increased Capacity and Power Generation Ratio of Renewable Energy
    After the revision of the New and Renewable Energy Development, Use, and Dissemination Promotion Act in October 2019, statistics now exclude non-recycled wastes, according to the Korea Energy Agency. The proportion of new and renewable energy based power generation in 2020 was 7.43%, an increase of 25.9% compared to the previous year, due to the increase in photovoltaic and wind power based power generation (2019 34,196GWh → 2020 43,062GWh). The cumulative installed capacity of new and renewable energy in 2020 was 25.9 GW, up 3.2%p compared to the previous year. Solar power accounts for 66.8% and wind power accounts for 6.3% (KEA, 2020).
    "New/Renewable Energy Power Generation and Share in the Past Five Years "
    New/Renewable Energy Power Generation and Share in the Past Five Years Category, Years
    Category '16 '17 '18 '19 '20
    Total power generation(MWh) 562,219,124 78,012,662 594,585,781 589,148,478 579,936,931
    Share(%) 3.32 4.11 4.99 5.80 7.43
    Total power generation(MWh) 18,664,233 23,767,948 29,656,919 34,195,813 43,061,511
    Renewable energy based power generation 17,160,150 21,012,926 26,189,965 30,879,376 37,161,788
    New energy based power generation 1,504,083 2,755,022 3,466,954 3,316,436 5,899,723
    Renewable energy Photovoltaic 5,515,817 7,737,852 10,154,964 14,163,040 19,297,854
    Wind power 1,683,142 2,169,014 2,464,879 2,679,158 3,149,798
    Hydro 2,858,714 2,819,882 3,374,375 2,791,076 3,879,383
    Marine 495,556 489,466 485,353 474,321 457,263
    Bio 6,237,564 7,466,664 9,363,229 10,415,632 9,938,354
    Waste 369,357 330,048 347,166 356,149 439,137
    New and renewable energy Fuel cell 1,143,402 1,469,289 1,764,948 2,285,164 3,522,350
    IGCC 360,681 1,285,733 1,702,006 1,031,272 2,377,374
  • Current Status of the Renewable Energy Industry Open
    Current Status of the Renewable Energy Industry
    As the government’s renewable energy transition policy has expanded to focus on new and renewable energy, the 2020 Industry Statistics surveyed the status of the overall industry including the enactment of New and Renewable Energy Industry Special Enactment in 2020 as well as the manufacturing, construction, supply, and service industries. As of 2020, the total sales of the new and renewable energy industry was approximately KRW 25.5 trillion. The number of employees stood at 119,000, and investment grew to KRW 7.7 trillion.
    The construction industry occupies a large proportion, due to the expansion of photovoltaic, followed by fuel cell and wind power based construction. The power generation and heat supply industries also account for 96% and 70% of the number of companies and employees, respectively, due to the increase in small-scale photovoltaic power generation companies.
    The service industry, in addition to manufacturing, construction, and supply industries, recorded sales of KRW 1.3 trillion with 5,000 employees, because of expansion of the new and renewable energy supply as well as engineering and maintenance service companies.
    Current State of Renewable Energy Production Category, Number of Companies, Number of Employees, Sales, Investment
    Category Number of Companies Number of Employees Sales Investment
    the number Proportion(%) person Proportion(%) KRW 100 million Proportion(%) KRW 100 million Proportion(%)
    Manufacturing 499 0.6 12,759 10.8 107,369 42.2 3,180 3.9
    Construction 2,169 2.6 17,617 14.9 71,886 28.2 995 1.2
    Power generation and heat supply 78,276 95.6 82,810 69.9 62,696 24.6 72,460 94.6
    Service 963 1.2 5,322 4.5 12,779 5.0 210 0.3
    Gold 81,907 100.0 118,508 100.0 254,730 100.0 76,845 100.0
    ※ Source: 2020 New and Renewable Energy Industry Statistics (Korea Energy Agency, December 2021)
  • Global Photovoltaic and Wind Power Companies Continue to Enter Korea Open
    Global Photovoltaic and Wind Power Companies Continue to Enter Korea
    Companies in Japan, Germany, Spain, and China have been continuously promoting the establishment of corporations in Korea. Some major companies in Europe and North America are promoting the establishment of subsidiaries in charge of power generation or Korean corporations through cooperation with local governments or Korean companies, so that they can participate in plans for offshore wind power.
    Foreign direct investment into Korea has continued to increase since 2013, according to the Ministry of Trade, Industry and Energy in 2021. It contributes to the high proportion of investment in manufacturing, which plays the role of producing intermediate parts, such as machinery and semiconductors. Analysis participation in the 4th industrial revolution-related global value chain has been a factor for increased FDI in Korea.
    Vestas, a Danish wind turbine manufacturer, recently settled a win-win business agreement in relation to Ulsan floating offshore wind farm project. Investment from foreign private companies continue to increase, including CIP, a Danish investment company that partnered with SK E&S; GIG-Total of UK and France; Shell-CoensHexicon of the Netherlands and Sweden; Ocean Winds of Spain; and Equinor of Norway.
    Influx of Japan and JA Solar of China invested capital in the Saemangeum Renewable Energy Cluster and started construction of their plants. Orsted, a state-owned energy company of Denmark, chose Korea to open their second corporation in the Asia-Pacific region, with an aim to enter the wind power business in Korea.
    "Global Companies Located in Korea"
    Vestas, Orsted, JA Solar, influxdata, CIP, Ocean Winds Large view of images
  • Renewable Energy Promotion Plans Open
    Renewable Energy Promotion Plans
    Following the announcement of the carbon neutrality target by 2050, the Korean government plans to revise the sub-roadmap and implementation plans to create a low-carbon economy and industrial ecosystem and make a transition to a carbon-neutral society.
    The 2050 Carbon Neutrality Committee (October 2010) recently resolved and made a proposal to the government regarding 2030 National Greenhouse Gas Reduction Goal (Nationally Determined Contribution (NDC), a reduction in greenhouse gases by 40% of 2018 amounts by 2030), and a 2050 Carbon Neutrality Scenario (suspend coal power generation to minimize carbon emissions required for electricity and heat production).
    Current policies aiming to promote new and renewable energy include
    ▲ The Renewable Energy 3020 Implementation Plan (December 2017),
    ▲ The Renewable Energy Industry Competitiveness Reinforcement Plan (April 2019),
    ▲ The 3rd Basic Energy Plan (June 2019)
    ▲ The Korean Version of the New Deal Comprehensive Plan (July 2020)
    ▲ The 2050 Carbon Neutrality National Assembly Speech (October 2020)
    ▲ The 5th New and Renewable Energy Basic Plan (9th Basic Plan for Electricity Supply and Demand) (December 2020)
    ▲ The 2050 Carbon Neutrality Committee NDC Upgrade and 2050 Scenario (October 2021)
    Please refer to the information below

    01. Renewable Energy 3020 Implementation Plan (December 2017)

    • 20% of renewable energy power generation by 2030
    • Supply over 95% with clean energy (PV 30.8GW, wind 16.5GW)
    • Short-term (12.4 GW) and Mid to long-term (36.3 GW)

    02. Short-term (12.4 GW) and Mid to long-term (36.3 GW)

    • Exports of USD 10 billion and 40,000 employees by 2030
    • Lay the foundation for a new growth engine
    • (Market) Carbon certification, REC, lowest efficiency
    • (System) Repowering, RE100, regional innovation

    03. 3rd Basic Energy Plan (June 2019)

    • Sustainable growth and improvement of quality of life (30-35% of renewable E power generation by 2040)
    • Energy consumption structure innovation, clean and safe energy mix conversion, distributed/participatory energy Expand system, expand competitiveness and secure foundation

    04. Korean Version of the New Deal Comprehensive Plan (July 2020

    • (Digital New Deal) Strengthen the D.N.A ecosystem, develop virtual industry, improve educational infrastructure
    • (Green New Deal) Infrastructure green transition, low carbon distributed energy diffusion, green industry innovation (42.7GW of renewable E generation capacity by 2025, create 38,000 jobs)

    05. 2050 Carbon Neutrality National Assembly Speech (October 2020)

    • 2050 carbon neutrality goal
      1. (1) Low carbon economic structure
      2. (2) Low carbon industrial ecosystem
      3. (3) Fair transition to a carbon-neutrality society

    06. 5th New and Renewable Energy Basic Plan (9th Basic Plan for Electricity Supply and Demand) (December 2020)

    • 25.8% of renewable power generation by 2034 (Regeneration E 22.2% New E 3.6%)
    • Target installed capacity: 84.4 GW (Regeneration 80.8, New 3.6)

    New/renewable energy industry support system

    The Renewable Energy Certificate (REC) weight was reorganized to strengthen support for investment in photovoltaic, wind power, and hydrogen fuel cells. The targeted mandatory supply ratio of new and renewable energy by 2026 has been recently raised to 25% to expand the demand for new and renewable energy. Investment in energy-saving facilities (including renewable e) will receive a tax credit (tax credit ratio: 7% for SMEs, 3% for medium sized enterprises, and 1% for others). The Ministry of Trade, Industry and Energy operates various systems, such as FDI funds for new industries and an online investment matching system (KRW 50 billion fund and a matching platform between domestic and foreign companies seeking investment Opportunities).
    Large view of images
  • Establishment of Industrial Ecosystem Differentiated by Region Open
    Establishment of Industrial Ecosystem Differentiated by Region
    Regions with a renewable energy industry base or where large-scale projects are planned will strengthen infrastructure and create differentiated industrial ecosystems by region. Local governments will play a leading role in discovering and promoting customized, large-scale projects for their regions, and the central government will support the establishment of infrastructure, R&D demonstration, and human resource development.
    Please refer to the information below
    • Chungbuk (Photovoltaic)
      • (Status) Many PV manufacturers, 67% of domestic cells and modules produced
        • Promote PV projects with a scale of approximately 1GW
      • (Direction) PV products and convergence, develop and verify new products and services
      • (Related companies) Hanwha Q CELLS, Hyundai Energy Solutions, Hanwha Chemical, Doosan Fuel Cell
    • Donghae (East Sea) area (Offshore Wind Power)
      • (Status) 750 companies (shipbuilding, offshore, heavy industry), good wind direction (8-8.5m/s)
        • Promote the creation of a 1GW floating offshore wind farm near the Donghae Gas Field
      • (Direction) Floating offshore wind power R&D-verification-commercialization (development and early industrialization)
      • (Related companies) Dongguk S&C, Seohan E&P, LG Electronics, Top Solar
    • Jeonbuk (Photovoltaic, Offshore Wind Power)
      • (Status) Saemangeum Renewable Energy Cluster
        • Promote solar power (3GW) and offshore wind power (1GW) through resident participation
      • (Direction) Consolidate manufacturing/construction companies/research institutes, conversion of shipbuilding equipment and materials companies
      • (Related companies) OCI, S-Energy, N Electric, Human Composite, etc.
    • Gyeongnam (Offshore Wind Power)
      • (Status) 84 wind turbine and parts companies (Doosan Heavy Industries and Construction, Unison)
        • Promote wind power project with a total scale of 1.9GW, including Yokjido offshore wind power
      • (Direction) Specialized as a base for development, demonstration, and production of ultra-large wind power systems and parts
      • (Related companies) Unison, Doosan Heavy Industries and Construction, Hyosung Heavy Industries, CS Bearing, Taewoong, Hyunjin Materials
    • Jeonnam (Photovoltaic, Offshore Wind Power)
      • (Status) 22% of PV facilities (1.3GW, largest in Korea)
        • PV (2GW, Yeongam Lake), Promote offshore wind power (0.8GW, Wando)
      • (Direction) Convergence business and win-win model demonstration base
      • (Related companies) Shinsung ENG, Top Infra, Dasstech, GPhiilos
    Large view of images
    ※ Source: Renewable Energy Industry Competitiveness Reinforcement Plan (2019)
    ※ Data also provided by: Korea Energy Corporation
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