korea energy economics institute sangmin cho. korea energy economics institute promotion act of nre...

Korea Energy Economics Institute

Sangmin Cho


Promotion Act of NRE Deployment

3rd National NRE Basic Plan of Korea

Status of NREs in Korea

ContentsContents

2

Korea Energy Economics Institute 3

Promotion Act of NRE DeploymentPromotion Act of NRE Deployment

History of the Promotion Act of NRE Deployment In 1987 the Korean government promulgated the Promotion Act of NRE

Development (for R&D activity enhancement)

In 1997 the Korean government fully amended the previous act, and promulgated the New Promotion Act of NRE Development and Deployment (for stronger NRE utilization and dissemination)

Definition of NRE Sources We define new and renewable energy by 11 categories in accordance with

the act

• 8 renewable energies : Solar PVs, Solar Thermal, Waste energy, Bio energy(LFG, Bio-diesel, etc.), Hydro, Geothermal, Marine, Wind

3 new energies : Hydrogen, Fuel Cells, Coal Liquefaction/Gasification



Definition of NRE Sources Categorization for renewables in Korea is different from that of other

countries and organizations

• New energies (Hydrogen, Fuel Cells, Coal Liquefaction/Gasification) are included in our categories of NRE

To enhance R&D activities for new energies, because they can reduce the use of fossil fuels by enhancing energy efficiency

Solar Waste energy

Bioenergy

Hydro Geothermal

Marine Wind Heat pump

Newenergy

IEA ○ ○ ○ ○ ○ ○ ○ X X

EU ○ ○ ○ ○ ○ ○ ○ ○ X

Japan ○ ○ ○ ○ ○ ○ ○ ○ X

Korea ○ ○ ○ ○ ○ ○ ○ X ○



National NRE Basic Plan We establish the National NRE Basic Plan every five years

• 2nd Basic Plan : 2003 (actual 1st Basic Plan)

• 3rd Basic Plan : 2008 (currently implementing)

• 4th Basic Plan : 2013 (developing)

Time horizon of the National NRE Basic Plan is at least 10 years

• 2nd Basic Plan : 2003~2013

• 3rd Basic Plan : 2008~2030

• 4th Basic Plan : 2013~2035


33rdrd National NRE Basic Plan National NRE Basic Plan

Goals & Strategies in the 3rd NRE Basic Plan

Strategy IStrategy I

Industrialization

Strategy 2Strategy 2

Larger Deployment


Infrastructure


Market Mechanism

Sustainable Energy Development via New & Renewable Energy

Goal I : NRE Deployment 11% by 2030Goal I : NRE Deployment 11% by 2030Goal II : Fostering NREs as Green Growth IndustryGoal II : Fostering NREs as Green Growth Industry

Validation/Demonst-ration Complex

Codes & Standards Export Industry

Million Green Homes NRE Design in Bldg Larger Role of Local

Autonomies

Finance mechanism & funding

Removing barriers

Renewable Portfolio Standard

Renewable Fuel Standard



Goal for NRE Deployment Two times higher than BaU(Business as Usual) scenario

• Business As Usual : Reference– Continuation and maintenance of the current policy

• Strengthened Policy : Goal– Strengthening R&D and deployment policy

10,000

15,000

20,000

25,000

5000

30,000

35,000

2008 2012 2020 2024 20282016 2030

2.6%2.6%3.5%3.5%

6.1%6.1%

11.0%11.0%

5.7%5.7%

4.2%4.2%

3.1%3.1%

Policy BaU Policy BaU

103TOE



Two strategic approaches for NRE Deployment Deployment of NREs based on Cost-effectiveness : Liquid/Solid Bioenergy,

Ocean Energy, etc. Strategic R&D and deployment: Wind, Solar PVs, H2/Fuel Cells

As a result, the energy mix in NRE supply will be shifted into a balanced one from a waste energy oriented one

Bio EBio EBio EBio E %% %%

PVs/WindPVs/WindPVs/WindPVs/Wind %% %%

2006 2030 Bau 2030 Policy

2.2%2.2%

5.7%5.7%

11%11%

103TOE

10,000

15,000

20,000

25,000

5000

30,000

35,000

Solar ThSolar PVs

WindBio

HydroGeotherm

OceanWastes

%%Waste EWaste EWaste EWaste E %%

2008 2030



Road Map for NRE Deployment

Sunsetting of FIT

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Million Green Homes Program

RPSFeed-In-Tariff

100,000 Solar PVsGreen Villages

Loan for NRE Facilities Installation & Investment

Local Autonomy’s Subsidy Program

Gradual Reduction in SubsidySubsidy to NRE Facilities

RFS (BD, E)Biofuel Exhibition Deployment

Strengthening of NRE Standardization/Certification

Obligation of Public Building (Energy Load) Obligation of Public Building (Construction cost)



Goal for NRE Industrialization One of the world’s top 5 renewable energy leaders by 2015 15% market share by 2015


Status of NREs in KoreaStatus of NREs in Korea

NRE Deployment The proportion of NRE among TPES was 2.61% in 2010 : 0.24%p higher

than in 2007. Waste and hydro account for the majority of the supplied energy among

NREs

Waste and hydro power account formore than 82% of NREs

Waste and hydro power account formore than 82% of NREs

< Composition of NREs (2010) >< Composition of NREs (2010) >

<NRE Deployment (thou. toe)>

Bio11.0%

Wind2.6%

PVs2.4%

Fuel Cells0.6%

Geothermal0.5%

Solar Thermal0.4%

Bio11.0%

Wind2.6%

PVs2.4%

Fuel Cells0.6%

Geothermal0.5%

Solar Thermal0.4%

Waste70.9%Waste70.9%

Hydro11.6%Hydro11.6%

11

<NRE Share in TPES (%)>

2005 2006 2007 2008 2009 2010

2005 2006 2007 2008 2009 2010


NRE Industrialization

Major source of growth engine for SME and job creation

• Manufacturers : 100 (2007) 215 (2010) (2.2 times over last 3 yrs)

• Jobs : 3,691 (2007) 13,380 (2010) (3.6 times over last 3 yrs)

New strategic business expansion area for our national economy

Status of NREs in KoreaStatus of NREs in Korea

12

<No. of Manufacturers> <No. of Jobs> (Accumulation)


Sangmin Cho

Associate Research Fellow

New and Renewable Energy Division


☎ +82-31-420-2223 +82-10-9031-8084

[email protected]

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