South Korea Unveils Package to Support Renewable Energy Industry

Strategic Insights -

South Korea has announced a comprehensive plan to bolster its position in the global renewable energy market, with a focus on increasing government support, research and development, and streamlining regulations. The Presidential Committee on Green Growth has unveiled a package of measures aimed at promoting the renewable energy sector, including expanded export financing, doubled research and development, and relaxed regulations for renewable energy firms. The plan is expected to strengthen South Korea's global competitiveness and reduce its reliance on fossil fuels. The government aims to make the renewable energy industry a key driver of economic growth and job creation.

Key Takeaways:

  • The South Korean government will increase export financing for renewable energy companies to 10.5 trillion won (US$9.5 billion) from last year's 6.6 trillion won.
  • The government will double research and development (R&D) in the renewable energy sector by 2015 from current levels.
  • Companies conducting R&D projects valued at 3 billion won or more will be required to take smaller firms as partners, promoting "shared growth".
  • The government will reflect the additional cost of generating power from renewable energy sources in electricity charges under the renewable portfolio standard (RPS) system.
  • Regulations for renewable energy firms, such as infrastructure requirements for wind-power companies, will be relaxed.

Statistics:

  • Export financing for renewable energy companies will increase to 10.5 trillion won (US$9.5 billion).
  • R&D spending in the renewable energy sector will be doubled by 2015.
  • The additional cost of generating power from renewable energy sources is expected to be reflected in electricity charges.
  • The RPS system will require large-scale electricity providers to produce a certain portion of power through renewable energy sources.
  • The government aims to make the renewable energy industry a key driver of economic growth and job creation.

Sources:

  • (Yonhap) url: nt 31-10 2019
  • Asia Pulse , Oct 31