South Korea Renewable Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The south korea renewable energy market size is expected to grow from 44.59 gigawatt in 2025 to 49.37 gigawatt in 2026 and is forecast to reach 82.11 gigawatt by 2031 at 10.72% CAGR over 2026-2031. This report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

South Korea Renewable Energy Market Trends and Insights

Rapid Decline in Utility-Scale Solar LCOE Across South Korea

Utility-scale module prices fell 27% between early 2024 and 2025 as Hanwha Q CELLS and OCI ramped 50-100 MW projects, widened domestic wafer pulls, and benefited from tariff exemptions on imported trackers. Developers installed 1.2 GW of new solar capacity in 1H 2024, reinforcing South Korea's 71.3% solar lead in the renewable energy market. LCOE parity versus LNG is expected by 2026, shifting corporate buyers toward multi-megawatt PPAs. Despite a KRW 300.2 bn loss from oversupply, Hanwha's expanded Q ANTUM line underpins price competitiveness and secures future volume.

Mandatory REC Quotas Pushing Corporates Toward PPAs

The Renewable Portfolio Standard requires large producers to generate 25% of their energy from renewable sources by 2026, following the implementation of direct PPAs after the Electric Utility Act amendments. Hyundai’s 610 GWh, twenty-year deal exemplifies first-mover industrial demand and signals mounting pressure on peers to adopt renewable sourcing. While PPA electricity lacks REC eligibility, utilities now design hybrid structures that link certificates with hedged supply, broadening liquidity and stabilizing the South Korean renewable energy market.

Land Acquisition Challenges for Ground-Mounted Solar in Gyeonggi & Chungcheong

Setback ordinances of 100-1,000 m eliminate up to 70% of candidate plots and inflate build costs by 25%. Constitutional appeals filed in February 2025 target these rules as scientifically unfounded. Without repeal, capital will shift to rooftop or offshore wind, eroding solar’s current preeminence within the South Korean renewable energy market.

Other drivers and restraints analyzed in the detailed report include:

• Offshore Wind Port Infrastructure Subsidies Near Mokpo & Ulsan
• Grid Modernisation Investments (KEPCO Digital Twin Roll-out)
• Slow Environmental Impact Assessment Approval Cycle (Above 30 months)

Segment Analysis

Solar energy maintained a 70.62% share of the South Korean renewable energy market in 2025, yet wind’s 34.92% CAGR signals a shift. The South Korean renewable energy market size for offshore wind could exceed 26.3 GW by 2031 if the entire auction pipeline reaches financing. Removal of local-content quotas cut turbine CapEx by up to 20%, attracting Ørsted and Equinor, while CS Wind localised tower production. Hydropower, bioenergy, and geothermal energy remain niche options, given resource limits and the refocusing of subsidies.

A 15-MW turbine roll-out, floating-foundation pilots off Ulsan, and deeper water leasing rounds reinforce wind’s catching-up trajectory. The South Korea renewable energy market share for solar may narrow as port capacity, HVDC links, and corporate decarbonisation tilt spending toward higher-capacity-factor wind farms.

Complete Report Scope:

• By Technology
  • Solar Energy (PV and CSP)
  • Wind Energy (Onshore and Offshore)
  • Hydropower (Small, Large, PSH)
  • Bioenergy
  • Geothermal
  • Ocean Energy (Tidal and Wave)
• By End-user
  • Utilities
  • Commercial and Industrial
  • Residential

List of Companies Covered in this Report:

• Korea Electric Power Corporation (KEPCO)
• Korea Hydro & Nuclear Power Co., Ltd (KHNP)
• Korea Midland Power Co., Ltd (KOMIPO)
• Korea South-East Power Co., Ltd (KOSEP)
• Korea Western Power Co., Ltd (KOWEPO)
• Korea East-West Power Co., Ltd (EWP)
• Hanwha Q CELLS Co., Ltd
• Hanwha Corporation
• S-Energy Co., Ltd
• OCI Holdings
• POSCO Energy Co., Ltd
• SK E&S Co., Ltd
• CS Wind Corporation
• Doosan Enerbility Co., Ltd
• Ocean Winds Korea Co., Ltd
• Vestas Korea Co., Ltd
• Siemens Gamesa Renewable Energy Korea Ltd
• Orsted Korea Limited
• Equinor Korea Co., Ltd
• Gridwiz, Inc.
• Canadian Solar Inc.
• JinkoSolar Holding Co., Ltd

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support