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New & Renewable Energy Policy

New & Renewable Energy Policy. in Korea. November, 2004. KEMCO Korea Energy Management Corporation. Ⅸ. Ⅷ. Ⅰ. Ⅱ. Ⅶ. Ⅲ. Ⅳ. Ⅵ. Ⅴ. Energy Status (2003). Category of NRE. History of NRE Policies. Investment For NRE. NRE Policies. Achievements In NRE. Budget Plan.

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New & Renewable Energy Policy

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  1. New & Renewable Energy Policy in Korea November, 2004 KEMCO Korea Energy Management Corporation

  2. Ⅸ Ⅷ Ⅰ Ⅱ Ⅶ Ⅲ Ⅳ Ⅵ Ⅴ Energy Status (2003) Category of NRE History of NRE Policies Investment For NRE NRE Policies Achievements In NRE Budget Plan Dissemination Target NRE Village Power Project contents

  3. Continuous Increase in Energy Consumption Average Growth Rate of Energy Consumption (’91~’01) Growth Trend of Energy Consumption 215.2 Million TOE 6.9% 208.6 192.9 5.2% 6.4% 3.1% 43.9 1.6 1.6 1.0 0.1 Ⅰ. Energy Status (2003) Source : KEMCO (2004) Source : IEA (2001)

  4. High dependency on energy imports Energy Imports (2003) Classification ’80 ’90 ’00 ’02 ’03 Energy Imports 73.5 87.9 97.2 97.2 96.9 Oil in total energy 61.3 53.8 52.0 49.1 47.6 Import from the Middle East of total oil 98.8 73.7 76.9 73.3 79.5 Ⅰ. Energy Status (2003) • Imports about 97% of the energy used • More than 79% of oil from the Middle East Source : KEMCO (2004)

  5. 11 types are included in the promotion Act for NRE Ⅱ. Category of NRE

  6. Promulgation of the Promotion Act for NRE Development • Making the legal basis of NRE Technology Development 1987 • Amendment of the Promotion Act for NRE Development, • Utilization & Dissemination • Making the legal basis of NRE Dissemination 1997 • Amendment of the Promotion Act for NRE Development, • Utilization & Dissemination • Including Obligation to the Public Office, Certification, F-I-T etc. 2002 • 10 Year National Basic Plan For NRE Technology • Development and Dissemination • Target : 3% by 2006, 5% by 2011 2003 Ⅲ. History of NRE Policies

  7. Budget from 1988-2003 amount to a total of 642.3 billion won R&D : 183.5billion, Subsidies : 105.2 billion, Loans : 353.5 Classification Government Private Total Solar Thermal 13,879 4,145 18,024 Photovoltaic 27,840 16,637 44,477 Bio 20,542 11,095 31,637 Waste 15,470 15,624 31,094 R & D coal liquefaction,gasification 17,682 11,644 29,326 Wind 17,615 10,966 28,581 Hydrogen / Fuel Cell 50,904 42,915 93,819 ETC 19,582 2,512 22,094 Sum 183,514 115,538 299,052 Subsidy 105,236 3,525 108,761 Loans 353,564 - 346,773 Total 642,314 119,063 761,377 Ⅳ. Investment For NRE

  8. Ratio on NRE/Total Energy Consumption is 2.1% Very low compared to advanced countries Ⅴ. Achievements In NRE 10.4% 7.0 4.3 2.6 3.0 2.1% Source : Renewables Information, IEA, 2003. (Figure of Korea is from 2003, other countries from 2001)

  9. Waste & Hydro power accounted for the most Amount And percentage of supply by individual energy resources Resource Details Amount (100toe) % Waste 460 units in Seoul, Gyeonggi, Busan etc 3,039.3 68.5 Hydro Large Hydro (16 units,1,531MW), small hydro (33 units, 48MW) 1,225.6 27.6 Bio 110 units including landfill gas, food-processing 131.1 3.0 Solar Thermal 187,000 heating system, 2700 medium- and Large equipment and facilities 32.9 0.7 Wind 115 unit in Jeju and the Northen Jeolla povince 18MW 5.2 0.1 Photovol-taic Telephone facilities, communications and Streetlighting 6MW 1.9 0.1 Ⅴ. Achievements In NRE

  10. 5% of total energy Consumption by 2001 Annual Target (%) Resources 2003 2006 2011 Waste 68.5 71.3 57.3 Hydro 27.6 17.1 12.3 Bio 3.0 7.1 7.8 Solar Thermal 0.7 1.5 2.4 Photovoltaic 0.1 0.6 2.5 Wind 0.1 2.2 9.7 Geothermal - 1.1 8.0 Goal 2.1 3 5 Ⅵ. Dissemination Target

  11. 9.1 trillion won will be used for NRE By 2011 Annual Budget Plan 2004 2005 2006 2007 2008 2009 2010 2011 Total R & D 950 1,130 1,405 1,625 2,025 2,406 2,895 3,335 15,825 Subsidies 1,670 2,110 3,412 3,824 5,352 7,217 8,888 12,108 44,581 Loans 900 1,340 1,800 2,280 3,300 4,100 6,300 10,600 30,620 Total 3,520 4,580 6,617 7,729 10,677 13,777 18,083 26,043 91,026 Ⅶ. Budget Plan • R & D : 1.5 trillion, Subsidies : 4.4 trillion, Loans : 3 trillion (unit : 100million won)

  12. 1. R & D and Infrastructure R & D Maximization of R&D investment effect by priority selection and concentration Hydrogen / fuel cells, photovoltaic and wind will receive major support • 1,000 people from industry, academia and research institutes will be participate • 250 billion won for five years (2004-2008) will be invested Ⅷ. NRE Policies

  13. Ⅷ. NRE Policies 1. R & D and Infrastructure The infrastructure • Establishing a master plan and a mid-to-long-term vision • on the “hydrogen economy” • Evaluating performance of developed products, • carrying out field tests • -expending research complexes for field tests and • institutions for performance evaluation • Strengthening International cooperation • at multilateral and bilateral levels • -e.g. Korea-Mongolia joint research project, IPHE, IEA etc

  14. 2. Dissemination programs Mandatory programs for NRE facilites Installment at public Institutions 100,000 photovoltaic house programs by 2012 Ⅷ. NRE Policies • When constructing a public building exceeding 3,000 square meters, • 5% of total construction costs should be used • in installing NRE facilities. • The government covers 70% of the installment coats and the user will • cover the remaining 30%

  15. 2. Dissemination programs Establishment of ‘Green Village’ General subsidies program for dissemination of NRE facilities Feed-in Tariff for NRE electricity generation Ⅷ. NRE Policies • A village made up of around 50 houses that depend wholly on NRE. • The support measures are equal to that of the program for • distribution of photovoltaic houses. • Subsidies which are currently provided to electricity generated from • NRE. They are financed with the government funds. • The subsidy program will be expanded to bio and IGCC in the Future

  16. 2. Dissemination programs Fixed Prices of individual resource (won / Kwh) Loan program Resource Photovol-taic Wind Small hydro Landfill gas Waste Tide power Fixed Price 746.40 107.66 73.69 65.20 SMP+CP 62.81 Ⅷ. NRE Policies • 10-year installment payment with a five-year grace period on annual • interest rate of 3.5% (floating interest rate)

  17. Ⅸ. NRE Village Power Project DURE-Gobi Project Development and Utilization of PV/Wind Power Generation Systems for Rural Electrification in Gobi Desert

  18. Korea-Mongolia International Cooperation  Jun 2003 – May 2005(24 Month)  Diversification of NRE Technology Cooperation through the Expansion of Bilateral Cooperation with Mongolia  Solar Ger System for Desert Area Electrification  System Design Optimization, Field Test and Demonstration of Photovoltaic-Wind Hybrid Generation for Village Electrification Ⅸ. NRE Village Power Project

  19. System Illustration 50W (DC Type) General System for pastorals ×3 area • DC provision for low price • bulb(12W), mono TV(20W), radio(8W) 150W (AC Type) High Level System for Pastorals ×3 area Solar Home System • AC provision for 1house 2Ger or high level household appliances • bulb(12W) 2~3, color TV(50W), radio(8W) Ⅸ. NRE Village Power Project

  20.  System Illustration 8kW (AC Type) PV 5kW + Wind 3kW ×1 area • Small village or public buildings(school etc) electrification • Pump power source for desert irrigation Public Use System 100W (AC Type) ×6 area High Voltage Discharge Lamp • Street Lamp along the Road PV Street Lamp Ⅸ. NRE Village Power Project

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