Current National Framework

for Renewable Energies

EUCCK ENERGY & ENVIRONMENT COMMITTEES
Breakfast Meeting
December 4, 2008
Kyung-Jin BOO
Renewable Energy Division
 CONTENTS
Ⅰ. Policy Evolution of NREs in Korea
Ⅱ. Recent Development in NREs in Korea
Ⅲ. NRE Policy Goals and Strategies
Ⅳ. Mid- and Long-Term Goals and Targets
Ⅴ. NRE Status and Policies by Type

Ⅵ. Development Strategy of Green Energy Industry

Ⅶ. Concluding Remarks
Appendix : About the KEEI

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1
CURRENT STATUS & FUTURE OF
NRE IN KOREA

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 POLICY EVOLUTION IN KOREA
Year Legislation Notes
Promulgation of The Promotional Act of Legal basis for NRE R&D
1987 activities
NRE Development
Promotional Act of NRE Development, Amendment for legal
1997
Utilization&Deployment(1stAmendment) basis for NRE dissem.
Promotional Act of NRE Development, Incl. obligation on pub.
2002
Utilization&Deploymnt (2nd Amendment) bldg, cert. FIT,
The 2nd National Basic Plan for NRE 10 yr plan, target:
2003 3%(2006), 5%(2011)
Technology Development & Deployment
Promotional Act of NRE Development, Incl. standardizat‟n,
2004
Utilizat’n&Deploymnt(3rd Amendment) RESCOs. etc.
The 3rd National Basic Plan for NRE Target year 2018 (mid),
2008 Technology Development & Deployment 2030 (long), RE
(Underway) industry promotion

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 STATUS OF NRES IN KOREA
NRC Share in 2007: 2.4%(5,757,000 TOE)
Average annual increasing rate: 18.2% ↑(1990-2007)
– 5.7% for primary energy
7,000 3.00%
Use (TOE)
보급량(천TOE) 2.39%
6,000 2.50%
비중
Share (%) 2.06%
5,000
2.00%
4,000
1.40% 1.50%
3,000
1.00%
2,000
0.36%
1,000 0.50%

- 0.00%
1990 1992 1994 1996 1998 2000 2002 2004 2006
 Large hydros included since 2003
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4
 Structural Imbalance
NRE share still marginal as compared to those in other OECD
countries
Wastes and hydros : 91%

덴마크
DEN 13.6%
프랑스
France 5.9% Hydros
수력
16.4%
미국
USA 4.2% Wastes
폐기물
74.8%
독일
GER 3.8%
일본
JPN 3.2% Bio
바이오
6.0%
한국
KOR 2.4% 풍력
Fuel
연료전지Cells PVs
태양광Solar
태양열Th Wind
1.6%
0.1% 0.3% 0,5%
• IEA 2006(2004: wastes, large hydros included)
Korea: 2007 preliminary statistics

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LONG-TERM ENERGY POLICY: GOAL & DIRECTIONS
Low Carbon
GreenGrowth

Environment
Energy Friendly
Security
Energy
Efficiency

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 POLICY GOALS
Sustainable Energy Development via
New & Renewable Energy

NRE deployment 11% Fostering NREs as

Goal I Goal II
by 2030 Green Growth Industry

Enhanced Cost-effective Strategic R&D & core technology

Deployment of NREs
Expansion of hard- & soft-ware
To large scale deployment
Introduction of mkt mechanism
For a viable NRE industy
 leading the future market
Expanding infrastructure for
indigenization of parts & sys.
Early realization of grid parity via
hi efficiency, low cost tech dev

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 LARGE SCALE DEPLOYMENT OF NRES
Deployment of NREs based on Cost-effectiveness
– Biofuels, Ligneous Biomass, Tidal Power, etc.
Expansion of resource-recycled energy system based on wastes-to-energy
Strategic R&D and deployment: wind, solar PVs, H2/Fuel Cells
As a result, energy mix in NRE consumption shifted into a balanced one

Wastes % % Bio E % % PV/Wind % %

35,000 35,000
Policy Solar Th 11%
30,000
Bau 11.0%
30,000 Solar PV
Wind
25,000 25,000 Bio
Hydro 5.7%
20,000 20,000 Geotherm
6.1% Ocean
15,000
5.7% 15,000 Wastes
3.5%
10,000 2.6% 4.2% 10,000
3.1%
2.2%
5000 5000

103TOE 103TOE
2008 2012 2016 2020 2024 2028 2030 2006 2030 Bau 2030Policy

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NEW & RENEWABLE ENERGY
STATUS & POLICIES BY TYPE

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 SOLAR PVS

Expansion of Domestic Market

– Cost down based on a wide uptake of solar PV systems
 Solar roofs program: 100 roofs in 2003  8,000 in 2007  10,000 in 2012
 Installation cost: $15,000/kW in 2003  $9,400 in 2006  $84,000 in 2007
Promoting Solar PVs as an export industry through aggressive
investment
– Integrated mass production
 Poly-silicon, etc
– Emergence of PV export companies
 Hyundai Heavy Industry and KPE, etc
 Over 20,000 thousand dollars per year

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 WIND POWER

Wide uptake of Onshore Wind via Strategic Approach

– Governmental support such as subsidies, financial supports, Feed-In
Tariffs
– Deployment of indigenized wind turbines in conjunction with local NRE
dissemination (Kangwon : 98MW)
Indigenization of Onshore Wind Power Generation
– Technical validation of onshore wind technology
– Indigenization of 3MW onshore wind turbine
Mass Production of Wind Power System
– Investment in facilities for mass production of
indigenized wind turbines and blades
 750kW turbines indigenized

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 HYDROGEN & FUEL CELLS

A Long-Term Master Plan for a H2 Economy was established

and being implemented
– Basic strategies and phased action plan were developed to realize a H2
economy by 2040
– Institutional arrangements underway as a follow up to the master plan
Development and Deployment of Fuel Cells in Energy Sectors
– Transportation: Expanded R&D, monitoring
projects, building infrastructure including
H2 stations
– Residential: R&D and monitoring for RPG
– Power generation: grid-connected fuel cell
power plants, micro fuel cells for notebooks

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 BIOENERGY

A wide uptake of Biodiesel

– Commercialization and deployment of BD5 since July 2006,
– “Mid- and long-term plan for Biodiesel dissemination”
 Demonstration: Seoul Metros („02-‟05)nation-wide (BD5) since 2006
Technology Validation of Ethanol
– Replacing MTBE with ethanol as oxygenator
– A study on market development for ethanol
Ligneous Biomass and Biogas, etc
– Energy utilization of ligneous biomass
 wood chips and pellets as feedstocks for cogeneration
– Livestock manure to be used for biogas generation in conjunction with
local NRE deployment

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 GEOTHERMAL/SOLAR THERMAL

Geothermal: Development of Core Technologies and

Expansion of Deployment Base
– Consistent implementation of subsidization,
local NRE dissemination projects
– Reform in electricity rate structure to allow for
a wide-spread use of heat pumps
Solar Thermal: Securing a Stable Market
– Operation of A/S centers to resolve complaints from
customers
 8 regions for 2,999 units
– Technology development and validation

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 WASTE-TO-ENERGY

Environment-Friendly Use of Wastes

– Combustible Renewable Wastes  RDF, RPF, etc.
– A greater number of RDF production plants using combustible municipal
wastes in urban areas
Cogeneration based on RDF
– Technology validation of
10MW RDF cogeneration plant

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 IGCC/TIDAL POWER

IGCC as the Next Generation of Coal-Fired Power Generation

Technology
– Technology validation of a 300MW
plant underway (2006-2014)
– Participation in USDOE‟s FutureGen
Project (2006-2011)
Tidal Power
– Commercial tidal power plants underway
 Tidal Power Plant (254MW) in Sihwa Lake by
Korea Water Resources Corporation (KWRC)
– New 2-3 major projects under consideration
 Kanghwa Island, Garorim & Cheonsoo Bays, etc.

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 HYDRO POWER

Large Hydro Power

– Environmental regulations: major barriers to development of a large hydro
power and small ones as well
Small Hydro Power
– Development potential: 1,500MW, Installed capacity: 62MW
– Kaplan, Francis types were indigenized and development of micro-system
underway
– Feed-In Tariff to be improved to induce
a wider uptake of small hydros
– Developing a variety of small hydro
power sources
 Cooling towers of power plants,
water reservoir for agriculture, etc.

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DEVELOPMENT STRATEGY OF
GREEN ENERGY INDUSTRY

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CONCEPT OF GREEN ENERGY INDUSTRY
New Industries to reduce GHG emissions inno

62GT
Energies of no GHG
Reference Scenario (BaU) emissions: 27%

48GT Clean Fossil Fuels: 37%

28GT

Technology Breakthrough Energy Efficiency: 36%

14GT

‘05 ‘10 ‘15 ‘20 ‘25 ‘30 ‘35 ‘ 40 ‘45 ’50 * Source: IEA

Technologies
Renewable Energy Solar PVs, Wind, H2/Fuel Cells, IGCC

Clean Fuels GTL, CTL, CCS

LED, Electricity IT, Energy Storage, Small-cogeneration, Heat Pumps,
Energy Efficiency Super Conductivity

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VISION & STRATEGY OF GREEN ENERGY INDUSTRY

Narrowing Gap from industrial countries via Selection & Concentration

Full-cycle supporting system from R&D to Export Industries

Strategy I Strategy 2 Strategy 3 Strategy 4

Strategic Selection Market-oriented Market Creation Infrastructure
of 9 Promising Tech. Development Export Industry Building
Techs
 marketability  Tech development  Leading demand in  Gov. & private joint
technology, target & roadmap the public sector implementation
urgency  Diversification of  Support business system
 Classifying early technology gain entities in  Securing stable
engine growth and  Combination of R&D developing foreign funding sources
next growth engine and validation market  Training experts

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Strategic Selection of 9 Promising Technologies

Group I: Early Growth Engine

Rapidly growing world market with Solar PVs

solid foundation of domestic industry Wind
LED
 Full support of industrialization Electricity IT

Group II: Next Growth Engine

Gaining a technological competitive edge H2/Fuel Cells

because of great market potential GTL/CTL
IGCC
Investment focused on R&D and
CCS
technology validation Energy Storage

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 LARGE SCALE DEPLOYMENT OF NRES
Govn‟t-driven  Encouraging the private sector‟s initiative
Mandatory use of NREs in the public sector
A wide uptake of a variety of NREs

2004-7 2008-12 2012-20 Total

Goal (unit) 17,400 94,150 913,000 1,024,550

Budget (109₩) 2,280 13,300 137,530 153,080

Village-based, local autonomy, “Green Village” Award (2010)

Unit: village, site: NRE mix to be decided based on village & sites

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 INSTITUTIONAL ARRANGEMENTS-1
• Voluntary NRE investment (RPA)RPS (2012)
GenCos • Share of total power generation to be estimated
Supply
• recommending biodiesel mix RFS (2012) available feedstock
Petro • 3% by 2012, 7% by 2020

 RPA: Renewable Portfolio Agreement, RPS: Renewable Portfolio Standards, RFS: Renewable Fuel Standards

New •NRE integrated design of government complexes, innovative

Town cities, new towns: gov‟nt complexes (10%)

Public • Over 5% of total energy load with NRE, scale up annually (2012)
Design Building  (current) 5% of construction costs with NRE facilities

Private • Introduction of NREs certificates (2010)

Building  NRE use over 5% of total energy load eligible for incentives

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 INSTITUTIONAL ARRANGEMENTS-2
Administrative System
Inter-ministerial • Voluntary NRE investment (RPA)RPS (2012)
Cooperation • Recommendation of biodiesel mix  mandatory: RFS (2012)

Enhanced Role of • NREs in conjunction with Local industry/energy clustering

Local Autonomy • Local autonomy‟s ordinance

Regulation Reform
Identify barriers to be removed for a wider uptake of NREs

Allow rooftop PVs installation within zones of limited M of Land, Transp,

development Maritime Affairs

Offshore wind, tidal power: occupation & use of public water M of Land, Transp,
surface to be extended Maritime Affairs
Organic waste biogas to get access to city gas pipeline MKE, ME
Permit wind turbine installtion above top areas of mountains M of Forest

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 LONG-TERM VISION OF NRES
Fostering Domestic NRE industry via indigenization of core technologies
– Cooperation b/w large enterprizes and SMEs  industry cluster of systems, components, and
materials
Domestic NRE industry export industry global business entities
– Solar PVs: semi-conductor, display industry
– Wind: construction and heavy industry
– H2/Fuel Cells: leading companies, components large scale technical validation and
demonstration projects

Today 2012 2030

PV  Rooftop PV cell mass  Development of Next  Increased market share

production generation PV Cells by exporting NREs
 MW class turbine  5-6MW turbine  Export industry of NRE
Wind
Development commercialized technologies & system
 Project center  Commercial proto-type  Fostering new growth
IGCC
established of 300MW engine via NREs
 Technological  Indigenization of core  Pioneering in overseas
H2/FC
validation & Demo components market

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 CONCLUDING REMARKS
Increasing role of NREs in response to climate change, energy
security, equity problems
– Sustainable energy system calls for a wider uptake of NREs
– UNFCCC & Kyoto Protocol: increased use of RE to reduce GHG emissions
NRE as a green growth engine leads to domestic & export
industry with indigenous technologies
Selection & concentration strategy for promising technologies:
market and industry development (domestic and export)
Market-based programs emerge as policy tools , making NRE
industry more viable
– Command & control + Incentive approaches: RPS (cap & trade)
– Green Energy Market: green certificates trading in conjunction with the
Kyoto Protocol (CDM)

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27
ABOUT THE KEEI
Goals and Missions
Functions and Tasks
Organization

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 GOALS AND MISSIONS
The KEEI was established as a government-affiliated
research institute in order to contribute to the national
energy policy-making by collecting, analyzing, and
disseminating energy information and issues
Missions
– Collect, analyze, and provide global energy information
– Forecast mid- to long-term demand and supply of energy
– Research on the structural reform and strategies of energy industries
– Policy research for addressing climate change
– Policy development for local and renewable energy
– Research coop with industries, academia on energy-related issues
– Provide educational programs on energy market trends

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 FUNCTIONS AND TASKS
Energy Policy Study
– National energy policies
– Local autonomies
– The public
MKE
Local Autonomy
Expertise Consulting and
Advising
– Export market & investment
strategies for energy business Energy
– Int‟l trade of energy products
Policy
– Feasibility study of energy proj.
Education and Outreach Energy-Related
– Training of energy experts KEEI Business Entities,
Institutes
– Performance Measurement

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 ORGANIZATION
• Center for Climate Change
Research Dept.
• Electricity & Gas Div
Energy Policy
Consulting Functions Research Group
• District Heat & Power Div
• New & Renewable E. Div
• Local Energy Div

Strategies R&D • Energy Inf. Analysis Div

Ctr for Energy • Energy Statistics Div
• Oil Market Analysis Div
Inf. & Stat. • Energy Demand Forecast
Process Planning Div
• Strategy Planning Div.
• Regional Cooperation Mgt
Ctr for E. Research Div.
Trend Mgt Mkt Research Int‟l Studies • Resources Development
Research Div
Training • Int‟l cooperation Div.

Logistics Dept of Research Dept of Admin.

Planning & Coord. Support

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