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The 3 rd National New and Renewable Energy Basic Plan of Korea

The 3 rd National New and Renewable Energy Basic Plan of Korea. Sangmin Cho. Contents. Promotion Act of NRE Deployment 3 rd National NRE Basic Plan of Korea Status of NREs in Korea. Promotion Act of NRE Deployment. History of the Promotion Act of NRE Deployment

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The 3 rd National New and Renewable Energy Basic Plan of Korea

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  1. The 3rd National New and Renewable Energy Basic Plan of Korea Sangmin Cho

  2. Contents Promotion Act of NRE Deployment 3rdNational NRE Basic Plan of Korea Status of NREs in Korea

  3. Promotion 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

  4. Promotion Act of NRE Deployment • 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

  5. Promotion Act of NRE Deployment • 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

  6. 3rd National NRE Basic Plan Sustainable Energy Development via New & Renewable Energy Goal I : NRE Deployment 11% by 2030 Goal II : Fostering NREs as Green Growth Industry Strategy I Industrialization Strategy 2 Larger Deployment Strategy 3 Infrastructure Strategy 4 Market Mechanism • Finance mechanism & funding • Removing barriers • Renewable Portfolio Standard • Renewable Fuel Standard • Validation/Demonst-ration Complex • Codes & Standards • Export Industry • Million Green Homes • NRE Design in Bldg • Larger Role of Local Autonomies • Goals & Strategies in the 3rd NRE Basic Plan

  7. 2024 2030 2016 2028 2020 2008 2012 11.0% 35,000 30,000 25,000 20,000 6.1% 5.7% 15,000 3.5% 4.2% 2.6% 10,000 3.1% Policy BaU 5000 3rd National NRE Basic Plan 103TOE • 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

  8. 2030 Policy 2006 2030 Bau 11% 35,000 30,000 25,000 5.7% 20,000 15,000 10,000 2.2% 5000 103TOE 3rd National NRE Basic Plan Bio E Waste E PVs/Wind 75 33 8.1 31 3.1 22.4 % % % % % 2008 2030 Solar Th Solar PVs Wind Bio Hydro Geotherm Ocean Wastes % • 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

  9. 3rd National NRE Basic Plan 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 100,000 Solar PVs Million Green Homes Program Green Villages Subsidy to NRE Facilities Gradual Reduction in Subsidy Loan for NRE Facilities Installation & Investment Local Autonomy’s Subsidy Program Obligation of Public Building (Construction cost) Obligation of Public Building (Energy Load) Feed-In-Tariff Sunsetting of FIT RPS Biofuel Exhibition Deployment RFS (BD, E) Strengthening of NRE Standardization/Certification • Road Map for NRE Deployment

  10. 3rd National NRE Basic Plan • Goal for NRE Industrialization • One of the world’s top 5 renewable energy leaders by 2015 • 15% market share by 2015

  11. 2.24 2.24 2.13 2.13 Status of NREs in Korea <NRE Deployment (thou. toe)> < Composition of NREs (2010) > Waste and hydro power account for more than 82% of NREs 2005 2006 2007 2008 2009 2010 Bio 11.0% Wind 2.6% PVs 2.4% Fuel Cells 0.6% Geothermal 0.5% Solar Thermal 0.4% <NRE Share in TPES (%)> Waste 70.9% 2.61 2.61 2.50 2.50 2.43 2.43 2.37 2.37 Hydro 11.6% 2005 2006 2007 2008 2009 2010 • 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

  12. Status of NREs in Korea <No. of Jobs> (Accumulation) <No. of Manufacturers> • NRE Industrialization • Major source of growth engine for SME and job creation • Manufacturers : 100 (2007)  215 (2010) (2.2 timesover 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

  13. Sangmin Cho Associate Research Fellow New and Renewable Energy Division Korea Energy Economics Institute ☎ +82-31-420-2223 +82-10-9031-8084 smin0621@keei.re.kr Thank You

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