Ministry of Trade, Industry and Energy Policy Goals for Renewable Energy Adoption

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On January 5, 2022, the Ministry of Trade, Industry and Energy (“MoTIE”) announced that renewable energy adoption in 2021 had been recorded at 4.8 GW and published policy targets for further adoption of renewables given South Korea’s carbon. neutral goals.

Renewables adoption in 2021, totaling 4.8 GW, exceeded the original target of 4.6 GW, marking the fourth consecutive year in which actual adoption exceeded the annual target. Adoption by renewable energy source was recorded at 4.4 GW of solar energy, 0.1 GW of wind energy and 0.3 GW of other sources (eg biofuels).

The cumulative adoption of renewable energy reached 29 GW (solar 21 GW, wind 1.7 GW) at the end of 2021. In particular, the adoption of solar energy was 15.6 GW during the four years since the implementation of the “Renewable Energy Plan 3020”. ”, more than 2.4 times the cumulative adoption at the end of 2017. The share of renewable energies in industrial energy production reached 6.5% in October 2021, more than double compared to the end of 2017.

However, due to various factors, adoption in 2021 has slowed compared to 2020. In the case of solar, tighter siting regulations due to safety concerns have reduced new solar installations in mountainous areas ( 0.8 GW in 2021, compared to 1.2 GW in 2020). Other factors include tightened distancing regulations and reduced economic feasibility. In the case of wind, complex approval processes and opposition from residents have delayed new projects. However, an increase in the value of RECs has led to a significant expansion of new projects, and adoption is expected to accelerate in the medium to long term.

The MoTIE has published the following policy goals for further adoption of renewable energy;

  1. Secure the economic feasibility of new installations, through means such as increasing the mandatory RPS ratio from 10% to 12.5%, increasing fixed price offers and offering offshore wind farm incentives.
  2. Improving renewable energy regulations and procedures, through means such as enacting the “Special Wind Energy Law”, improving remoteness regulations and providing analysis on the siting of wind farms.
  3. Improve resident acceptance of renewable energy, through means such as increasing incentives and resident participation, as well as reference to model cases of resident participation in renewable energy projects.
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