Green Energy
GTI Session
Korea’s “Green Energy” Policy 2010. 10. 11 Kim, Nam-Yll
Contents I. Towards Green Growth II. Green Energy Policy Targets of Korea III. Green Energy Industry of Korea IV. Policy Directions
2
-1-
Towards Green Growth
Low Carbon Green Growth
Green Growth New Growth Engine Shift to a Low-Carbon Economy
IT venture, R&D investment Restructuring Large enterprises Semi-conductor/Autos Open Market, stabilize price Investing in Heavy Chem. Industry Light ind. Heavy Chem. Industry
4
-2-
Policy Paradigm in the Green Growth Era
Low carbon economy & Society
Green Energy Industry
Conversion to low consumption
Strategic Technology Road map
Green Transformation of Major industry(Green Car)
Localizing & exporting green energy like renewables and smart grid
Facilitating investment of green industry
Master Plan for GHG reduction Negotiated Agreement
National Strategy for Green Growth
Development Strategy for Green Energy Industry
Green Transformation of Industry
Strategy for Greening the Industry 5
Green Energy Policy Targets of Korea
-3-
Target for Future Energy Mix National Energy Basic Plan(Aug.’08)
Minimizing Energy Use/ Low-Carbon Energy Mix
83%
27.8% Nuclear 14.9%
61%
Oil
43.4
Coal
25.3
LNG
13.8
12.0
’07
’30
33.0
11%
New & Renewable
2.4%
’07
’30
15.7
Nuclear capacity(MW) Share in capacity(%)
()
Share in generation(%)
(59.0) (48.9)
(35.5)
(34.2)
’07
’10
’20
7
’30
Target of Energy Efficiency Improvement Improving Energy Efficiency 28% by 2020 and 46% by 2030 544.0
MTOE(toe/thousand $)
BAU
500
46%
398.4 400 23.5% 11.3%
300
368.8 27.8%
299.3
target
300.4
236.5 203.5
(0.335)
(0.367)
282.0
265.1
200
(0.256)
288.0
(0.185)
(0.233)
(0.297)
’02
’07
’12
’17
’20
’30
• higher level than that of Germany which has improved efficiency the most in the world for the past 15 years
• Korea has enhanced 1.3% annually for the past 8 years
Improve 20% annually by 2020 Improve efficiency 20% by 2020 Improve efficiency 28% by 2020 8
-4-
Policy Targets for Renewable energy
Photovoltaic (Capacity MW)
Geothermal Marine Photovoltaic Hydro Solar Wind Bio Waste
0.4% 0.5% 0.5% 0.5% 0.6%
3,504
Wind 7,301
(Capacity MW)
199 80
1.4%
’07
’30
’07
Bio
3.4%
(Heat Energy Supply 1000 Gcal)
’30
Geothermal 36,487
(Heat Energy Supply
5,606
1000 Gcal)
3.7%
110 1,874
’07
’30
’07
’30
’07
’30 9
GreenhouseGasReductionMaster Plan,NegotiatedAgreement Master Plan to reduce GHG by 30% from BAU (2020) (Sectoral Target) (Energy & Industry Sector)
expansion of low carbon energy(nuclear), development & deployment of new technologies(CCS, smart grid) and support for green transformation
Negotiated Agreement on Energy-intensive Industries (Negotiated Agreement)
10
-5-
Green Energy Industry of Korea
Classification of Green Energy Industry
GHG emission(Gt CO2/year) 62Gt
Reference Scenario
48Gt
28Gt
Technology innovation scenario
14Gt
* source: IEA
renewables
photovoltaic, wind, hydrogen fuel cell, IGCC
Clean fossil fuel
CTL, GTL, CCS
Energy Efficiency improvement
LED, Power IT, Energy Storage, Combined heat & power 12
-6-
Category
Approach
Technology Solar PVs
High
Wind
Market-driven
Overseas Market Energy Storage
LED
CHP
Smart Grid Fuel Cell Clean Fuel Technologydriven
Market Creation
Market readiness
Early Development (9)
IGCC CCS Energy Storage
Wind Solar PV PVs Green Car
Future Market
LED Smart Grid
Fuel Cell
CHP IGCC
Corporate-led
Energy Efficiency Building
Clean Fuels
Heat Pump NextGeneration Development (6)
Heat Pump
Nuclear Power
Nuclear Power
Low
Super Conductivity CCS
Energy Effic. Bldg Low
Green Car University / R&D Center
Technology level
High
Superconductivity
13
Korea’s Green Energy Market Market Size for Renewables Korea’s Renewable energy industry has dramatically expanded for the past 5 years * companies(times): 3.6, employees: 13.3, sales: 29, exports: 31.4 Companies(number) ` 41(04)→146(09)
employees(person) ` 689(04)→9,151(09)
sales(billion won) ` 1,394(04)→4.275(09)
exports(billion dollar) ` 0.65(04)→20.4(09)
In 2010, employment (28% higher), sales (100% higher), export (125% higher), private investment (27% higher) from previous year 14
-7-
Korea’s Green Energy Market Future Prospects 3 trillion won investment in 9 key green energy sectors by 2012 * renewables: 1.6, energy efficiency: 0.7, clean fuel: 0.4, human resources: 0.3
Expansion of the Gov. supports for promising areas [FIT, R&D] * 118(2003) ▶ 228(2005) ▶ 784(2008) ▶ 774(2009) ▶ 808(2010)-expected [billion won]
Increase for Private investment in plant construction and tech development * 1.3(2007)→ 3.85(2009) [billion won]
Economic feasibility, global competitiveness, the world 10th largest energy consumer, massive market for GHG
15
Korea’s Green Energy Market : Big Players Entry into Overseas Market Samsung C&T and KEPCO concluded a deal with Ontario, Canada to build a 2.5GW power cluster by 2016 62Gt
A good example of Korea receiving recognition in developed markets for its ability to manage and carry out massive projects
Investment of Green Energy Business LG plans to invest $18 billion in Green Management 62Gt
* $9 billion for R&D [green new products, new business market], & $9 billion for equipment investment (green process & infrastructure) [in 2020, 10% of total sales will come from green industry such solar battery and smart grid]
POSCO intends to invest $6.31 billion, generate an annual revenue of $9 billion, and employ 870,000 people * equipped with new economic competitiveness through the development of green business 16
-8-
Policy Directions
Policies for Renewable energy 1 Improving the Distribution of Renewables Changing from FIT into RPS staring from 2012 * FIT: Feed-in Tariff, RPS: Renewable Portfolio Standard
Promoting distribution with competition among renewable energy sources
2 Creating Demand for Renewables Deploying new products such as residential hydrogen fuel cells * 1 Million Green home(total) :
2400(2008)
6200(2010)
1 million(2020)
Increasing supply of renewables in connection with national project
3 Nurturing SMEs for Material & Component of Renewables Joint R&D and commercialization cooperation between conglomerates and SMEs Boosting SMEs through domestically producing key components
-9-
18
Policies for Renewable energy 4 Strategy for Entry into Overseas Market Accelerating expansion into overseas markets with the Gov. support policies Establishing analysis for overseas market & comprehensive plans Dispatching public-private teams to target countries
5 Support System for Exporting Renewables Operating ‘Export Council’ such as KOTRA, agencies, export finance corporation(100MW)
Expanding marketing & exports such as supporting participation to foreign exhibitions
6 Roadmap for Offshore Wind Power Building test-bed and roadmap for offshore wind power (100MW) selecting area for test-bed in 2010 & completing its development in 2012
19
Policies for Smart Grid National Smart Grid Roadmap Establishing roadmap for the world first national smart grid (2009.1~2010.1) Enacting law on smart grid to set up legal basis for investment of smart grid and giving a proper role to each part
Smart Grid Test-bed
·
Building smart grid test-bed for commercialization and export (2009.8~2013.5) ＊developing smart grid with $2.3 billion from public and private from 2005 to 2012
Overseas Markets of Smart Grid Up-scaling capabilities to enter into the · U.S. market by making up cooperation system with the State of Illinois ＊operating joint cooperation committee for 6 months to decide program
- 10 -
20
Korea’s “Green Energy” Policy 2010. 10. 11 Kim, Nam-Yll
Contents I. Towards Green Growth II. Green Energy Policy Targets of Korea III. Green Energy Industry of Korea IV. Policy Directions
2
-1-
Towards Green Growth
Low Carbon Green Growth
Green Growth New Growth Engine Shift to a Low-Carbon Economy
IT venture, R&D investment Restructuring Large enterprises Semi-conductor/Autos Open Market, stabilize price Investing in Heavy Chem. Industry Light ind. Heavy Chem. Industry
4
-2-
Policy Paradigm in the Green Growth Era
Low carbon economy & Society
Green Energy Industry
Conversion to low consumption
Strategic Technology Road map
Green Transformation of Major industry(Green Car)
Localizing & exporting green energy like renewables and smart grid
Facilitating investment of green industry
Master Plan for GHG reduction Negotiated Agreement
National Strategy for Green Growth
Development Strategy for Green Energy Industry
Green Transformation of Industry
Strategy for Greening the Industry 5
Green Energy Policy Targets of Korea
-3-
Target for Future Energy Mix National Energy Basic Plan(Aug.’08)
Minimizing Energy Use/ Low-Carbon Energy Mix
83%
27.8% Nuclear 14.9%
61%
Oil
43.4
Coal
25.3
LNG
13.8
12.0
’07
’30
33.0
11%
New & Renewable
2.4%
’07
’30
15.7
Nuclear capacity(MW) Share in capacity(%)
()
Share in generation(%)
(59.0) (48.9)
(35.5)
(34.2)
’07
’10
’20
7
’30
Target of Energy Efficiency Improvement Improving Energy Efficiency 28% by 2020 and 46% by 2030 544.0
MTOE(toe/thousand $)
BAU
500
46%
398.4 400 23.5% 11.3%
300
368.8 27.8%
299.3
target
300.4
236.5 203.5
(0.335)
(0.367)
282.0
265.1
200
(0.256)
288.0
(0.185)
(0.233)
(0.297)
’02
’07
’12
’17
’20
’30
• higher level than that of Germany which has improved efficiency the most in the world for the past 15 years
• Korea has enhanced 1.3% annually for the past 8 years
Improve 20% annually by 2020 Improve efficiency 20% by 2020 Improve efficiency 28% by 2020 8
-4-
Policy Targets for Renewable energy
Photovoltaic (Capacity MW)
Geothermal Marine Photovoltaic Hydro Solar Wind Bio Waste
0.4% 0.5% 0.5% 0.5% 0.6%
3,504
Wind 7,301
(Capacity MW)
199 80
1.4%
’07
’30
’07
Bio
3.4%
(Heat Energy Supply 1000 Gcal)
’30
Geothermal 36,487
(Heat Energy Supply
5,606
1000 Gcal)
3.7%
110 1,874
’07
’30
’07
’30
’07
’30 9
GreenhouseGasReductionMaster Plan,NegotiatedAgreement Master Plan to reduce GHG by 30% from BAU (2020) (Sectoral Target) (Energy & Industry Sector)
expansion of low carbon energy(nuclear), development & deployment of new technologies(CCS, smart grid) and support for green transformation
Negotiated Agreement on Energy-intensive Industries (Negotiated Agreement)
10
-5-
Green Energy Industry of Korea
Classification of Green Energy Industry
GHG emission(Gt CO2/year) 62Gt
Reference Scenario
48Gt
28Gt
Technology innovation scenario
14Gt
* source: IEA
renewables
photovoltaic, wind, hydrogen fuel cell, IGCC
Clean fossil fuel
CTL, GTL, CCS
Energy Efficiency improvement
LED, Power IT, Energy Storage, Combined heat & power 12
-6-
Category
Approach
Technology Solar PVs
High
Wind
Market-driven
Overseas Market Energy Storage
LED
CHP
Smart Grid Fuel Cell Clean Fuel Technologydriven
Market Creation
Market readiness
Early Development (9)
IGCC CCS Energy Storage
Wind Solar PV PVs Green Car
Future Market
LED Smart Grid
Fuel Cell
CHP IGCC
Corporate-led
Energy Efficiency Building
Clean Fuels
Heat Pump NextGeneration Development (6)
Heat Pump
Nuclear Power
Nuclear Power
Low
Super Conductivity CCS
Energy Effic. Bldg Low
Green Car University / R&D Center
Technology level
High
Superconductivity
13
Korea’s Green Energy Market Market Size for Renewables Korea’s Renewable energy industry has dramatically expanded for the past 5 years * companies(times): 3.6, employees: 13.3, sales: 29, exports: 31.4 Companies(number) ` 41(04)→146(09)
employees(person) ` 689(04)→9,151(09)
sales(billion won) ` 1,394(04)→4.275(09)
exports(billion dollar) ` 0.65(04)→20.4(09)
In 2010, employment (28% higher), sales (100% higher), export (125% higher), private investment (27% higher) from previous year 14
-7-
Korea’s Green Energy Market Future Prospects 3 trillion won investment in 9 key green energy sectors by 2012 * renewables: 1.6, energy efficiency: 0.7, clean fuel: 0.4, human resources: 0.3
Expansion of the Gov. supports for promising areas [FIT, R&D] * 118(2003) ▶ 228(2005) ▶ 784(2008) ▶ 774(2009) ▶ 808(2010)-expected [billion won]
Increase for Private investment in plant construction and tech development * 1.3(2007)→ 3.85(2009) [billion won]
Economic feasibility, global competitiveness, the world 10th largest energy consumer, massive market for GHG
15
Korea’s Green Energy Market : Big Players Entry into Overseas Market Samsung C&T and KEPCO concluded a deal with Ontario, Canada to build a 2.5GW power cluster by 2016 62Gt
A good example of Korea receiving recognition in developed markets for its ability to manage and carry out massive projects
Investment of Green Energy Business LG plans to invest $18 billion in Green Management 62Gt
* $9 billion for R&D [green new products, new business market], & $9 billion for equipment investment (green process & infrastructure) [in 2020, 10% of total sales will come from green industry such solar battery and smart grid]
POSCO intends to invest $6.31 billion, generate an annual revenue of $9 billion, and employ 870,000 people * equipped with new economic competitiveness through the development of green business 16
-8-
Policy Directions
Policies for Renewable energy 1 Improving the Distribution of Renewables Changing from FIT into RPS staring from 2012 * FIT: Feed-in Tariff, RPS: Renewable Portfolio Standard
Promoting distribution with competition among renewable energy sources
2 Creating Demand for Renewables Deploying new products such as residential hydrogen fuel cells * 1 Million Green home(total) :
2400(2008)
6200(2010)
1 million(2020)
Increasing supply of renewables in connection with national project
3 Nurturing SMEs for Material & Component of Renewables Joint R&D and commercialization cooperation between conglomerates and SMEs Boosting SMEs through domestically producing key components
-9-
18
Policies for Renewable energy 4 Strategy for Entry into Overseas Market Accelerating expansion into overseas markets with the Gov. support policies Establishing analysis for overseas market & comprehensive plans Dispatching public-private teams to target countries
5 Support System for Exporting Renewables Operating ‘Export Council’ such as KOTRA, agencies, export finance corporation(100MW)
Expanding marketing & exports such as supporting participation to foreign exhibitions
6 Roadmap for Offshore Wind Power Building test-bed and roadmap for offshore wind power (100MW) selecting area for test-bed in 2010 & completing its development in 2012
19
Policies for Smart Grid National Smart Grid Roadmap Establishing roadmap for the world first national smart grid (2009.1~2010.1) Enacting law on smart grid to set up legal basis for investment of smart grid and giving a proper role to each part
Smart Grid Test-bed
·
Building smart grid test-bed for commercialization and export (2009.8~2013.5) ＊developing smart grid with $2.3 billion from public and private from 2005 to 2012
Overseas Markets of Smart Grid Up-scaling capabilities to enter into the · U.S. market by making up cooperation system with the State of Illinois ＊operating joint cooperation committee for 6 months to decide program
- 10 -
20
