1. Consulate General of Korea, San Francisco December 5. 2013 Lee Kwangho, Consul Korea’s Policies on Renewable Energy and Future Directions

2. Energy Status in Korea Contents Ⅰ Ⅰ Achievements to Date Ⅱ Ⅱ Ⅲ Ⅲ National Programs Future Directions Ⅳ

3. Energy Status in Korea Ⅰ Ⅰ

4. 8 th biggest energy consumer in the world (262.6Mtoe) Source: KEEI 5 th biggest importer, 68.7 billion USD (accounting for 56% of all energy import) Source: KEEI Energy Consumption Crude Oil Import CO 2 Emission 7 th biggest emitter in the world, 590Mtoe Source: European Commission’s Joint Research Center & PBL Netherlands Environmental Assessment Agency (2012) The Energy Status 146 bil USD (Cars + Semi-conduct ors + Shipbuilding) 171 bil USD (Energy) 4

5. Low Carbon Green Growth “As we go green, we generate money and jobs” Elements of Green Growth Green energy paradigm Contribution to the global community Improvement in quality of life Green technology as a new growth engine The Concept of GREEN GROWTH 5

6. RE : 8 Sources -PV, Solar Thermal, Wind, Waste, Bio (LFG, Bio-Fuels), Hydro, Geothermal, and Marine New Energy : 3 Sources - Fuel-cell, Hydrogen, Coal Liquefaction or Gasification RE : 8 Sources -PV, Solar Thermal, Wind, Waste, Bio (LFG, Bio-Fuels), Hydro, Geothermal, and Marine New Energy : 3 Sources - Fuel-cell, Hydrogen, Coal Liquefaction or Gasification Waste and Hydro Energy account for the majority (82.5%) Waste and Hydro Energy account for the majority (82.5%) Hydro 11.6% Hydro 11.6% Bio 11% Wind 2.6% PV 2.4% Fuel Cell 0.6% Bio 11% Wind 2.6% PV 2.4% Fuel Cell 0.6% Breakdown of NRE Share (2011) NRE Share in TPES (%) ’06’07’08’09 ’10 Waste 70.9% Waste 70.9% Annual Growth Rate : Annual Growth Rate : 7.0% (`06~`11) Prospect for the growth rate of each NRE source by 2030 PV (15%), Wind (18%), Bio (15%) PV (15%), Wind (18%), Bio (15%) Waste (4%), Hydro (2%) Increase Decrease ’11 2.75 New & Renewable Energy Status National NRE Supply Target : 11% by 2030 6

7. Ⅱ Achievements to Date

8. Strong Government Support Strong Government Support Active Participation of SMEs & Large Conglomerates Active Participation of SMEs & Large Conglomerates Establishment of the Industrial Ecosystem Establishment of the Industrial Ecosystem Building the value chain & business system based on the collaboration between SMEs & large conglomerates NRE industries are regarded as the main source of SMEs’ growth, job creation, and a new profitable area for large conglomerates NRE industries are regarded as the main source of SMEs’ growth, job creation, and a new profitable area for large conglomerates No. of Manufacturers No. of Manufacturers No. of Employees No. of Employees Sales (1 bil USD) Sales (1 bil USD) Exports (100 mil USD) Exports (100 mil USD) ’07 ’09 ’10 ’07 ’09 ’10 ’07 ’09 ’10 ’07 ’09 ’10 101 193 3,661 10,395 1.24 4.74 6.2 26.7 212 2.1 times 3.7 times 6.5 times 7.3 times 13,651 8.07 45.3 Achievements 8

9. PV Existing Industrial Ecosystem Existing Industrial Ecosystem Fostering the next-generation semiconductor Industry based on the mutual development of large and small companies and job creation Fostering the next-generation semiconductor Industry based on the mutual development of large and small companies and job creation New era of GW scale power production through an integrated production system from Poly silicon to system New era of GW scale power production through an integrated production system from Poly silicon to system Increasing exports in all areas such as materials and modules, including equipment and turnkey orders Increasing exports in all areas such as materials and modules, including equipment and turnkey orders Poly silicon (t) Poly silicon (t) Ingot/Wafers (MW) Ingot/Wafers (MW) Cells (MW) Cells (MW) ’07 ’09 ’10 ’07 ’09 ’10 ’07 ’09 ’10 ’07 ’09 ’10 Modules (MW) Modules (MW) Exports Equipment Export Large-scaled Plant Export Jusung Engineering (130 mil USD to China), Toptech (14.5 mil USD to China) Jusung Engineering (130 mil USD to China), Toptech (14.5 mil USD to China) Samsung C&T Corp. (500MW, Canada; 130MW,US) SDN (45MW, Bulgaria) Hyundai Heavy Industries Co. (175MW, US) Samsung C&T Corp. (500MW, Canada; 130MW,US) SDN (45MW, Bulgaria) Hyundai Heavy Industries Co. (175MW, US) ’04 ’07 ’10 (Unit: Million USD) 0 0 17,100 31,600 200 1,000 1,915 36 921 1,831 173 1,140 2,908 6 6 142 3,744 ’09 1,723 9

10. Wind Model sector for SME & LE to co-prosper Model sector for SME & LE to co-prosper Building industrial structure with the collaboration between SMEs (for components) and large enterprises (for finished goods) There is a growing trend towards increasing exports in wind power systems as well as tower & machined parts A high potential of becoming the leading group combined with key industries A high potential of becoming the leading group combined with key industries Growing up as the 2 nd major shipbuilding industry Growing up as the 2 nd major shipbuilding industry ’04 ’07 ’10 (Unit : mil. USD) Exports Category Major Companies Parts Blade Tower Component System KM, Deck, Doha Industry, Gwangdong FRP, Hwashin FRP Dongkuk S&C, Unison, CS wind, Speco, Win&P Taewoong, Pyungsan, Yonghyun BM, Hyunjin Materials, Unison, Mysco Doosan, Hyundai, Hyosung, STX, Samsung Heavy Industries, DSME 58 475 788 Wind Power Export Hyundai Heavy Industries (Pakistan, 49.5MW, 1.65*30) STX (The Netherlands, 50MW, 2*25) Unison (Sri Lanka, 9.7MW, 750kW*13) Hyundai Heavy Industries (Pakistan, 49.5MW, 1.65*30) STX (The Netherlands, 50MW, 2*25) Unison (Sri Lanka, 9.7MW, 750kW*13) 10

11. National NRE Programs Ⅲ

12. Target : To realize the national target, 11% of the NRE share in TPES (launched in 2012) RPS (Renewable Portfolio Standards, 2012) FIT (Feed in Tariff, 2002~2011) Projects for Large-scaled NRE Market NRE Plants : 2,108 ; Power Generation : 10,129GWh ; Budget Supported : 1,141bil. KRW (951mil. USD) Selected 13 mandatory power companies with power plants of 500MW or above 0.5%p ↑1.0%p ↑ Obligatory NRE Production Ratio in Total Power Generation Year20122013201420152016201720182019202020212022~ Mandatory Ratio 2.0%2.5 %3.0 %3.5 %4.0 %5.0 %6.0 %7.0 %8.0 %9.0 %10.0 % (Unit : thou TOE) Responsible for 50% of targeted NRE supply amount by 2020 Responsible for 50% of targeted NRE supply amount by 2020 Inducing a market investment of 48 bil USD Inducing a market investment of 48 bil USD 2012 2015 2020 Reduction of 16 mil tons of CO 2 annually (Reference) 2020 NRE Supply Target : 17,520 thou TOE 12

13. Obligated new buildings of public institutions - with a floor area of or exceeding 3,000 ㎡ - to use more than 5% of total construction expenses to install NRE systems Mandatory Use for Public Buildings (2004~2011) Mandatory use and design with NRE of 10% or more of total energy load used for new, renovated and expanded public buildings over 1,000 ㎡ Revision of Obligatory Program for Public Buildings (2012~Present) Projects for Large-scaled NRE Market Public institutions : Include state administrative bodies, local autonomous entities and state-run companies 13

14. Subsidizing a part of the installation costs of NRE facilities to enhance NRE deployment and relieve the end users’ cost burden (i.e., factories, individual buildings, schools, etc.) Expanding the former ‘100,000 Solar Roof Program’ to promote residential NRE use Supporting various NRE deployment projects by local governments for public buildings, social service facilities and residents of remote areas, etc. Offering corporations a tax reduction of 10% of total NRE investment Providing low-interest loans Subsidy & Loan Programs General Subsidy Program (since 1993) 1 Million Green Homes Program (since 2009) Local NRE Deployment Program (since 1996) Loan & Tax Deduction Program (since 1983) Aiming to disseminate 1 million green homes by 2020 Focusing on PV, fuel cells, wind and bio-energy 14

15. Vision 2015 Vision 2015 Targeting to rank within world’s top 5 in the NRE market Goal for International Market Share : PV 15%, Wind 15% Sale Export Employment Private Investment Private Investment ’09’12’15’09’12’15’09’12’15’09’12’15 (Unit : bil USD) (Unit : 1,000 employees) (Unit : 0.1 bil USD) 3.3 16.7 41.7 2 2 11 37 9 9 27 110 2.6 4.8 7.2 To invest 33 bn USD by 2015 (private: $28 bn, government: $5 bn) To invest 33 bn USD by 2015 (private: $28 bn, government: $5 bn) 15

16. Energy Technology Cooperation Ⅳ

17. ① International Joint Research Program Areas of Energy Technology Cooperation Opportunities to participate in Korea’s research programs which provide funding for technology development and commercialization in the area of green energy 17

18. Areas of Energy Technology Cooperation Energy R&D Forum ② Overseas nations can participate in several fora, which are held regularly, related to energy technology development  Participating countries can share their energy technology strategies and measures for market development Global Green Energy Leaders Forum (2011) Energy Tech Insight (2012) World Energy Congress(2013) Clean Energy Ministerial Meeting(2014, Seoul) 18

19. ③ e-Platform : ETA (Energy Technology Trade Agreement) – to be established - Aims to increase opportunities for sharing quality information on energy technology trade among companies, research institutes and the academia - Through the e-Platform, it is expected that information on major topics and status of technologies relevant for technology trade among stakeholders will be improved, as various information will be provided in accessible form, consisting of domestic and overseas energy technologies Areas of Energy Technology Cooperation 19

20. Thank you Korean.energy@gmail.com