South Korea Renewables Report Q1 2013
- ID: 2299512
- November 2012
- Region: South Korea
- 31 pages
- Business Monitor International
Our short term outlook for renewable energy in South Korea is still extremely bullish, as the country’s public and private sectors are taking decisive steps to develop the sector. Having said that, a delay in the country’s flagship offshore wind project has prompted us to slightly revise down our longterm renewable forecasts. Despite this downward revision for offshore wind and the significant potential for growth among the other renewable technologies (excluding geothermal energy), we believe that offshore wind energy will still be the main driver of growth in the renewable sector over the long-term.
We are forecasting non-hydro renewable generation in South Korea to grow by 17.1% in 2013. This robust growth will be driven by all of the various types of renewable energy generation, as the government attempts to diversify the country’s energy mix through various programmes and targets.
This quarter, we have revised down our long term growth forecasts for non-hydropower renewable generation from 23.1% to 20.0% between 2013 and 2017. This is because of a lack of concrete progress on the country's flagship 2.5 gigawatt (GW) offshore wind farm. Here are the key trends and regulations changes in the industry:
- South Korea replaced its feed-in tariff system with a renewable portfolio standard (RPS) which will require the 14 state-run and private power utilities with capacities greater than 500MW to generate 4% of energy from renewables by 2015, and 10% by 2022.
- An emissions trading scheme (ETS) was passed unanimously by the country’s parliament in order to tackle a growing emissions problem. The cap-and-trade scheme will come into effect in 2015, and will impose a punishment on companies exceeding emission limits by a maximum of KRW100,000 (US$87.5).
- Offshore wind energy is set to grow tremendously, with a 2.5GW offshore farm being planned on the southwest coast of the country. The project comes at a cost of US$9bn, and will be implemented in three stages, with the first 100MW being brought online by 2014.
- Korea Western Power (WP) announced their intention to KRW1.22tn (US$1.07bn) to build 20 tidal power plants from now to 2014, with a total capacity of 520MW. This follows the country’s inauguration of the 254MW Sihwa lake tidal power station, which is the largest plant in the world.
- South Korean conglomerate Hanwha purchased German solar panel manufacturer Q-Cells in August 2012. The company has acquired a number of solar equipment manufacturers in recent years, including Chinese polysilicon producer Solarfun and several American solar start-ups. SHOW LESS READ MORE >
BMI View 5
SWOT Analysis 6
South Korea Renewables SWOT 6
Industry Forecast Scenario 7
Table: South Korea Total Electricity Generation Data And Forecasts, 2010 - 2017 7
Table: South Korea Total Electricity Generation Long Term Forecasts, 2015 - 2022 9
Table: South Korea Electricity Generating Capacity Data And Forecasts, 2010 - 2017 11
Table: South Korea Electricity Generating Capacity Long Term Forecasts, 2015 - 2022 12
Renewables Projects Database 17
Table: Major Projects – Renewables 17
Sustainable Energy Policy and Infrastructure 18
Targets (Renewables and Emissions) 18
Subsidies And Feed-In Tariffs 19
Risk/Reward Ratings 21
South Korea Risk/Reward Ratings 21
Competitive Landscape 22
Korea District Heating Corporation (KDHC) 22
Korea Hydro & Nuclear Power (KHNP) 22
Korea Southern Power (Kospo) 23
POSCO Corporation 23
Glossary of Terms 24
Table: Glossary of Terms 24
Methodology and Sources 25
Industry Forecasts 25
Renewables Industry - Data Methodology 26
Generation Data 26
Electricity Generation Capacity Data 26
Power Risk/Reward Ratings Methodology 27
Table: Power Risk/Reward Indicators 29