Korea Energy Economics Institute Sangmin Cho

Korea Energy Economics Institute Promotion Act of NRE Deployment 3 rd National NRE Basic Plan of Korea Status of NREs in Korea Contents 2

Korea Energy Economics Institute 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

Korea Energy Economics Institute 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 SolarWaste energy Bio energy HydroGeo thermal MarineWindHeat pump New energy IEA ○○○○○○○ XX EU ○○○○○○○○ X Japan ○○○○○○○○ X Korea ○○○○○○○ X ○

Korea Energy Economics Institute 5 Promotion Act of NRE Deployment National NRE Basic Plan  We establish the National NRE Basic Plan every five years 2 nd Basic Plan : 2003 (actual 1 st Basic Plan) 3 rd Basic Plan : 2008 (currently implementing) 4 th Basic Plan : 2013 (developing)  Time horizon of the National NRE Basic Plan is at least 10 years 2 nd Basic Plan : 2003~ rd Basic Plan : 2008~ th Basic Plan : 2013~2035

Korea Energy Economics Institute 6 3 rd National NRE Basic Plan Goals & Strategies in the 3 rd NRE Basic Plan Strategy I Industrialization Strategy 2 Larger Deployment Strategy 3 Infrastructure Strategy 4 Market Mechanism Sustainable Energy Development via New & Renewable Energy Goal I : NRE Deployment 11% by 2030 Goal 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

Korea Energy Economics Institute 7 3 rd National NRE Basic Plan 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 35, % 3.5% 6.1% 11.0% 5.7% 4.2% 3.1% Policy BaU 10 3 TOE

Korea Energy Economics Institute 8 3 rd National NRE Basic Plan 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 E % PVs/Wind % Bau2030 Policy 2.2% 5.7% 11% 10 3 TOE 10,000 15,000 20,000 25, ,000 35,000 Solar Th Solar PVs Wind Bio Hydro Geotherm Ocean Wastes % Waste E %

Korea Energy Economics Institute 9 3 rd National NRE Basic Plan Road Map for NRE Deployment Sunsetting of FIT Million Green Homes Program RPS Feed-In-Tariff 100,000 Solar PVs Green 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)

Korea Energy Economics Institute 10 3 rd 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

Korea Energy Economics Institute Status of NREs in Korea NRE Deployment  The proportion of NRE among TPES was 2.61% in 2010 : 0.24%p higher than in  Waste and hydro account for the majority of the supplied energy among NREs Waste and hydro power account for more than 82% of NREs Waste and hydro power account for more than 82% of NREs Bio 11.0% Wind 2.6% PVs 2.4% Fuel Cells 0.6% Geothermal 0.5% Solar Thermal 0.4% Bio 11.0% Wind 2.6% PVs 2.4% Fuel Cells 0.6% Geothermal 0.5% Solar Thermal 0.4% Waste 70.9% Waste 70.9% Hydro 11.6% Hydro 11.6%

Korea Energy Economics Institute 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 Korea 12 (Accumulation)

Korea Energy Economics Institute Sangmin Cho Associate Research Fellow New and Renewable Energy Division Korea Energy Economics Institute ☎