Priorities for New & Renewable Energy Technology

1. Priorities for New & Renewable Energy Technology in Korea November, 2005 New & Renewable Energy Center Korea Energy Management Corporation

2. Ⅰ Ⅱ Ⅲ Ⅳ Ⅴ Basic Plan for NRE Solar PV Wind Power Hydrogen & Fuel Cells International Cooperation contents

3. 11 types are included in the promotion Act for NRE Ⅰ. Basic Plan for NRE

4. 5% of total Primary Energy Supply by 2011 Shares 2.1% 3% 5% Ⅰ. Basic Plan for NRE Goals for New and Renewable Energy supply Resources 2003 2006 2011 Waste 68.5% 72.1 % 56.5 % Hydro 27.6% 15.5 % 9.1 % Bio 3.0% 7.1 % 7.9 % Solar Thermal 0.7 % 1.5 % 2.4 % - - 1.1 % Fuel Cells Photovoltaic 0.1 % 0.3 % 2.6 % Wind 0.1 % 1.8 % 9.8 % Geothermal - 0.2 % 1.2 %

5. Strategic Approach to Technology Development Solar PVs Hydrogen/ Fuel cells closing the technology gaps with developed countries, and deploying distributed power generation Ⅰ. Basic Plan for NRE • Three Major Technologies • are selected for the investment cost-effective • have great market potential • Implementing projects as consortia to integrate the stages of development, • evaluation, verification, and deployment Creating a solar PV industry based on the domestic hi-tech semiconductor industries Wind Power Indigenizing advanced technologies to promote alternative power sources

6. Annual R&D Budget Plan R&D Budgets for Goal Achievement by year Ⅰ. Basic Plan for NRE 347 303 263 224 184 148 128 103 86 (Unit : Million US$, 1 US$ = 1,100 won) Source : MOCIE (2003)

7. Current Status of Solar PV R&D Major Achievements Project Investment Ⅱ. Solar PV (1 US$ = 1,100 won) • Intensive effort started in 1988 under Promotion Act for New & Renewable Energy Development - Total budget(1988-2004) : $41.9 million (government: $26.0 million) - Annual budget(2005) : 13.5 million • Key technologies have been developed and commercialized in cells, batteries, and inverters. • Total Capacity of solar PV systems is 8.5MW(2004) - share of 0.1%(2,468 toe) in the total new & renewable energy use

8. Cost reduction through R&D by year 2010 Ⅱ. Solar PV Targets of Solar PV • Cell efficiency : 12%(‘03)  18%(‘10) • System cost : $13,640/kW(‘03)  $5,450/kW(‘10) Total Installation of 1.3 GWp by year 2012 • • Residential homes : 10,000 unit (‘06)  100,000 (‘12) • • Commercial : 500 unit (‘06)  700 (‘12) • • Industry : 1,000 unit (‘06)  1,400 (‘12) 7% world market share by year 2010 • • The sales vol. amounting to $3 billion

9. Major Ongoing R&D Projects Ⅱ. Solar PV ■ Cost reduction technology for single crystalline Si substrate - Period : 2004 ~ 2007 - Total budget : 4.3 million $ ■ BIPV module development - Period : 2004 ~ 2007 - Total budget : 4.9 million $ ■ Improvement of crystalline Si cell efficiency - Period : 2005 ~ 2008 - Total budget : 1.3 million $

10. Current Status of Wind Power R&D Project Investment Major Achievements Ⅲ. Wind Energy (1 US$ = 1,100 won) • Intensive effort started in 1988 under Promotion Act for New & Renewable Energy Development - Total budget(1988-2004) : $28.7 million (government: $17.8 million) - Annual budget(2005) : $9.8 million • 750kW Wind Power System(Under the Field Test) • Total capacity is 28.9MW(2004) in 136 units - share of 0.2%(11,861 toe) in the total new & renewable energy use

11. Target of Wind Energy R&D Goal Dissemination Goal Ⅲ. Wind Energy • Make Wind Turbine System - 1MW(’05)  1.5MW(’08)  3MW(’12) • Decline in system unit cost - 1,200$/kW(’03)  600$/kW(’12) • Decline in generation cost - 10￠/kWh (’03)  3￠/kWh (’12) • On shore Wind Turbine System - 207MW(’06)  1,587MW(’12) • Off shore Wind Turbine System - 5MW(’06)  680MW(’12)

12. Major Ongoing R&D Projects Ⅲ. Wind Energy ■ Development of 2MW multibrid wind power system - Period : 2004 ~ 2007 - Total budget : 8.8 million $ ■ Design of 3MW wind power system for off shore - Period : 2004 ~ 2006 - Total budget : 0.9 million $ ■ Construction of MW scale off shore wind power demonstration - Period : 2005 ~ 2009 - Total budget : 15 million $ (expected)

13. Current Status of Hydrogen/Fuel Cell R&D Major Achievements Project Investment Ⅳ. Hydrogen & Fuel Cells (1 US$ = 1,100 won) • Total budget(1988-2004) : $107.8 million - Hydrogen : $14.5 million (government: $19.5 million) - Fuel Cell : $93.3 million (government: $49.2 million) • Annual budget(2005) : $22.1 million • Development of 3kW PEMFC for RPG • Development of 100kW MCFC • Development of 80kW class PEMFC hybrid FCV

14. Target of H2 & fuel cells R&D Goal Dissemination Goal Ⅳ. Hydrogen & Fuel Cells • Development of 3kW PEMFC for residential use( ~’06) • Development of 250kW MCFC for power generation( ~’09) • Development of 50kW PEMFC for building( ~’12) • RPG for residential use : 10,000 units ( ~’12) • PEMFC for buildings : 2,000units ( ~’12) • MCFC for utilities : 300units ( ~’12)

15. Major Ongoing R&D Projects Ⅳ. Hydrogen & Fuel Cells ■ Demonstration of 30 Nm3/hr hydrogen station - Period : 2004 ~ 2008 - Total budget : 7.7 million $ ■ Development of 200kW PEMFC for bus - Period : 2005 ~ 2010 - Total budget : 44.5 million $ ■ Hydrogen & Fuel cell standardization - Period : 2004 ~ 2007 - Total budget : 0.4 million $

16. Ⅳ. Hydrogen & Fuel Cells President’s Test-Driving (March 11, 2005)

17. Multilateral Cooperation Bilateral Cooperation Ⅴ. International Cooperation Strengthening International cooperation • APEC, IPHE, IEA, REEEP etc. • Collaborative R&D Projects - Korea-China : 2004 ~ 2007 →Field Test and Demonstration of 100kWp PV system in Tibet, China - Korea-Mongolia : 2003~ 2005 →Development and Utilization of Renewable Energies for Electrification in Gobi-desert - IPHE project : 2006 ~ → Advanced membrane, Fuel Cell Testing, Safety, Solid State Hydrogen Storage

18. Korea